Iron Mountain Mining Limited (ASX Code : IRM) Quarterly Report: 30 September 2012

Transcription

1 31October2012 ASXRelease IronMountainMiningLimited(ASXCode:IRM) WANDOO(Alumina) QuarterlyReport:30September2012 HIGHLIGHTS SaleofWandooProjecttoAlphaBauxitePtyLtdcompletedwithreceiptofA$4,000,000 IronMountainMiningLtdretainsaA$0.75pertonneproductionroyaltyonanybauxiteminedfrom thewandooprojecttenements MIAREE(Magnetite) Total Miaree magnetite resource comprised of Miaree North 29.68% Fe) and Miaree South(109Mt@34.10%Fe) IronOreHoldingsLtdMaitlandRivermagnetiteresourceof1.1Bt@30.4%Fe(ASX4/6/12)totally enclosesmiareesouthprospect DiscussionsforpotentialJointVentureoroutrightsaleongoing GOLDENCAMEL(Gold) Detailed topographical survey of entire site including mining licence boundary, private land and proposeddrillholescompleted Geotechnical, metallurgical and resource definition diamond core drilling program awaiting necessaryapprovalsandexpectedtocommencemidlatenovember2012 EndureEnvironmentalengagedtomanageenvironmentalandculturalheritagerequirements Flora&faunaclearancesurveyundertakenlateOctober BLYTHE(IronOre) ForwardMiningLtdlodgeNoticeofIntentforproposedminingoperationwithStateandFederal authorities Futuremilestonepaymentsandroyaltiessubjecttosuccessfulminedevelopment CORPORATE TakeoverofferforUnitedOrogenLtdclosedon3October2012withIronMountainMiningLtd holding79.12%oftheordinarysharesonissue CompanycurrentlyassessingoptionsinrelationtoitsmajoritystakeinUnitedOrogenLtd

2 General DuringtheSeptember2012Quarter,theWandooSaleAgreementwasfinallyexecutedwiththesigningof licencetransferdocumentsandthereceiptofa$4,000,000.thecompanystillretainsaa$0.75pertonne productionroyaltyoverthewandooprojecttenements.atthemiareemagnetiteproject,amaidenjorc potentialjointventureoroutrightsaleofthemiareeprojectareongoing.atthegoldencamelprojectin Victoria, a detailed topographical survey of the entire site was undertaken including the survey of the tenementboundary,privatelandandproposeddrillholecollarsinreadinessforthecommencementofthe geotechnical, metallurgical and resource definition diamond drilling program in midlate November. At Blythe,ForwardMiningLtdlodgedaNoticeofIntentforaproposedminingoperationwhileattheVicHMS project, preliminary compilation of historical drill hole data was completed. The location of company projectsareshowninfigure1below. Treasure MT ELVIRE Koree Golden Camel HMS WONGAN HILLS WANDOO Figure1 LocationofIronMountainMiningProjectsinAustralia. Page 2 of 15

