feasibility study

Feasibility Study

During the quarter, the Company continued the feasibility study which, whilst an accelerated
timetable, is scheduled for completion by the end of the March quarter 2011.

GR Engineering Services, a leading and well respected engineering firm in Perth, is
managing the feasibility study with assistance in the United States by a civil engineering
firm from Reno, Nevada.

Along with existing permitting, environmental, water, geological, rail and port consultants,
the Company has engaged leading consultants in the respective fields of resource
estimation, geotechnical assessment, mining engineering and rail siding and load out facility
design work to assist with the feasibility study.

The Buena Vista feasibility study is premised on accessing ore solely from the West deposit
on the following parameters:
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A base mine life for Stage 1 of around 10 years;
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An annual mining rate of approximately 3.5 Mtpa ? 4.0 Mtpa of ore;
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A crushing rate of approximately 600 tph and plant throughput rate of approximately
400 tph;
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An annual concentrate production rate of up to 1.5 Mtpa; and
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A final concentrate grading +66% total Fe.

Mine planning and production scheduling has commenced.

Geotechnical investigations are nearing completion.

All site infrastructure investigations are proceeding satisfactorily