"25 January 2008 ASX RELEASE YILIGARN IRON ORE PROJECT UPDATE
o Key contractors WestNet Rail, Fremantle Ports, ProMet Engineers and Coffey Natural Systems appointed to manage components of current Yilgarn Iron Ore Project pre-feasibility study. These groups are being managed by the appointed project coordinator, Prodemas International
o Drilling resumes at priority prospects north of Koolyanobbing following the 2007 programme at Carina that intersected 80-90m of massive hematite goethite.
o Application lodged for approval to drill 60Mt Bungalbin East iron ore deposit following flora surveys by environmental consultants
The Directors of Polaris Metals NL (ASX: POL) are pleased to provide an update on the ongoing development of the Company’s 100%-owned Yilgarn Iron Ore Project, 60km north of Koolyanobbing in Western Australia.
The project, with a target potential of between 100-200Mt, is a key component of Polaris’ planned transition to iron ore producer during 2009.
Pre-feasibility Study Polaris has appointed the key consultants to manage infrastructure and environmental elements of its current pre-feasibility study (PFS) under the overall management of Prodemas International.
The PFS, which is on track for completion in mid 2008, is assessing the economics of mining and exporting iron ore from the Yilgarn region via a rail link to the Kwinana Port. An economic evaluation study in 2007 identified the project’s potential viability based on a 100-200Mt target potential, sufficient for a 10-20 year mine life at an optimal mining rate of 10Mtpa. Contracts have been awarded to the following service providers:
o Fremantle Ports – berth development at Kwinana o WestNet Rail – rail considerations, including provision of load-out facility and rail passing loops o Coffey Natural Systems – environmental studies and approvals o Promet Engineers – mine site and port infrastructure Drilling
RC drilling re-commenced on 16 January 2008, continuing the 8,000m program commenced in December 2007. Drilling resumed initially at the Chamaeleon prospect and will continue on to the Vela, J4 Extension and Musca prospects, with additional drilling planned for Carina.
The drilling program is aimed at testing and defining direct shipping grade iron ore resources (DSO) and the planned drilling density is sufficient to allow initial resource estimates to becompleted on the Carina, Vela and J4 Extension deposits. The drilling campaign is planned to continue throughout 2008 on these targets as results warrant, and as approvals are granted on other targets in the project area. Polaris has confirmed drill rig access by jointly contracting an RC rig for all of 2008 with its spin-out company Southern Cross Goldfields.
Results from the Carina drilling completed last month are now being finalised by the assay laboratory and are expected in coming weeks. Drilling intersected massive goethite-hematite mineralisation over a strike length of 1.5km, true widths of 80-90m, and depths to 90m. The mineralisation is open along strike and at depth.
Environmental Approvals Flora surveys have been completed at the Bungalbin East prospect and a request for drilling approval has been lodged with the Department of Industry and Resources. Flora and fauna surveys will be continued over the Bungalbin and other target areas throughout 2008 to ensure a comprehensive understanding of the environment, leading to the formulation of impact mitigation and management plans as a prerequisite for obtaining mining approval. The Western Australian government recently excluded Bungalbin East from a proposed expansion of the Mount Manning Nature Reserve for three years, enabling Polaris sufficient time to further define this important iron ore deposit, and allow a full appraisal of the relative economic and environmental value.
Portman Settlement Polaris and Portman are continuing with the finalisation of their Settlement Agreement with regard to tenements within the Yilgarn Iron Ore Project. The parties have reached an agreement in principle for a commercial resolution, and are currently completing due diligence studies.
For and on behalf of POLARIS METALS NL"
cheers.
POL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)