3 WANDOOPROJECT On 24 August 2012, the company announced that the sale of the Wandoo Project tenements to Alpha BauxitePtyLtdhadbeenexecutedfollowingthereceiptofA$4,000,000.Theexecutiondatehadpreviously beenextendedfrom30june2012to31july2012tofacilitatethecompletionofduediligenceandthen furtherextendedto17august2012followingthereceiptofanoticeofintenttoexecuteandthenagainto 24August2012toaccommodateForeignInvestmentReviewBoard(FIRB)requirements. Following the payment of A$4,000,000, Iron Mountain Mining Ltd retains a royalty of A$0.75 per Dry Metric Tonne on future production of bauxite ore transported from the Wandoo Project tenements payablewithin30daysoftheendofeachquarterlyreportingperiod. AlphaBauxitePtyLtd AlphaBauxiteisaprivatecompanycomprisedofChineseAluminiumIndustryandAustralianinvestorsled bythtfaustraliaminingptyltd( TAM ).TAMisaChinesebackedAustraliancompanywithamandateto identifymineralresourceinvestmentopportunitiesinaustraliaandotheremergingregionsbyleveraging theirinhousetechnicalcapabilitiesandchinesefundingtoinvestinoracquirekeyminingandexploration assetsforexpediteddevelopment.thechineseshareholdersoftamincludehongkongthtfco.ltd(part ofthethtfgroup),chengdurolarinvestmentltd(aprivatemultiplebusiness)andhainanminingco.ltd (controlled by the Fosun Group). TAM is working in partnership with a Chinese aluminium industry companyinterestedinsecuringasafelongtermsupplyofbauxite. WandooBauxiteResources TotalInferredResourcesofbauxiteatWandooremainunchangedat89.3Mt@41.75%Al2O3.Asummary ofthetotalinferredresourceforthewandoobauxiteprojectisprovidedintable1below. WandooProject Tonnes Mt TotalAl 2 O 3 (%) Available Al 2 O 3 (%) Soluble SiO 2 * (%) LOI (%) TOTALINFERREDMINERALRESOURCE *SolubleSiO 2 =ReactiveSilica Table1 DetailsofWandooProjectTotalInferredResourceEstimateat30%AvailableAl 2 O 3 cutoff MIAREEPROJECT TheMiareeProjectiscurrentlycomprisedof3explorationlicenses(E08/1350,E47/1309&E47/1707)and cover approximately 25km of the Miaree Magnetite Trend that occurs within the extensive Cleverville Formation,ageologicalunitofbandedironformationrichinmagnetite(eg.1.6BtCapeLambertmagnetite deposit).theprojecttenementsarecurrentlyheldunderajointventurebetweenironmountainandred RiverwherebyIronMountainhadanoptiontoearnupto70%oftheprojectbysatisfyingthreeearnin stages with clearly defined timing and expenditure requirements. After surpassing Stage 2 expenditure milestonesinthedecember2011quarterandliftingitsequitystakeinthe MiareeProjectfrom25%to 49%,thecompanyelectednottoprogressto70%bycommittingtosolefundafurther$2,000,000.Instead, the company opted to continue under the noncontributory dilution provisions in the joint venture agreement.asat30september2012,ironmountain sequityinthemiareeprojectwas60.25%. Page 3 of 15

4 MIAREEMAGNETITEPROJECT On13August2012,thecompanyannouncedamaidenmagnetiteresourcefortheMiareeProjectbasedon two separate programs of reverse circulation drilling undertaken in 2008 and The 2008 drilling program was much shallower in nature and predominantly focused on the northeastern project tenements(e47/1309&e47/1707).the2012drillingprogramwasfocussedsolelyonthesouthwestern projecttenement(e08/350)withtheaverageholedepthalmostfourtimesthatofthe2008program(refer Table2) Resource ModelData Drilling Type No.of Holes Total Metres Average Depth(m) Vertical Projection 2008 RC RL 2012 RC RL Table2 Summaryof2008&2012reversecirculationdrillingdatausedinresourceestimationmodels Giventhedifferencesindrillingdensities,depthsandtargetsbetweenthe2008and2012drillingprograms andbecausetherewasnooverlap,itwasdeterminedthatbothdatabasesremainseparateandindividual resourceestimationsbecalculatedforeachdrillingdataset. MiareeMagnetiteResource A summary of the Total Miaree Magnetite Inferred Resource as estimated by independent resource consultantshackman&associatesptyltdisprovidedintable3below. Drilling Tenements Inferred Resource (Mt) Fe (%) Al 2 O 3 (%) E08/1350,E47/1309&E47/ E08/ SiO 2 (%) P (%) LOI (%) Cutoff Fe (%) TOTALMIAREEINFERREDRESOURCE RCholesfor4229m,Av.Depth=88m,Verticalresourceprojectionto125RL 26RCholesfor2102m,Av.Depth=350m,Verticalresourceprojectionto325RL Table3 SummaryoftheTotalMiareeMagnetiteInferredMineralResourceata25%Feheadgrade cutoff The2012drillingprogram(6RCholesfor2102m)wasdesignedtotestthesouthwesternextensionofa prominent aeromagnetic anomaly that hosts Iron Ore Holdings Ltd (ASX: IOH) Maitland River Magnetite Resourceof1.1Bt@30.4%Fe(ASX4June2012)whichincludesAreaA(190Mt@28.3%Fe)andAreaB (811Mt@31.0%Fe)alongstriketothesouthwestandnortheastofE08/1350respectively(seeFig.2).The Area B resource is to be the subject of a conceptual study by Iron Ore Holdings Ltd to determine the technicalfeasibilityofestablishingamagnetiteoperation. Page 4 of 15

