NEWS The economic downturn of recent months has produced a new set of challenges for all mining companies and no less for Polaris. Management has responded by developing a strategy to preserve available cash resources while continuing to advance the Company’s project development position. As a result, a number of initiatives are now in place: 1. The Company is currently focused solely on advancing the Carina prospect, suspending work on other projects; 2. Divestment of low prospectivity assets has commenced; 3. Field work for the Yilgarn Project has been curtailed and the Carina camp demobilised; 4. Staffing numbers have been reduced to a core capability to focus on assessment of the data collected this year; 5. All discretionary expenditure has been curtailed while still continuing studies that are necessary for marketing iron ore such as the metallurgical test work; and, 6. Enhanced efforts to procure joint project funding partners are underway.
Using these means Polaris has sufficient cash reserves to last throughout 2009, should it be necessary, while still allowing the Carina project to advance through in-house studies. While work has slowed, the market downturn provides Polaris with an opportunity to complete the assessment of the best Yilgarn Iron Ore Project development options and secure a funding partner to facilitate the next stage of the project. The recent increase in tonnage and grade of the Carina deposit reinforces the positive feedback on our ore’s quality and that it is acceptable to a range of offtake customers. Given the positive outcome of the prefeasibility study earlier in the year, I believe we are well down the track of becoming the State’s next iron ore producer and are well placed to manage these difficult economic times. I close in wishing all Polaris shareholders the compliments of the season and a safe and happy New Year.
Jonathan Lea Managing Director MESA GE FROM THE MD Jonathan Lea POLARIS
POL Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
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