Amazon Bay Ironsands Project

During the quarter the company agreed to acquire up to a 90% interest in the Amazon Bay ironsands project in Papua New Guinea. The transactions terms were approved by shareholders on 24th October, 2007.

The key aspects of the Amazon Bay ironsands project include:

• ironsands are a steelmaking feedstock showing strong growth in demand especially from Chinese steel mills;
• previous exploration work reported that the project may contain (non JORC measurements) up to 445 million tonnes of ironsands to approximately 9 metres deep of +10% magnetics;
• MIL expects to add significant value through a work program aimed at better defining the likely resource target; metallurgical work to establish the most effective process flowsheet and completing initial feasibility studies.
  

Under the Amazon Bay agreements MIL has established an Operating Committee and the work program is underway. An aeromagnetic survey to define detailed drilling targets is being negotiated and is planned to be completed early in 2008. A bulk sample has been prepared and a metallurgical testing program is expected to commence in the current quarter.

A presentation of the Amazon Bay ironsands was given at the Annual General Meeting on 24th October, 2007.

Presentations and More Information

• Chairmans's Address to the AGM 24/10/07
• Amazon Bay Presentation 24/10/07
• Amazon Bay - Boardroom Radio by John_Haggman 301007

For further information contact:

In accordance with Australian Stock Exchange listing requirements, the geological information in this report has been based on information provided by geologists who are corporate members of the Australian Institute of Mining and Metallurgy or Australian Institute of Geoscientists and who have had in excess of 5 years experience in their field of activity.