5 Iron Ore Holdings Ltd Area A Resource 28.3% Fe (ASX 4/6/12) Iron Ore Holdings Ltd Area B Resource 31.0% Fe (ASX 4/6/12) E47/1537 2km Iron Mountain Mining Ltd Miaree South Resource 34.1% Fe (ASX 13/8/12) Figure2 MiareeSouthdrillingareawithinE08/1350showinglocationofMiareeSouthResourceand MaitlandAreaA&AreaBresources(IronOreHoldingsLtd,ASX4June2012) ThesizeandlocationofthesurroundingMaitlandRiverAreaA&Bresourcessuggeststhereisscopefor the magnetite mineralisation to extend through E08/1350 as one continuous magnetite orebody. The aeromagneticresponserevealsthereisapproximately2kmstrikelengthofwhichlessthan1kmwastested aspartofthemiareesouthdrillingprogram. Inadditiontotheprojectbeinglocated10kmfromthecoast,30kmfromKarrathaontheNorthwestCoast Highway and 70km from the planned Anketell port, the Miaree Project tenements and contained magnetiteresourcesarestrategicallypositionedwithinironoreholdingsltdmaitlandriverprojectover whichfortescuemetalsgroupltd(fmg)hasanoptiontofarminto50%ofironoreholdingsltdmaitland River Project by 31 March 2013 (see Fig.3). The company is currently in the process of evaluating expressionsofinterestwithaviewtoapotentialjointventureoroutrightsaleoftheproject. Page 5 of 15

6 Iron Ore Holdings Ltd Area B Resource 31.0% Fe (ASX 6 June 2012) E08/1350 E47/1537 E47/2372 IRM/RVR 2012 Drilling Miaree Magnetite Resource 34.1% Fe IRM/RVR 2008 Drilling Miaree Magnetite Resource 29.7% Fe E47/1309 E47/1707 Iron Ore Holdings Ltd Maitland River Magnetite Resource 30.4% Fe (ASX 6 June 2012) E47/1309 Magnetite Banded Iron Formation Maitland Project (IOH) Miaree Project (IRM/RVR) Miaree Project Tenements & Reported Resources Location Plan Figure3 PlandepictinglocationofMiareeProjecttenementsandreportedmagnetiteresources MIAREEEGOLDPROJECT TheMiareeGoldProjectiscontainedprimarilylocatedwithintenementE47/1309.Multipleprospectareas haveregularlyreturnedhighgoldgradesfromgeochemical,rockchipandcosteansampling.twophasesof drilling in the past targeting a variety of structural models have been disappointing suggesting that the controlsonmineralisationarenotyetfullyunderstoodandfurtherevaluationisrequired. Duringthequarter,noworkwasundertakenontheMiareeGoldProject. GOLDENCAMELPROJECT The Golden Camel Project in Victoria is comprised of Mining Licence MIN5548 that was granted on 9 February2012.MIN5548islocatedontheMtCamelRangewithintheHeathcoteGreenstoneBeltinNorth Central Victoria and contains the Cornella gold deposit that was previously delineated within former MIN4149(seeFig.4). On7July2012,thecompanyannouncedamaidenIndicated&Inferredresourceof246,000t@2.5g/tAu (19,700oz)thatwasestimatedbyindependentresourceconsultantZurkicMiningConsultantsPtyLtdwho had been engaged as Resource Estimation and Project Management consultants for the Golden Camel Project(seeTable4). Page 6 of 15

