Daltons Joint Venture (iron ore, nickel) – Giralia 75%

Giralia holds a 75% interest at the Daltons nickel Joint Venture with Haoma Mining NL (25% interest), located 150 kilometres south of Port Hedland in the Pilbara region of Western Australia. Haoma retains rights to gold/silver and tin/tantalum mineralisation.

Iron Ore exploration
The Daltons JV tenements lie only 20 to 30 kilometres east of the BHP Billiton and FMG rail lines. Competitor activity for iron ore in the area is intense, with Atlas Iron Limited completing a Pre Feasibility Study on its Abydos deposit around 25 kilometres to the north of the Daltons JV area, and FMG reporting strongly magnetic banded iron formation (“BIF”) up to 400 metres thick from the nearby FMG/Baosteel Glacier Valley magnetite joint venture.

Giralia’s Daltons JV tenements host around 30 strike kilometres of Archaean age BIF mapped by the GSWA as extensions to the units that host iron ore deposits and prospects to the north.

In the March 2008 quarter, initial rock chip samples were taken from potential iron ore targets associated with extensive outcrops of prospective banded iron formation. One zone of high grade hematite iron ore was identified with a grade of 62.2% Fe from an outcrop of massive hematite extending for approximately 200 metres by 200 metres.

Using helicopter support, a total of 70 follow up rock chip samples were collected from outcrops of BIF in the Daltons JV area, with 26 samples returning potentially direct shipping (“DSO”) grades of iron ore. Most significant is a substantial 600 metres by 450 metres zone of strong hematite enrichment in the east of the JV area where average iron grades exceed 63% Fe. The mineralisation is interpreted to occur in a fold hinge and appears relatively shallowly dipping locally. The overall thickness of the mineralisation can only be determined by drilling. Additionally, rock chip sampling of an area just to the north of the new discovery has returned a grade of 62.2% Fe from another outcrop of massive hematite extending for approximately 200 metres by 200 metres. This area is a direct extension of Atlas Iron’s Mt Webber prospect, where a rock chip traverse sample of 302 metres @ 59% Fe is reported by Atlas from immediately across the tenement boundary.

Further mapping and sampling of a prominent BIF/chert range in the west of the Daltons JV area outlined potential for magnetite type iron ore mineralisation, with thick zones of BIF grading 30 to 47% Fe identified in preliminary reconnaissance sampling.

Nickel Sulphide exploration
The Kingsway prospect at Daltons comprises a 400 metre long basal contact segment at the irregular northern tip of the 5 kilometre long Daltons ultramafic body. Two reported 1970s drill intersections of 0.9 metres @ 9.3% nickel, 3.6% copper, (within 3.5 metres @ 2.55% nickel, 1.2% copper), and 0.7 metres @ 11.8% nickel, 3.1% copper, (within 3.7 metres @ 2.41% nickel, 0.61% copper) recorded grades of more than 20% nickel over narrow intervals (ie: hole KDDH5 reportedly returned 0.36 metres @ 22.5% nickel, 4.12% copper).