| Exploration Overview |
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Eastern Iron's exploration strategy aims to create shareholder value and reduce exploration risk by acquiring interests in projects located close to infrastructure with a good discovery potential or a known resource with growth potential. Eastern Iron is exploring and evaluating a number of mineral projects in Eastern Australia, including the Hawkwood and Cobar Iron Projects. Hawkwood is a joint venture between Eastern Iron, Rugby Mining Pty Ltd (Rugby) and Rugby Mining Limited (TSX Code: RUG). Part of the joint venture area is subject to a 2% Net Smelter Royalty held by Newcrest Operations Limited (ASX Code: NCM). Eastern Iron can earn a 50% interest in the exploration area by spending $700,000 within three years and can earn up to an 80% interest by spending in staged increments to a Bankable Feasibility Study. The joint venture transation has been accepted by the TSX Venture Exchange. Eastern Iron is negotiating with potential joint venture parties to investigate downstream processing options for the large tonnage Cobar Iron Project (627 Mt @ 10.3% Fe, above a 5% total Fe cut-off grade, announced to the ASX on 30 September 2009) and is also evaluating further new projects and exploration opportunities involving iron ore and other steel-related minerals that have potential to add value to our existing iron assets. Additionally, recent Board appointments have further strengthened our project generation / evaluation team in our search for quality iron, copper, copper-gold and precious metal assets that have the potential to generate cash flow.  Location of Eastern Iron’s existing project areas and important infrastructure |