Trans Tasman Resources Limited is delighted that an additional licence to prospect for iron ore in the Continental Shelf beyond the 12 mile territorial waters limit has been granted by Crown Minerals. The licence covers 3,314 square kilometers and is for an initial term of four years.

Mr Paul Berend MD of Trans Tasman Resources Limited said that the new licence, which shares a contiguous border along an existing Trans Tasman licence on the southern Taranaki coastline, is highly prospective.

The licence is conditional on Trans Tasman completing a timetabled work program supervised by Crown Minerals. This includes reconnaissance drilling, an aeromagnetic survey and beneficiation tests on samples. The New Zealand registered company has 48 months to complete an initial estimate of the mineral resource potential and submit that to the Minister.

Mr Berend said that "Our work to date indicates that the iron rich sands extend out well beyond the 12 mile limit into the continental shelf area, and now that this licence to prospect has been granted we will be stepping up our prospecting work off the Taranaki coast."

He added that "While our low impact, shallow drilling program will continue closer to the coast in Trans Tasman's Crown Minerals Act existing permit areas during this summer, the granting of the new licence means we will be extending our knowledge further out to sea through an additional aeromagnetic survey over the new area. This survey work will highlight areas of greatest ore concentration, and once these have been identified, further prospecting and analysis will begin."

Mr Berend said that while regulatory requirements over the Continental Shelf are different from those required inside the 12 mile limit, the licence conditions are equally rigorous and prescriptive. He added that "This will ensure that environmental values are well protected."