Iron Road continued its high level of activities aimed at advancing the flagship Central Eyre Iron Project hosting South Australia’s largest iron ore mineral resource. The JORC global mineral resource at the CEIP increased to 2.1 billion tonne with 1.1 billion tonne in the indicated category. Positive results were returned from sinter test work and community engagement at the CEIP continued.

Highlights

Central Eyre Iron Project

A. CEIP DFS well underway, with several key steps undertaken during quarter:

1. Engineering & Design packages tendered, with award due in February 2012 after consideration of received bids.
2. Appraisal underway of rail and water pipeline routes and alignment.
3. Extensive permitting and approvals studies commenced including flora & fauna, noise/dust, traffic, geotechnical.
4. Acquisition of Airborne LiDAR and photo mosaic over entire project area, including transport corridors to aid planning and design.
5. Power connection study with ElectraNet expected late Q1 2012.

B. Completion of Stage VI JORC resource estimate with the global mineral resource at the CEIP increasing from 1.33 billion tonne to 2.10 billion tonne, with 1.11 billion tonne in the indicated category.

C. Further resource drilling completed at Hambidge and underway at Rob Roy (Murphy South eastern extension).

D. Project value shown to increase dramatically with the combination of potential product pricing premium and increasing Mineral Resource size.

E. Sinter characterisation test work undertaken in Japan demonstrated significant benefits in use for steel mill customers with consequential positive implications for obtainable pricing premium for CEIP product.

Gawler Iron Project
Successful completion of Stage II diamond drilling program during December 2011 with significant intersections of iron at four prospects.