The objective of the Bellzone exploration programme completed up until the end of 2009 was to define an initial JORC Resource, expand the knowledge of the Kalia Iron Mineralisation and to undertake field investigations to assess any other potential iron bearing prospects. The programme has involved;

• Surface geology assessment and interpretation
• Ground magnetic surveys
• Geological Mapping
• Exploration drilling both percussion (RC) and Diamond Core, 31,121m completed in 144 drill holes (Figure 1 – Drilling Map)
• Resource Estimation
• Site development of roads, tracks and drill pads to support the mapping, magnetic survey and drilling programmes

The field studies, geological mapping, geological logging and resource estimation has been undertaken by a team that encompasses Bellzone expatriate and national geologists and consultants.

Four diamond and one reverse circulation (RC) drill rigs were used to conduct the drilling programme, which involved;

• Shallow diamond and reverse circulation drilling of the Kalia I oxidised surface mineralisation Deep diamond drilling of the Kalia I magnetite resource

Exploration Highlights

• Initial JORC Resource of 2.4 billion tonnes defined
• An additional potential of 0.9 billion tonnes identified
• Preliminary Whittle Optimisation of JORC Resource indicating mineralisation is potentially economic to 900m below surface
• Shallow RC drilling confirms potential to identify significant high grade oxide resource at Kalia I

Summary of Exploration Activities and Outputs

The primary focus was on the Kalia I central area magnetites. Limited exploration drilling was conducted on the Kalia I bedded oxides and the north eastern detritals.

Drilling Location

Identification of 6 targets for resource drilling (See Figure 1)
i.    Kalia I Oxide – Massive Goethite/Haematite style mineralisation
ii.   Kalia I Magnetite – Primary Iron Target
iii.  Kalia II Magnetite – Primary Iron Target
iv.  Kalia II Detrital – Detrital Iron on Flanks of Kalia II will require upgrading
v.   North West Detrital – Detrital Iron on the Flanks of Kalia I in NW of licence
vi.  Nameiri pisolite – Pisolitic iron to the east of Kalia

Exploration Drilling Completed

• 29,364m of diamond drilling in 88 holes to depths of up to 1,000m into primary BIF
• 1,757m of reverse circulation drilling in 56 holes through surface oxide material to depths of 30-70 m
• 150km of roads and access ways to drill pads constructed and or upgraded

Magnetic Survey

• 160.8km² total magnetic survey area on Kalia and Faranah Project Areas

Exploration and Survey Routes

• 838.6km of geological mapping traverses
• 450.5km of reconnaissance mapping traverses
• 56.5km of detailed exploration routes within the “Central (JORC Resource)” area of the Kalia I

Sampling and Analysis 

• 5,718 Diamond Core samples for Iron
• 778 RC samples for Iron

Data processing and interpretation of results

The results of the drilling, sampling and geological programme were analysed and interpreted by CSA Global UK. The results of which were:

• 2.4 billion tonne Inferred Magnetite JORC
• Exploration potential of 0.9 billion tonne magnetite identified within the JORC area
• Preliminary Whittle Optimisation of JORC Resource indicating mineralisation is potentially economic to 900m below surface
• National Instrument 43-101 Report Completed
• Geological Mapping at scales of 1:50,000, 1:25,000and 1:10,000

Oxide

The preliminary oxide results identified potential Direct Shipping Ore (DSO) zones above the magnetite ore bodies. Sample results indicate grades of 58% and higher. These encouraging results have confirmed the geological assessments of these ores and will be the focus of the intensive drilling programme planned for 2010.