INTERVIEW WITH KEITH WHITEHOUSE, MANAGING DIRECTOR OF IRON MOUNTAIN MINING LIMITED (IRM)

“Highly Prospective Iron Ore Properties”

http://www.brr.com.au/event/48794

WEDNESDAY, JULY 30, 2008, 1:00 PM

            BRR    Good morning and welcome to Boardroom Radio. Today, we are speaking with Mr. Keith Whitehouse, Managing Director of Iron Mountain Mining

10                    Limited. Thanks for joining us today, Keith.

            IRM      Yes, it is good to be back.

            BRR    Keith, Iron Mountain Mining has been exploring a number of highly prospective iron ore properties in WA and Tasmania over the last quarter, in

15                    particular Blythe, Miaree and Mount Richardson. What can you tell our listeners about these projects?

            IRM      Well, our focus of work has been down in Tasmania on the Blythe Project. This is an iron ore prospect, a magnetite prospect, close to existing infrastructure with 30 kilometres from the port of Burnie. We are immediately

20                    adjacent to a railway line. We have identified high-grade magnetite in the area. We have previously reported that. Finally, we have had our hot little hands on a drill rig that was suitable to drill it and have proceeded to do so. During the quarter, we drilled the Hampshire prospect. We have previously referred to it as Hampshire Railway or Railway. It is located at the town of

25                    Hampshire, railway siding, just south of Burnie. We drilled 18 holes into that property. We struck good magnetite on most of the holes and we are pretty happy with that. We then moved onto our Kara North prospect where during the quarter we drilled 14 holes and we are still drilling on that prospect at the moment. I think we are up to hole 32 now. We are very happy with what we

30                    are seeing out at the Kara North prospect. It is looking good. We are getting some very large intersections of magnetite, up to 42 metres, very high grade-looking material. When I say it is high grade, we are basing that on a visual estimate only. We have sent samples for assay, but assay labs are very slow, but we expect to get assay results back during August for Hampshire and for

35                    the first lot of Kara North drill holes. We are going to be continuing drilling down on Blythe. We have got our Kara East prospect we will get some holes into. We have also defined a further area which we are calling Sea Slug simply because that is what the shape looks like on the map, and we are keen to get some drill holes into that. So that is what is going on with the

40                    Blythe prospect.

                        Our Miaree Project in WA, this is a big exploration project. It has got the potential to be a company maker. As a result of detailed magnetic surveys we did over the area, we have now worked out where we want to put initial drill

45                    holes and to put in place a plan to drill 80 drill holes in there starting in the middle of August. So we are looking forward to getting into this. It is a big project in an area that is looking pretty interesting from an iron ore point of view. It is on the same formation as the Cape Lambert Project to the east and is adjacent to two big magnetite projects, CITIC Pacific and Australasian Resources on their Balmoral projects. So we have got high hopes, I guess you would say, for Miaree. We are certainly keen to get in there and drill on that.

5                      Our third project has been Mount Richardson. During the quarter, we have set up and started conducting a flora survey. This is a baseline environmental survey that we need to complete to enable us to move the project forward with further drilling. The interesting thing about this, we have had people up on site, our own people on site, just doing some further reconnaissance work

10                    and we are very hopeful that this project will proceed ahead. It looks like that it has got potential to host quite a good-sized resource that could be developed in conjunction with other resources or potential resources in the area.

15                    So, I think that is a pretty good rundown on what we have been up to during the last quarter.

            BRR    Thanks for the insights there, Keith, and obviously busy with your iron ore projects at the moment. But there has also been a potential limestone deposit

20                    in conjunction with your partnership with Macquarie Marble and Lime at a site at Wauchope, near Port Macquarie in New South Wales. Can you just let our listeners know what this means to Iron Mountain Mining?

            IRM      Yes, the Wauchope project is an interesting one. Iron Mountain Mining owns 60% in Macquarie Marble and Lime. The project is really an existing

25                    limestone quarry which has previously produced agricultural lime. However, it is apparent that this product is a bit more than agricultural lime. It looks to have potential as dimension stone. Dimension stones are the big stone blocks that are then sliced and diced to make tiles and vanity tops and all that sort of stuff. So this particular limestone looks to have potential in that area.

30                    We have shown it to quite a number of stone people and they like what they see. We have organized for the product to be shown at what is called the Verona Fair which is the major international fair where stone merchants look at all the products that are available around the world and decide what they like and what they want to run with. Based on the results of that, we will be

35                    looking at further developing the project. It is a bit of a strange run. It is not our main core business, so we are just proceeding very slowly with that. Our core business is iron ore, but there looked to be some potential cash flow benefits that could arise out of early production of basically marble from the quarry. So we are just taking it very slowly. The stone business is not one we

40                    know well, so we are quietly finding our way around and finding who are the right people to work with and so on to develop that. It is a bit of a sideline, so we are not going to let it distract us too much from our main target which is iron ore.

45        BRR    Definitely some positive news there coming from Iron Mountain Mining. I would like to thank you for your time today, Keith, and we look forward to hearing from you again soon.

            IRM      Thank you, (inaudible) (0:06:26).

            BRR    That was Keith Whitehouse, Managing Director of Iron Mountain Mining. If you have any questions about this broadcast or any other broadcast, please feel free to contact us on brr@brr.com.au. I am (inaudible) (0:06:39) and thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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