Selleheim

Eastern Iron Limited

Nowa Nowa Iron Project

Eastern Iron Limited (ASX: EFE) was listed on the ASX in May 2008 to investigate iron ore potential within the infrastructure-rich east coast of Australia. Eastern Iron is evaluating the Nowa Nowa iron project in south eastern Victoria.

At Nowa Nowa, Eastern Iron has defined high grade, open pittable iron deposits relatively close to transport and port facilities. The company has calculated an Inferred Resource of 9.6Mt at 50% Fe in two deposits with excellent exploration upside. Initial metallurgical work indicates that a high grade concentrate may be produced from relatively coarsely crushed ROM material treated through a low capex wet LIMS facility. A Definitive Feasibility Study (DFS) into the potential development of the magnetite-rich iron ore at the Five Mile deposit has been completed.

Eastern Iron has progressed investigations to transport iron concentrate product via loading directly to suitably configured bulk carrying vessels off the Victorian coast. The proposal is that iron concentrate would be delivered from the mine either by truck or slurry pipeline some 15 kilometres to a point close to the coast south of the mine site. The iron concentrate would then be stockpiled, and during ship loading mixed with water at a specified solid to water ratio, loaded into a slurry line and pumped offshore directly onto +100,000 tonne vessels. The bulk carrier would be attached to a single-point bottom-anchored mooring with the slurry line secured to the sea floor and entering the vessel from the mooring point similar to that used in the Taharoa iron sands operation in New Zealand.

Estimate of costs from ISG’s report suggests that operating costs for mine gate to ship are of the order of A$15.00 per tonne of product. The feasibility study estimated total mine site costs of A$26.10 per tonne making an FOB cost of A$41.10 per tonne (US$34.00 per tonne), resulting in a very cost competitive operation. No allowance has been made at this stage for additional process (crushing) costs that may be required depending on the sizing selected as optimal for slurry operations.

ISG estimates that capital costs are likely to be in the order of an additional A$16M for a total project capital cost of A$49.6M.

Nowa Nowa copper

Within its tenements Eastern Iron has identified extensive Silurian volcanics believed to be the same rocks that host important volcanogenic massive sulphide (VMS) base metal sulphide deposits in Victoria and southern NSW. The company has completed an extensive VTEM survey which detected four strong, high priority conductors possibly caused by the presence of massive sulphide deposits.

Drilling carried out by previous explorers within the Nowa Nowa area intersected significant copper, lead, zinc and gold mineralisation in altered volcanics and sediments consistent with the VMS interpretation, with a best intersection of 13.6m assaying 3.8% Cu at the Three Mile prospect in the south east of the licence. A coincident high priority VTEM conductor identified over this prospect identifies it as a high priority for follow up work including drilling.

For full details please visit the Eastern Iron website - www.easterniron.com.au