7 N Tavistock Rd MIN5548 HeathcoteGreenstoneBelt Heathcote - Rochester Rd Approximatelocationof GoldenCamelResource Myola Rd Lower Cutoff Grade (g/tau) Figure4 LocationofGoldenCamelresourcewithinMIN5548overHeathcoteGreenstoneBelt Tonnes (t) INDICATED INFERRED TOTAL Grade (g/tau) Contained Gold (oz) Tonnes (t) Grade (g/tau) Contained Gold (oz) Tonnes (t) Grade (g/tau) Contained Gold (oz) , , , , , ,700 Table4 DetailsoftheGoldenCamelIndicated&InferredMineralResourceat1.0g/t cut-off Thecompanyiscurrentlyintheprocessofundertakingnecessarytechnical, metallurgicalandeconomic evaluationofthegoldencameldepositunderaproposedtolltreatmentmodeltodeterminewhetherthe projectsatisfiescommercialdevelopmentrequirements.on2august2012,adetailedsurveyofmin5548 andsurroundswascompletedtoverifyhistoricaldataaswellasprovideaccurateanduptodatesurvey dataforfutureresourceandprojectdevelopmentmodelling(seefig.5).thedetailedsurveyincluded: MIN5548licenceboundary Sitetopography Privateland Proposeddrillholecollars Fences,roadreserve,road Page 7 of 15

8 Figure5 Mininglicenceboundary,topography,privateland,roadreserve andproposeddrillholecollarsurveyformin5548 Page 8 of 15

9 Duringthequarter,thecompanywasgrantedconsentforexplorationonlyactivitieswithinMIN5548fora periodoftwoyearswhichwillexpireon20august2014.thismorethanadequatelycoverstheproposed geotechnical,metallurgicalandresourceinfilldrillingprogramcontainedintheworkplansubmittedinthe previous quarter that is considered critical for the technical evaluation of the project and subsequent economicfeasibilitystudy. Theproposeddrillingprogramconsistsof8holesforatotalof495mandprovidedallnecessaryapprovals are obtained, is currently expected to commence midlate November 2012 with contingencies to defer untillatejanuary2013ifapprovalsandaccesstocontractorsisdelayed.theproposedholesinclude: 2geotechnicalholes(180m)drilledorientatedHQtripletubediamondcore 2metallurgicalholes(75m)drilledHQorNQtripletubediamondcore 4resourcedefinitionholes(240m)drilledHQorNQtripletubediamondcore Itisexpectedthatoneoftheproposedverticalmetallurgicalholeswillbedriller1020mdeeperthanits anticipatedplanneddepthtoextendbeyondtheflooroftheexpectedopenpitdesigntoalsobeusedasa groundwaterassessmentandmonitoringbore.theplanneddrillingprogramistobedrilledalltripletube diamondcoretoovercomethebrecciatednatureofthecherthostedorezonesandtoexploittheaccess capabilitiesofatrackmounteddiamondonlydrillingrig.privatelandaccesshasbeenobtainedandsite visits with potential drilling contractors conducted to expedite the commencement of drilling once all necessaryapprovalshavebeenreceived. InearlyOctober2012,thecompanyengagedenvironmentalconsultancyEndureEnvironmentaltomanage all environmental and cultural heritage requirements for the Golden Camel Project. A flora and fauna review of MIN5548 with particular focus on areas of anticipated disturbance was scheduled to be undertaken byabotanistandzoologistinlate Octoberwithresultsexpectedin thecomingmonth.the company also submitted an Application for Advice to Aboriginal Affairs Victoria as part of the cultural assessment and clearance requirements and subsequently received an Aboriginal Heritage Certificate confirmingthatthereisnorecordedaboriginalsitewithin340mofthemin5548licenceboundary. Given its near surface mineralisation, favourable location and current gold prices, ongoing evaluation suggeststhattheprojectcouldbesufficientlyrobusttodeliverapositivenpvatcurrentgoldpricesunder anoredeliveryortolltreatmentscenario.thecompanyisprogressingdiscussionswithallstakeholdersand willannouncefurtherdevelopmentsastheyoccur. BLYTHEPROJECT Following the sale of the Blythe Project in the previous quarter under mutually agreed restructured payment terms (ASX 27 June 2012), Forward Mining Ltd has made considerable progress towards their plansofestablishinganironoreminingandproductionfacilityinthenorthwestoftasmania. Page 9 of 15

