nowa nowa sold but not disclosed

EASTERN IRON ACQUIRES 100% INTEREST IN NOWA NOWA IRON PROJECT
? Eastern Iron has exercised its option to acquire a 100% of the Nowa Nowa Iron Project located in eastern Victoria.
? The Victorian Department of Primary Industries has transferred the tenement, EL 4509 to Eastern Iron.
? Commenced evaluation of a possible mining operation based on the potential iron ore resource at Nowa Nowa.
Eastern Iron Limited (ASX: EFE) (“Eastern Iron”) today announced that it has exercised its option to acquire 100% of the Nowa Nowa Iron project in Eastern Victoria from holder Waygara Mines Pty Ltd (“Waygara”). The successful transfer of the enclosing Exploration License 4509 to Eastern Iron was completed following approval from the Victorian Department of Primary Industries issued on the 3rd February 2012.
Under the terms of the option agreement Eastern Iron is required to pay $100,000 and allot one million shares to Waygara on transfer of the title.
Eastern Iron Managing Director, Greg De Ross, said: “We are pleased to have completed the acquisition of the Nowa Nowa iron project. The project is a strong addition to our existing portfolio and our current focus. The Company has announced a maiden JORC resource estimate and is undertaking metallurgical test work that will allow us to expedite our evaluation of potential mining scenarios for the project.”
Nowa Nowa Iron Project
The Nowa Nowa project area is located north of the township of Nowa Nowa in eastern Victoria, which is in turn 270km east of Melbourne. The project area is well serviced with respect to infrastructure including a rail link from Melbourne to the major regional centre of Bairnsdale, 50km via sealed road from Nowa Nowa.
Magnetite iron deposits at Nowa Nowa were drilled in 1955 by the Victorian Mines Department as a follow up to regional magnetic surveys. Most drilling was centred on the largest of the magnetic targets, the Five Mile Deposit, with 27 cored drill holes completed. Massive magnetite with lesser hematite occurs at 30-50m depth below tertiary sands and Devonian volcanic rocks. These deposits appear to have formed mantos 40-80m in thickness associated with lesser coarse pyrite within altered sediments and are possibly skarns related to a nearby but as yet unidentified intrusive. Other nearby magnetic targets including the Seven Mile, Six Mile and Three Mile deposits have received some exploratory drilling but not to the same extent as Five Mile. Nevertheless these are also potential sources of additional resource and will be explored further.
Eastern Iron is investigating the potential to develop the iron deposits at Nowa Nowa primarily as a source
of feed for steel making operations. The deposits lend themselves to a number of potential development
routes including DSO magnetite where untreated ore is exported with possibly further processing closer to
the end user. Other possibilities include coarse crushing and dry magnetic separation at site to produce an
upgraded product; or finer grinding to produce a high iron product suitable as a blast furnace feed or with
finer grinding product suitable for coal washing applications.
Eastern Iron has recently announced a JORC Inferred Resource of 9.47Mt @ 49.1% Fe at a cutoff 40%
Total Fe. Over the coming weeks Eastern iron will be carrying out preliminary metallurgical test work
investigating possible product scenarios.
Location of Nowa Nowa Iron Project and infrastructure
Investor Information
Eastern Iron is investigating the potential for development of a magnetite processing operation based on
magnetite deposits it holds at Nowa Nowa in Eastern Victoria and under permit in Central Queensland. The
Company is also in joint venture with 3ESteel to investigate the potential for developing large low cost low
grade iron deposits in western NSW.
Further information, previous Eastern Iron announcements and exploration updates are available at the
News and Reports tab on the Company’s website – www.easterniron.com.au
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