Diamond Drilling Programme

The diamond-drilling programme has four objectives:

1. Extend the Kalia I inferred JORC resource.
2. Upgrade the Kalia I inferred JORC resource to indicated and /or
    measured.
3. Test the Kalia I magnetites at depth
4. Test the Kalia II magnetites

It is planned to achieve these objectives using the four Bellzone diamond drill rigs and drilling 22,500m

Reverse Circulation (RC) Drilling Programme

The objective of the RC drilling programme is to define the depths and grade distribution of iron oxide ore at Kalia. The programme will target the massive iron oxide within the JORC resource area and also Detrital deposits at Kalia I and Kalia II.

Within the area of the JORC Resource, drilling will target iron oxide ore above the primary BIF’s, these zones have been intersected with diamond drilling, however due to low sample recovery of the oxide, the information value is low. The targets are a haematite / goethite assemblage with a cuirassed layer on the surface. It is expected that ore to depths of up to 60m will be defined. The initial drilling programme will define the thickness, grade and oxide characteristics and be of sufficient density to define an inferred resource.

The drilling of the Kalia I and Kalia II detrital deposits will be undertaken to define the distribution grade and thickness of detrital ores. This will be achieved by drilling strategic profiles across the target areas. The data will provide an indication of the potential of the detrital ore which will determine the ongoing drilling priorities.