10 On10October2012,TheAdvocatenewspaperinTasmaniareportedthatForwardMiningLtdhadlodgeda NoticeofIntentforaproposedminingoperationwithbothstateandfederalregulatoryauthorities.Known astherogettaproject,thepotentialmineandmillsiteislocatedapproximately30kmsouthofburnieand would involve extracting and refining iron ore and transporting it to Burnie by road or rail for export. According to the Notice of Intent, the proposed operations would include an open pit mine, a processingplant,wasterockstorage,tailingsstorage,water,accessroadsandpowerinfrastructure.the totaldevelopmentfootprintwouldbe148hectares. In accordance with flora and fauna assessment guidelines, the contents of the proposal will now be considered under both the federal Environment Protection and Biodiversity Conservation Act and the Tasmanian Environmental Protection Authority. The approval process will also require transparent and ongoing stakeholder engagement with groups likely to include relevant councils, state authorities, local environmentalgroups,landowners,communitymembersandutilityproviders. UndertheamendedBlythesaleagreement,thefollowingconsiderationispayabletotheprevious50:50 ProjectJointVenturepartnersIronMountainMiningLtdandRedRiverResourcesLtdunderthefollowing restructuredmilestones: Payment of A$1,000,000 upon the first shipment of iron ore extracted from the Blythe Project tenements PaymentofA$2,000,000uponthefirstanniversaryofthefirstshipmentofironoreextractedfrom theblytheprojecttenements Payment of A$2,000,000 upon the second anniversary of the first shipment of iron ore extracted fromtheblytheprojecttenements Aroyaltyof1.5%payableonthegrossFreeonBoardrevenuefromallshipmentsofironorefrom theblythetenements The company is impressed by the progress of Forward Mining Ltd at Blythe and are confident that the ProjecthasthepotentialtobecommerciallydevelopedbyForwardMiningLtdresultinginstrongpayment andrevenuestreamsforallinvolved.futureupdatesonthestatusoftheblytheprojectwillbeannounced asprovidedbyforwardminingltd. MOUNTRICHARDSONPROJECT CliffsAsiaPacificIronOrePtyLtd( Cliffs )istheownerofe29/571followingfinalisationofthesaleofthe MtRichardsonProjecton13July2010.IronMountainretainsaroyaltyof2%onaverage/tonneFOBsales valueofironoreproductthatdepartse29/571aswellasaoneoffpaymentofaud0.50perdrymetric tonneontonnagesinexcessofindependentlyevaluatedindicatedormeasuredresourcesof10,000,000 tonnes. NoupdatewasreceivedontheprogressatMtRichardsonfortheSeptember2012quarter.Futureupdates onthestatusofthemtrichardsonprojectwillbeannouncedasprovidedbycliffs. Page 10 of 15

