article re mt lindsay iron ore project

Came across an article on VMS' Mt Lindsay Iron Ore Project in Tassie in the Dec/Jan edition of Gold & Minerals Gazette (page 96).

Points of interest:

* 18km of prospective iron ore strike

* 81 historic holes - 17 assayed to date, identifying a new zone of mineralisation grading 61.9% Fe and 0.42% Sn; 15 of these averaged ~24m @ 32% Fe; 23 additional holes being assayed with results due late Dec (now early Jan)

* 10,000m current diamond core program using 3 rigs due for completion in mid 2008

* Targeting a first resource statement in mid 2008 of 20MT to 30MT

* Further drilling will follow to increase resource base

* Owing to proximity to existing infrastructure, capex will be lower than other magnetite projects and therefore can move into production with a relatively smaller initial resource

* Looking at getting into production quickly given iron ore prices; scoping study investigating initial production paramters including a 2MT per annum plant as per what is being used at Savage River (25km away)

* Capex estimated at $200m and VMS believes 100MT of resources required to push the button on mine development

* Economic amounts of tin will also be produced

To summarise, looking to drill out an initial 20MT to 30MT resource to confirm the potential then move to increase this further towards 100MT to underwrite capex and mine development process; studies will be undertaken along the way to enable rapid move into production once resource/reserve targets are met

Key point - VMS appear to believe there is potential for 100MT in resources. Would be good to see this stated in an announcement to spark some interest!!!!