Ironclad Mining Limited (Ironclad) was established to accelerate the development of the exciting Wilcherry Hill iron ore deposits located 40 kilometres north of Kimba on South Australia’s Eyre Peninsula. The Wilcherry deposits contain coarse crystalline magnetite and low silica contents which enable low cost and efficient production of concentrates containing over 70% Fe with very low impurity levels. In addition, metal recoveries of over 95% and mass recoveries of 50% and up to 75%, are significantly higher than for typical Australian banded iron formation (BIF) magnetite deposits.

The existing JORC resource of 44 million tonnes at an average grade of 36.4% Fe is hosted by 3 of 93 magnetic anomalies within the central tenement of Wilcherry Hill which has potential to host 300 – 600 million tonnes of similar mineralised material according to an independent review. Further similar targets lie in Ironclad’s tenements to the east and west of Wilcherry Hill and a drilling program of at least 35,000 metres is planned from September 2007 to better define and expand the current resources and test selected regional magnetic targets.

Ironclad is earning an 80% interest in the iron ore within the tenements held by Trafford Resources Limited through expenditure of $10 million over 2 years and has commenced a Pre-feasibility Study to evaluate the optimum production rate, product type and product transport options. The study, costing approximately $9 million, will be completed by late in the first quarter of 2008 and subject to results is expected to lead to a feasibility study with first production planned for mid 2010.