HOGAN & PARTNERSHOGAN & PARTNERS STOCKBROKERS PTY. LTD. ACN...

HOGAN & PARTNERS
HOGAN & PARTNERS STOCKBROKERS PTY. LTD. ACN Email: [email protected] Website: www.hogan.com.au
Comment
The global demand for iron ore is currently at
record levels, driven principally by China’s rapid
industrialisation and accompanying demand for
construction materials. Iron ore producers have
recently secured an unprecedented 71.5% rise
in the price of their product in the annual price
negotiations with the Japanese steel mills.
IOH offers speculative exposure to prospective
properties in the Pilbara region of Western
Australia. Apart from a 1.25% iron ore production
royalty, IOH owns 100% of these projects.
The 4 projects contain potential extensions of
the pisolitic channel iron ore deposits in the
tributary creek drainages of the Marillana-
Yandicoogina-Weeli Wolli Creek drainage
system, host to two large, currently operating,
pisolitic iron ore mining operations.
The Channel Iron Ore deposits being mined at
the Yandi and Yandicoogina operations are
known to extend beyond the boundaries of these
existing mines and into the drainage systems
covered by IOH’s tenements.
IOH is an exploration company. This speculative
investment offers subscribers the opportunity to
participate in the possible discovery of pisolitic
Channel Iron Ore deposits, and the chance of
subsequent commercial exploitation.

Key Points
=
• Right Timing
Demand for iron ore is strong; with producers receiving
unprecedented price rises (+71.5%) for 2005
production from the Japanese steel mill end users.
• Right Exploration Address
WA’s Pilbara ranks among the world’s premier iron ore
addresses. IOH’s 100%-owned leases directly abut the
tenements hosting BHP Billiton Iron Ore Pty Ltd’s
Yandi pisolitic iron ore mine and Hamersley Iron Pty
Ltd’s Yandicoogina pisolitic iron ore mine.
Advanced Project Portfolio
IOH’s projects are prospective for pisolitic iron
ore, an ore type which makes up over 45% of
the total iron ore mined in the Pilbara region
and which is highly sought after by steel
makers for its excellent sintering qualities.
The leases cover 4 separate areas that
contain potential for continuations of the nearsurface
channel iron deposits being mined at
Yandi and Yandicoogina. Planned exploration
will involve remote sensing interpretation,
mapping, surface chip sampling, geophysics if
appropriate, and then systematic programmes
of RC drilling on each property.
The proximity of the existing mines and their
associated infrastructure (including rail links)
and the Great Northern Highway put IOH in a
very favourable situation if the exploration is
successful in identifying commercial grades
and tonnages of channel deposit iron ore.
Lamb Creek (100%) :
A single, granted, Exploration Licence covers
117km2 to the south-west of the Yandi mine.
The independent geologist’s report records
the existence of pisolitic iron ore within the
property and considers the project area to be
“very prospective for channel iron deposit
mineralisation”.
The Three Sisters (100%) :
One granted EL and one EL application together cover
116km2 about 3km north of the Yandicoogina mine. The
independent geologist rates the prospectivity as “good”
and notes that previous grab samples suggest that the
iron content is high. Existing mapping shows channel
iron deposit outcrops, including one 4km long, 200m
wide, with observed thicknesses ranging to 9m.
Yandicoogina Creek (100%):
One granted EL covering 36km2 about 5km south of the
Yandicoogina mine. The independent geologists rates
the prospectivity to be “moderate to high”. Large blocks
of channel iron deposit material are visible at surface.
North Marillana (100%):
One granted EL of 58km2 about 1km to the north of the
Yandi mine. Channel iron deposit material is mapped
as present in the SW part of the tenement and along
the drainage that runs through the area. Prospectivity
rated as moderate.