Beebyn Iron Ore Project- (Giralia 100%)

The Company has announced an initial JORC compliant resource of 7.2 million tonnes @ 57.2 % Fe for its 100% owned Beebyn–Weld Range Project in Western Australia's emerging Mid West iron ore province.  Giralia is exploring a 6 kilometre long segment of the north-eastern Weld Range, immediately along strike from the Midwest Corporation Ltd and Sinosteel Corporation Joint Venture.  Midwest/Sinosteel recently announced a resource of 50.1 million tonnes @ 59.2 % Fe for its Beebyn segment of the Weld Range (within 2 kilometres of Giralia's tenements), and is proceeding with a Pre-Feasibility Study on mining at a minimum rate of 15 million tonnes per annum from Weld Range.  Importantly, rail infrastructure is proposed right to Giralia's "doorstep".

Giralia’s initial resource estimate covers only the western 3 kilometres of the Company’s 100% owned 6 kilometre long segment of the Weld Range, supporting the our Exploration Target of 10 to 20 million tonnes of hematite direct shipping ore (“DSO”) on the Weld Range.  Completing a preliminary resource estimate was a priority for the Company to ensure involvement in discussions on regional infrastructure and development.

Delineation of the initial resource is based on a total of 44 reverse circulation ("RC") drill holes completed to date by Giralia in testing its wholly owned segment of the Weld Range.

During the December 2007 quarter, Giralia completed 18 RC drill holes (holes RCB027 to 044) for 1484 metres with significant low phosphorous iron ore intersections returned including 43 metres @ 57.5% Fe, 0.04 % P (RCB033), and 28 metres @ 59.4 % Fe, 0.045% P (RCB035).

Selected Intersections;  October 2007 RC drilling Beebyn-Weld Range.

Intersections quoted using lower cut-offs of 50% and 55% Fe.  Up to 6 metres included material below cut-off. All coords in AGD 84-50. XRF analyses by Spectrolab Laboratory Geraldton.   EOH = open at end of hole. RC samples collected as 2 metre riffle split composites.  QA/QC included field duplicates and Certified Reference Materials.   

Further exploration and resource drilling is planned at Beebyn–Weld Range in the first calendar quarter of 2008.  Drilling will include step out drilling along strike of the W22 zone, the largest and highest grade of the 4 zones of hematite mineralisation defined to date, which remains open ended and untested for approximately 1 kilometre from the western end of the resource model.

Initial drilling is also planned (subject to anticipated imminent tenement grant) at the Company’s 100% owned Beebynganna Hills project, an 11 kilometre long iron formation range only 10 kilometres to the south of the Weld Range, where mapping and surface sampling by Giralia has outlined at least seven zones of unexplored high grade (>60% Fe) hematite mineralisation, including two zones with grades in excess of 65% Fe.  Based on surface mapping and sampling, the Company has an initial "Exploration Target" of 50 million tonnes of hematite mineralisation at Beebynganna Hills.

Beebyn Iron Ore Project Location on Aeromagnetics