| Cobar/Main Line Projects |
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Eastern Iron's initial projects are based on the existence of very large quantities of shallow, low grade, yet easily extractable iron in central western NSW, adjacent to existing, port linked, public access rail infrastructure. Innovative thinking and prompt action by Eastern Iron has enabled it to secure one of the largest tenement positions in this region of Australia, covering a large part of central western NSW. These deposits are Channel Iron Deposits (CID) formed by the weathering and alluvial concentration of lateritic (iron-rich) soil material in old river beds (palaeochannels). It is the process of mechanical concentration and chemical upgrading of the lateritic material that provides this type of deposit with the economic potential that may be suitable for blend feed or further beneficiation. The exploration targets are large tonnage, easily extractable maghemite deposits in shallow palaeochannels close to public-access rail and road. Eastern Iron's project areas have the potential to meet these criteria and the Company is continuously assessing new areas and opportunities.  Location of Eastern Iron's existing project areas and important infrastructure In September 2009, Eastern Iron announced initial resource estimates for the Company's Cobar and Main Line Projects located in central NSW, Australia. These estimates are reported in accordance with the 2004 JORC Code. The current resource estimates of 627Mt above the 5% Fe cut-off for the 13 prospect areas are detailed in the announcement dated 8 October 2009. Eastern Iron is negotiating with potential joint venture parties to investigate downstream processing and marketing options for the large tonnage Cobar Iron Project. Additional resource calculation work for drying magnetically recoverable product from the Cobar and Main Line Projects will be announced shortly and further work programs are being considered with joint funding of these activities being pursued through joint venture discussions with interested groups. |