Canegrass Project

History

In May 2009, Flinders reached an agreement with Maximus Resources Ltd (Maximus) to purchase the Canegrass Project, with Maximus retaining a 2% net smelter royalty. Flinders carried out due diligence on the area and determined that it is prospective for gabbro hosted magnetite iron ore deposits.

Location and Surrounds

The tenement package is located approximately 60km south-east of Mt Magnet and 15km south-west of Atlantic Limited’s Windimurra Vanadium Project, in the emerging Mid-West Iron Ore Province of Western Australia. The tenement package comprises 6 granted exploration licences.

Canegrass Project located near Mt Magnet, Western Australia
Canegrass Project located near Mt Magnet, Western Australia

Mineral Resources

Flinders announced a maiden iron ore/vanadium resource at its Canegrass Project in August 2011. With only 5% of prospective stratigraphy explored, there is upside potential to increase the iron ore/vanadium resources.

Table 4 – Mineral Resources
INFERRED MINERAL RESOURCES

 MtV2O5%TiO2%Fe%SiO2%Al2O3 %P%
V2O5 > 0.5% 107 0.62 5.8 29.0 24.5 12.6 0.006
 MtFe%TiO2%V2O5%SiO2%Al2O3 %P%
Fe > 20% 216 25.4 5.0 0.52 28.1 14.0 0.007

Source: Flinders Mines Announcement, 10 August 2011.
Note: See Competent Persons Statement below in relation to these Mineral Resources.

Completed RC drillholes and the Fold Nose and Kinks Resource areas, Canegrass Project, Western Australia
Completed RC drillholes and the Fold Nose and Kinks Resource areas, Canegrass Project, Western Australia

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Geology

Drilling has identified a continuous layered stratigraphy of more than 1,100m vertical thickness – lower units contain elevated vanadium grades with lower titanium and produce an attractive iron and vanadium grade.

Regional magnetics (TMI) showing prospective vanadiferous horizons
Regional magnetics (TMI) showing prospective vanadiferous horizons

Competent Person Statement

The information on this page that relates to Exploration Targets and Exploration Results is based on information compiled by Dr Graeme McDonald who is a Member of The Australasian Institute of Mining and Metallurgy. The information that relates to the Mineral Resource Estimate has been compiled by Mr Paul Blackney of Optiro Pty Ltd. who is a Member of the Australasian Institute of Mining and Metallurgy. Both Dr McDonald and Mr Blackney have sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr McDonald and Mr Blackney consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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