Mutooroo Magnetite Project, SOUTH AUSTRALIA

Mutooroo magnetite deposits are part of the extensive Braemar ironstone formation, a regionally extensive sequence of magnetite-bearing sedimentary siltstones, stretching for over 200 km SW from Broken Hill in NSW.

Minotaur Exploration Ltd and Sumitomo Metal Mining Oceana Pty Ltd are joint venture partners in the Mutooroo magnetite project located around 100 km SW of Broken Hill (refer figure).

Seven significant magnetic anomalies have been modeled:  Muster Dam, Muster Catch, Muster South, Duffields, Surrender Dam, Peaked Hill and Peaked Hill West.  For the first five of these an exploration target of 2.4 to 4.0 billion tonnes within a strike extent up to 20 km has been identified.  Refer table and figure.

Exploration target

The term “Exploration Target” should not be misconstrued as an estimate of Mineral Resources and Reserves as defined in the JORC Code (2004), and the term has not been used in that context.  The term is conceptual in nature and it is uncertain if further exploration will result in the determination of a Mineral Resource.  Refer Clause 18 of the JORC Code (2004).

Muster Dam inferred resource

Muster Dam reports a JORC inferred resource of 1.5 billion tonnes at 15.2% Davis Tube Recovery (DTR) which matches the upper end of the exploration target for that deposit.  The magnetite body, which on average is only 30 metre below surface, varies in width between 200m and 400m.

Exploratory drilling at Duffields recently recorded FDTR recoveries of 21.8%.

Muster Dam is within 35 km of the main E-W standard gauge rail line and the Barrier Highway linking Broken Hill and Adelaide.  The nearby Murray Basin is a prospective water source for the project.  Power is available from the HV transmission line supplying Broken Hill.

A Scoping Study, due for completion in Q1 2012, will quantify the potential for the Mutooroo magnetite project.

Updated January 2012