11 WONGANHILLSPROJECT TheWonganHillsProjectiscomprisedofexplorationlicenceE70/2728immediatelywestofWonganHills inthearchaeanyilgarnironoreprovinceofwesternaustralia.kingsgateconsolidatedltd( Kingsgate, ASX:KCN)arethecurrentoperatorsfollowingtheacquisitionofDominionMiningLtdwhohadpreviously earnedan80%interestinthewonganwestjointventurebysatisfyingrequiredexpenditurerequirements (ASX28Aug2009).ThemajorityoftheWonganWestJVissubjecttoafarminagreementwithRedRiver Resources Limited and Iron Mountain under which Kingsgate has earned an 80% interest. The equity interestsofredriverandironmountainine70/2728havebeenreducedto15%contributingand5%free carriedrespectively. ApartfromaninternalreviewofallgeologicaldatacompletedbyKingsgate,noworkwasreportedforthe June2012quarter. TREASUREJV TheTreasureProspectiscomprisedofEL25346covering101km2andiscurrentlysubjecttoaJointVenture AgreementwithMithrilResourcesLtd( Mithril )announcedon30september2008wherebymithrilcan earn60%inel25346bespending$1moverthefirstthreeyears(stage1)andafurther20%byspendingan additional$1moverthefollowing2years(stage2).ironmountaincanbereducedto40%shouldmithril exercisestage1(60%farmin)or20%shouldmithrilexercisestage2(80%farmin).theprojectislocated approximately130kmnortheastofalicespringsinthenorthernterritoryandiscurrentlybeingmanaged bymithrilunderthetermsofthejvagreement. On 4 September, the Stage 2 farmin period for Mithril to earn 80% of EL25346 expired. Mithril subsequentlyadvisedthecompanyoftheirintentiontowithdrawfromthetreasurejvastheyhadnotmet the$1mexpenditurerequiredbythe4septemberdeadline.ironmountainminingltdiscurrentlyseeking expressionsofinterestfromoperatorsintheregionforajointventureoroutrightsaleofel25346which hoststheadvancedbaldrickprospect. NofieldworkwascompletedbyMithrilonEL25346duringtheSeptember2012quarter.Allexploration dataaccumulatedbymithrilwasintheprocessofbeingcompiledandreturnedtoironmountainmining. HMSPROJECT The HMS Project is comprised of 5 granted exploration licences covering 550km2 over 5 known heavy mineralsand(hms)depositswithinthemurraybasininwesternvictoria.themurraybasincoversnorth Western Victoria, South Western New South Wales and South Eastern South Australia and is a prolific producerofheavymineralsands.ilukaresourcesltd,currentlythelargestproducerofzirconintheworld, operateshmsminesinvictoriaaswellasamineralseparationplantinhamilton,westernvictoria(see Fig.6). Page 11 of 15

12 MONTROSE HARROW Douglas (Iluka) NATHAM WIM150 EXT Echo (Iluka) WIM % HM MACKENZIE Figure6 VictorianHMSprojectshowingprojecttenure(yellow),WIMstyledeposits(lightblue)and locationofilukadouglasandechomineralsandmines During the quarter, the company resumed the review, verification and evaluation of the enormous historicalhmsdatabase.thecompileddatabaseofhistoricaldrillingfromallavailableopenfilesources wascombinedwithtenementboundaryshapefilestodeterminethequantityandtypeofhistoricaldrilling that had been undertaken within the 5 granted exploration licences of the HMS Project. A total of 297 historicaldrillholesforatotalof5167m(averagedepth17.4m)wereidentifiedwithinprojectexploration licences ,5307&5356(seetable5).theholesinquestionweredrilledbetween1939and2010 andwereextractedfromtwoseparatedsources: 1. DepartmentofPrimaryIndustriesdrillingdatabase( ) 2. Companyannualreports( ) HMSDeposit Tenement DatesDrilled DrillHoles TotalMetres Harrow EL Montrose EL Natham EL NathamWest EL WIM150Ext EL TOTAL Table5 DistributionofhistoricaldrillholesidentifiedwithinHMSprojecttenements Page 12 of 15

