The Cookes Creek iron project is focused upon the sout-eastern corner of the Cookes Creek suite of mining tenements. Iron formations are visible over various parts of Hazelwood's tenements at Cookes Creek and over the joint venture ground held with Giralia Resources NL. The iron formations noted in the south-east corner (E46/521) are particularly significant.

During the course of the hoistem survey a large conductance anomaly was noted in the south-east corner of E46/521. Visual examination indicated this to be an iron formation in the hanging wall above the ultramafic sequence.

During December 2007 a reconnaissance sampling programme was performed over a segment of the iron formation with a strike extent of approximately 1.5km. Within the 1.5km sampled, goethetic and haematitic bedded iron formations were observed over a strike extension of approximately 1.4km.

Along the 1.4km segment of the outcrop embedded iron formation, 103 samples provide the following results:

• An average value of 53% Fe (103 samples)
• An average calcite iron value of 58% (103 samples)
• 51 samples returning a value greater than 56% Fe
• 14 samples returning a value greater than 60% Fe

The conductance anomaly has a total strike extent of approximately 7 km. It is possible the iron formation continues beneath the surface, dipping to the south at a moderate angle of dip. The Company has made application for five blocks to the south of E46/521.

Further reconnaissance sampling was undertaken in early 2008. This involved the taking of a further 82 rock chip samples over an area approximating 1.4km of additional strike extent. Of 55 samples in a 1km strike extent of enriched iron values, results included:

• An average value of 47.6% Fe
• An average calcined iron value of 52.3% Fe
• 33 samples greater than 55% Fe