Fraser Iron, Western Australia

Minemakers has an option to acquire an initial 80% equity in two Exploration Licences in Western Australia which are considered highly prospective for magnetite iron ore.

They are located in areas of good infrastructure close to the coast and only about 120 km from the export port of Albany.

The eastern project is termed West Southdown and is contained within E70/2640.  Based on historic aeromagnetic data, it was interpreted that the licence may hold the fault – offset westerly extension of the Southdown Magnetite deposit owned by Grange Resources Limited and Japan's Sojitz Corporation.

Southdown has a resource of 479 Mt @ 37% Magnetite and a feasibility study has been completed upon it.

Minemakers drilled a diamond hole into each of the three West Southdown targets, successfully encountering magnetite in each and the grades were in line with those of Grange.  Results were announced to the ASX on 16 July 2007 and 2 August 2007.

A detailed aeromagnetic survey has recently been completed and will be interpreted in the first two months of 2008.  The aim will be to determine sub-zones where mineralization is thickest and closest to surface.  Drilling of those hot spots is scheduled for March 2008, subject to contractor availability.

The western project area is termed Frankland.  In 2007 one diamond hole intersected weak magnetite mineralization.  This lease has also recently been covered by a detailed aeromagnetic survey which will be used to determine targets for further drilling.

In August 2007, Grange acquired E70/2512, which surrounds its mining leases, from its owner Rio, through a scrip deal valued at nearly A$60M at the time.  That tenement covers the eastern extension of the main Southdown system and, as is the current case in Minemakers' tenement, there was drill delineation of magnetite but at an insufficient density to allow resource estimation.

Outlook and aims

Minemakers intends to value-add to these projects at an early stage by undertaking limited drilling of readily accessible areas to test for the presence of magnetite and to get indications of tonnage potential of the bodies and their grades and depth of cover. Assuming drilling success, it will then look to attract a major partner which would manage the projects to development and fund that work.

Figures

Airborne Geophysics Defines the Magnetite Target Zones in the Frankland Project 154 kb PDF enlargement	Minemakers is Targeting a Western Extension of the Southdown Magnetite Deposit 243 kb PDF enlargement
Drilling at West Southdown	Drilling at West Southdown