The Company has tenements covering a 27km strike length of the vanadiferous magnetite Shephard Discordant Zone. Of this 27km, 6km, or 22%, (inclusive of the existing pit) has been drill tested to date, both along strike and at depth. From the aeromagnetic and ground mapping undertaken to date, there is strong evidence that the remaining 21km will result in substantial extensions to the existing vanadium mineralisation both along strike and at depth within the current tenement holdings.

 

Drilling was first conducted at Windimurra by Hawkstone Minerals during 1972. The Company pegged the current tenements in 1985 and successive RC and diamond drill programs were undertaken on the most prospective ground during the period 1988-1989, culminating in mining operations between 1999 and 2003 developing the existing pit at the Windimurra mine site. Between 2006 and 2007, further infill drilling was undertaken to increase the confidence in the resource base to the north and south of the existing pit, over a total strike length of 6km.

 

Successive mineral resource estimates have been undertaken on completion of each of the drilling phases, culminating in an estimate compiled by Coffey Mining in July 2007 in accordance with the JORC Code. Resource classification was assigned on the basis of geological interpretation, data density and estimate quality. Grade interpolation was undertaken using ordinary kriging techniques based on well defined and domained variography.

2008 has seen a significant improvement in the understanding of the geological controls on mineralisation and metallurgical response of the Windimurra orebody. The drill programs conducted in 2008 have resulted in a significant increase in the mineral resource and ore reserves. The revised mineral resource statement shows a 19% increase in total tonnes compared to that reported in 2007, with a significant improvement in the measured component, resulting in a 20% increase in total contained vanadium metal.

 

 

Table 2: Ore Reserve, December 2008

Classification	Unit	Central Pit	North Pit	South Pit	Combined
Probable
Ore	Mt	11.3	16.6	29.2	57.1
V2O5	%	0.47	0.47	0.48	0.47
Proven
Ore	Mt	36.2	2.8	1.7	40.7
V2O5	%	0.48	0.44	0.49	0.47
Total
Ore	Mt	47.5	19.4	30.9	97.8
V2O5	%	0.47	0.46	0.48	0.47

 

Note: Mineral resources and ore reserves reported utilise a lower cut-off of 0.275% V₂O₅.