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Western Australia
Pluton has an exclusive right to earn a 50% beneficial interest in five Tenement applications from Portman Iron Ore Ltd. in the vicinity of Yampi Sound in the Kimberley region of Western Australia. This area is one of the four main iron producing districts in Western Australia, with an existing iron ore operation located on Cockatoo Island, and the re-development of mining activities on Koolan Island.
Pluton management believe that high grades, low impurities, existing infrastructure and ready access to seaways make iron ore from the Yampi area attractive for exploration. A strong iron ore price (link to graph shown in investor center) and the proximity of the Yampi ores to Chinese and Indian markets further strengthens the underlying potential for the region to yield a profitable return to investors.
Pluton has a right to earn an interest in five tenements. However, the Irvine Island tenement is regarded by managnement as the highest priority for the company as this tenement contains known mineralisation and is proximal to existing infrastructure.
Iron mineralisation on Irvine Island forms an extension of mineralisation being mined on the adjacent Cockatoo and Koolan Islands by Portman (in joint venture with Henry Walker Eltin) and Aztec Resources Ltd, respectively.
Mineralisation outcrops along the eastern flank of the island. BHP briefly explored the island in the early 1970's and, based on surface mapping and sampling, estimated an open-cutable deposit (pre-JORC) of 7.5Mt at >55% iron. This included an open deposit of 3.5Mt of >60% iron located on the islands isthmus region. Although BHP recommended drilling, no documentation has been identified to date to show that this was ever completed.
The size and grade of the estimated deposit on Irvine Island compares well with the 3.5Mt of iron ore identified by Portman on nearby Cockatoo Island.
Pluton intends to work toward having this Tenement application granted as a priority and then to take steps toward commercial exploitation of the iron ore. Pluton will begin native title negotiations with the registered claimant group in early 2007. Exploration will also focus on extending the existing resource to depth.
The remaining 4 tenement applications cover extensions of the same prospective geological contact as that hosting mineralization on Koolan, Cockatoo and Irvine Islands. |
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Map of Yampi Sound in the Kimberley Region, Western Australia, showing the five Portman tenements in which Pluton has the exclusive right to earn a 50% interest under the arrangements summarised in Section 10.1.
 Geological map of Irvine and Cockatoo Islands showing the location of iron ore mineralisation. The base map has been modified from Western Australia Report No. 50 by Finnucane. This a 1939 map. A search by the Company has not disclosed any information that is inconsistent with this map. Figures quoted for Irvine Island are classified under the current JORC code as Exploration Results (see text this section for more detail).
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