Softrock Solutions

The Koolan Island hematite mining operation is in Yampi Sound, off the northern Kimberley coast of Western Australia. Almost 70 million tonnes of high grade (Fe @ 67%) iron ore was mined by BHP from Koolan Island from 1959 to 1993.

Recent geological surveys and resource in-fill drilling programs confirm that Koolan Island has resources of 67.7 million tonnes @ 62.8% Fe, including reserves of 30.2 million tonnes at 63.8% Fe. This resource is located within four deposits, Main Pit, Acacia, Mullet and Barramundi.

Koolan iron ore is very high quality and low in impurities.

Hematite production at Koolan Island recommenced in early 2007 with the first shipment achieved in June 2007 and is expected to reach its targeted ore production rate of 4Mtpa by December 2011.

Current ore production is from the satellite deposits at Acacia, Mullet and Barramundi. Access to the high grade Main Pit deposit has commenced. Seawall construction, dewatering and footwall rehabilitation is scheduled for completion in late 2011 which will allow full access to Main Pit. Main West cutback has commenced, allowing early ore source from Main Pit.

Koolan Island presents a number of organic growth opportunities owing to high prospectivity, with identified untested hematite outcrops, and Main Pit ore surface extensions along strike and down dip providing outstanding synclinal and anticlinal structural targets.