12 December 2009
BASE IRON
EXPLORATION FINDS three priority TARGETS
Base Iron, (ASX:BSE) the next-generation
iron-ore company with a portfolio of projects in the Mid West, today announced
the identification of three substantial and highly encouraging priority
magnetic targets following the completion of its airborne geophysical survey.
Base Iron?s Managing Director, Tim Carstens,
confirmed the Company has commenced its formal exploration program, as
announced in October, with an airborne magnetic and radiometric grid survey
over its complete project portfolio. The survey was conducted at a line spacing
of 100 metres
and covered some 12,000 line kilometres.
?The processing and
analysis of the geophysical data has resulted in the identification of 24
significant magnetic anomalies. Three of these have been classified as high
priority targets on the basis of their scale and interpreted prospectivity,? Mr. Carstens said.
The magnetic anomaly comprising the Poona East
priority target (Fig. 1) covers an area of some 16km2 and is located
10km south of the Weld Range projects
of Mid West Corporation.
The Tobey Well priority target (Fig. 2) is a
linear feature over 500
metres wide and spans the extent of the existing
tenement holding for over 12km. The Murgoo priority target (Fig. 3) covers an
area approximately 12km2. These two targets are respectively located
7km south and 7 km
north of Ferrowest?s Yalgoo iron project.
Mr Carstens said significant areas of the Mid
West remain under-explored and are still not subject to license or
application.
?Base Iron has taken
the opportunity to lodge tenement applications to extend the Tobey Well
holdings to the North East and South and the Murgoo holdings to the North East
following its encouraging early exploration success,? he
said.
?The three priority
targets will be the focus of Base Iron?s exploration program in the March
quarter. The next phase of target refinement will encompass high value, low
cost data acquisition through rock chip sampling, geological mapping and ground
geophysics programs.
?A drilling
program to progress the targets passing this value creation screening is
expected to commence in the June quarter with a view to generating a
mineralized target estimate before the end of 2009.
?The rapid identification of such significant
magnetic targets and the ability to secure further ground in close proximity to
existing advanced projects and infrastructure validate Base Iron?s confidence
and its investment hypothesis on which the Company?s recent IPO was based.
?Base Iron is in an
enviable position. We have a suite of encouraging long term exploration
projects matching the outlook for the iron ore market, funding to progress an
appropriate exploration program over an extended period and market conditions
that are lowering the costs of exploration,? Mr Carstens said.
ENDS
The information in this report that relates to exploration results,
mineral resources or ore reserves is based on information compiled by Mr. Brian
Davis, who is a Member of the Australian Institute of Mining and Metallurgy and
the Australian Institute of Geoscientists. Mr. Davis is a Consultant to the
Company. Mr. Davis has sufficient experience which is relevant to the style of
mineralization and type of deposit under consideration and to the activity to
which he is undertaking to qualify as a Competent Person as defined in the 2004
edition of the ?Australian Code for Reporting of Exploration results, Mineral
resources and Ore Reserves?.
Mr. Davis consents to the inclusion in this report on the matters based
on his information in the form and context it appears.
ABOUT BASE IRON
Base Iron, (ASX:BSE)
is a next-generation iron-ore company focused on the Mid West, Australia?s
fast-emerging, alternative iron-ore region. With a portfolio of highly
prospective early-stage projects, Base Iron is well positioned to capitalize on
the timeframes for the development of the Mid West and the resurgence of the
iron ore sector in the medium to long term.
The development outlook for the Mid West
continues to be positive. Increasing direct foreign steel industry investment
reflects both the region?s strategic value to steel
producers and the longer term expectations for iron ore demand.
With its recent IPO providing the requisite
cash funding for a multi-year exploration program and its long term projects,
Base Iron is largely insulated from the current equity and iron ore
markets. That the IPO was successfully concluded against a challenging
economic background is recognition of the quality of Base Iron?s team and the potential of its current project
portfolio.
Base Iron is focussed on efficiently applying
a systematic exploration methodology across its tenement holdings that seeks to
identify and efficiently focus our resources on those priority targets that
have the greatest potential to generate transformational value early. This
approach includes the comparative assessment of project potential against
external opportunities that are emerging in the current market. Capitalising on
the relatively open tenure of the Mid West, Base Iron is also actively
expanding its ground positions in response to the success of its airborne
geophysical program.
With a highly-competent Board and Management
team and a progressive outlook on the prospects for iron ore, Base Iron is
ideally positioned to capitalise on the opportunities that will emerge in the
iron-ore market in the medium to long term.
For further enquiries contact:
Tim
Carstens
Warrick Hazeldine / Annette Ellis
Managing
Director
Media and Investor Relations
Base Iron
Ltd
Purple Communications
Tel (08) 9322
8910
Tel: (08) 9485 1254
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http://www.baseiron.com.au
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