Magnetite Mines Limited is a mineral exploration company exploring for magnetite - iron ore in South Australia.

Our main focus is the Mawson Iron Project (MIP), a very large magnetite province located 240km NNE of Adelaide, South Australia - 100% owned and operated by Magnetite Mines Limited. The project has a JORC 2004 compliant resource of over 2.7 Billion tonnes (Indicated and Inferred) at the Razorback Ridge Deposit (Razorback) with an additional 1.2 Billion tonnes (Inferred) in the nearby Ironback Hill deposit for a total of 3.9Bt (Indicated and Inferred)1. The MIP occurs in an infrastructure rich area that has access to nearby existing open user rail, port, power, gas, heavy engineering and dormitory towns. Presently a framework agreement (FA) between Magnetite Mines Limited and Lodestone Equities Limited is in place, which sets out the basis for negotiation of the purchase of 100% of Lodestone Equities Limited and it's subsidiaries.

This acquisition would include Lodestone's flagship project - the railway based Olary High Grade Magnetite Project and the infrastructure solutions developed by Braemar Infrastructure Pty. Ltd. (BIPL) placing Magnetite Mines as potentially one of the most significant sources of high quality magnetite concentrates for the global steel industry (see ASX announcement).

Strategy

Magnetite Mines Limited is funded by its shareholders and asset sales. The company's strategy is to pursue mineral commodities, in particular Iron Ore, that it believes can return shareholder value through development into a mining operation. Where project development post exploration is not deemed viable under the company's criteria, the project is sold to enable the company to focus on those that are likely to succeed.

Our strategy has seen Magnetite Mines take control of the Mawson Iron Project while exiting the Pilbara and Mid-West in WA. Via the pending acquisition of Lodestone's Olary Project and Infrastructure solutions (BIPL), Magnetite Mines has begun work on a low-cost, fast-track start-up project at the Olary Deposit which aims to utilise existing ARTC standard gauge railway.

Business Objectives

With the finalisation of resource definition and Pre-feasibility Study at the MIP and pending acquisition of Lodestone Equities' assets, Magnetite Mines Limited objective is to now find a strategic, financing partner to develop it into a large scale magnetite concentrate producer. This will be done by offering direct ownership in the project through funding of the Feasibility Study and committing to debt funding for project construction. Iron ore pricing and, more significantly, views on economic growth and therefore iron ore demand, will impact on Magnetite Mines Limited ability to secure that partner.

Magnetite Mines will continue to pursue other opportunities, including additional magnetite prospects in the MIP and surrounding areas.

Over the next year, Magnetite Mines expects to focus principally on the promotion and financing of the MIP while optimising and progressing low-cost metallurgical and exploration studies via a Narrative and Project Economic Analysis (PEA) with a Detailed Feasibility Study (DFS) thereafter.

  1. The Mineral Resource information for the project was prepared and first disclosed under the JORC Code 2004 and the information has not been updated since to comply with the JORC Code 2012 on the basis the information has not materially changed since it was last reported.