Cazaly Resources has upgraded the iron ore mineral resource estimate to 33.6 million tonnes at 56.1% iron for its 100% owned Parker Range Iron Project. The Resource is now 70% in the Measured category and tighter geological control has resulted in a lower internal dilution and a higher overall grade than the June 2010 update.

The ore retains high value in use properties with ultra-low phosphorus content. There is potential to upgrade the lower grade material and the regional project will be tested by an extensive drill campaign in 2011.

Importantly, there is strong government support for key infrastructure. The project is located approximately 15 kilometres south-east of Marvel Loch and about 60 kilometres by road south of the Perth-Kalgoorlie railway near Southern Cross in the Yilgarn region of Western Australia.

The upgrade follows a program of infill drilling which is part of the Definitive Feasibility Study which is currently underway.

The company has also executed formal documentation for the leasing of the accommodation village at Marvel Loch and the rail load out facility at Moorine Rock.

Engineering and design work is ongoing and almost finalized and the company is awaiting details of its application for export allocation from the Fremantle Port Authority.

Cazaly is planning a regional exploration program later in 2011 and much potential remains in further expanding resources for the project as most of the 16km long BIF unit has yet to be explored.