The Goldsworthy Project comprises three granted Exploration Licences E45/2538, E45/2539 and E45/3137 covering an area of approximately 640 square kilometres and is located approximately 70 kilometres to the east of Port Hedland, close to quality infrastructure including major roads, rail lines and port facilities; and complements Brumby’s other large strategic land holdings in the area including its nearby Pardoo and Telyagel Projects. Refer to Figure 1.

Tenements E45/2538 and E45/2539 were the subject of Department of Mines and Petroleum (DMP) 50% compulsory surrender towards the end of 2008.

During August 2007 the Company signed an Option and Joint Venture Agreement with Independence Group NL (IGO) and Western Australian Resources Limited (WAR) on the Goldsworthy Project, specifically for platinum-copper-gold mineralisation. At that stage IGO and WAR maintained the iron rights.

As part of the Agreement, Brumby undertook a follow-up reverse circulation drill programme to better test the identified mafic intrusive for platinum-copper-gold mineralisation. This initial programme was completed in November 2007.

The results (see table below), from this first drilling programme, included an encouraging intersection of 30 metres (96m-126m EOH) of magnetite mineralisation grading 29 per cent Fe. The hole also intersected two hematite-rich horizons with grades of 28.9 and 25.2 per cent Fe. The second hole in the programme was abandoned above the target zone due to drilling problems.

Table 1 – Goldsworthy Project, Initial RC Drilling Results

  *Indicates hematitic rich horizon

Review of the historic data over the Project area showed that Rio Tinto had delineated magnetite-bearing banded iron formation and ultramafic rock. Two of the Rio Tinto holes intercepted multiple widths of magnetite mineralisation, returning 54 metres at 29.1 per cent Fe from 76 metres and 64 metres at 29.7 per cent Fe from 142 metres in hole 97DG006, and 134 metres at 24.7 per cent Fe from 36 metres and 27 metres at 32 per cent Fe from 208 to 235 metres (EOH) in hole 97DG003.

In negotiation with IGO and WAR, Brumby was able to acquire 100 per cent of the iron rights in February 2008 by entering into an acquisition agreement on both granted exploration licences.

In consideration for the acquisition, Brumby issued 4 million shares to IGO with both IGO and WAR each retaining a 1 per cent gross sales royalty on any iron ore that is extracted from the tenements.  As a result of this transaction, IGO has become Brumby’s largest shareholder with approximately 11 per cent of the issued capital in the Company.

Brumby is now planning to drill two further diamond core holes through the two identified targets to better assess the width of the magnetite mineralisation. Refer to Figure 2.

It should be noted that whilst the eastern most target has been drilled tested by previous tenement owners and also Brumby, the larger western most target has not been tested as the drill holes noted, were pre collars for follow up drilling, which was never undertaken.