13 Given the significant difference in reporting detail and data quality between the two sources of information,itwasdecidedtokeepthetwodatabasesseparateandnotmergethemintoasingledatafile. For ease of identification, the DPI database drill hole collar locations were colour coded blue and the companyannualreportdatabasedrillholecollarswerecolourcodedred.thehistoricaldrillingidentified within current tenement shape files were then overlain on available Digital Elevation Model (DEM) data (seefigures7&8). EL5356 EL5307 Figure7 VicHMStenementsEL5307(Harrow)andEL5356(Montrose)withhistoricaldrillingoverDEM PreliminaryreviewofthecompiledhistoricaldrillingdatarevealsthattheHMProjecttenementscontaina predominanceofpreͳ2008(blue)historicaldrillholes.earlystageprospectprioritisationhasidentifiedthe Montrose HMS deposit contained within EL5356 as the prospective and advanced of the 5 targets. This companyassessmentisconfirmedbythehigherproportionofpostͳ2008historicaldrillingcontainedwithin the boundaries of EL5356. Assessment and evaluation is ongoing with the aim of delineating advanced prioritytargetsandcomplimentaryexplorationprograms. As well as continuing work on compiling and validating the enormous historical database, the company intendstoresumediscussionsforapotentialjointventurebyrevisitingpreviousexpressionsofinterest. Thecompanyhopestoestablishamutuallybeneficialagreementwithatechnicallyexperiencedoperator thatwillallowtheexpeditedexplorationandpotentialdevelopmentoftheproject. Page 13 of 15

14 EL5305 EL5304 EL5303 WIM150 Figure8 VicHMStenementsEL5304(NathamWest),EL5303(NathamͲMackenzie)andEL5305 (WIM150Ext)withhistoricaldrillingoverDEMandlocationofWIM150deposit MTELVIREPROJECT The Mt Elvire Project is comprised of a single exploration licence covering 12km2 located south of Port Hedland in Western Australia. The area is considered prospective for channel iron ore accumulations similarinnaturetotheyandideposit(riotinto)aswellasfordetritalironoredepositsandwaspartofa competing application over the same ground highlighting the level of competitor interest in the area. Assessment and evaluation of the Mt Elvire Project is ongoing to determine necessary exploration to be undertakenwithinrestrictedseasonalwindowsofopportunity.nofieldworkwasundertakenatmtelvire duringtheseptember2012quarter. MACQUARIEMARBLEANDLIMEPTYLTD(KOREELIMESTONE) IronMountainhasa60%interestinMacquarieMarbleandLimePtywhichistheregisteredholderofML 1446 in New South Wales. During the quarter, the company commenced surrender proceedings for ML1446 after being unable to divest the asset as tenure for future development. A site meeting was attended by the NSW Department of Resources and Energy and an environmental consultancy to assess thestatusofthesitewithaviewtodeterminingtherequirementsforarehabilitationmineoperationplan tobedraftedandsubmitted. Page 14 of 15

15 CORPORATE Asnotedinthepreviousquarterlyreport,thecompanyannounceditsintentiontomakeanoffmarketbid for all of the shares and options in United Orogen Ltd (ASX 6 July 2012). A Notice of Variation was subsequently lodged with the ASX on 30 August 2012 extending the acceptance deadline from 7.00pm (AWST)on7September2012to7.00pm(AWST)on3October2012.TheOfferthenbecameunconditional on21september2012whenthecompanyannouncedthatithadwaivedallofthedefeatingconditions. Atthecloseoftheofferon3October2012,IronMountainMiningLtdheld86,099,288ordinarysharesin UnitedOrogenLtdrepresenting79.12%ofthe108,825,946totalordinarysharesonissuewhichwasshort ofthe90%requiredtotriggercompulsoryacquisition.thecompanyiscurrentlyassessingavailableoptions inrelationtoitsmajoritystakeinunitedorogenltd. RobertSebek ManagingDirector 31October2012 TheinformationwithinthisreportasitrelatestogeologyandmineralresourceswascompiledbytheManagingDirector,MrRobert Sebek.MrSebekisaMemberoftheAustralianInstituteofMiningandMetallurgy.Mr.Sebekhassufficientexperiencewhichis relevanttothestyleofmineralizationandthetypeofdepositunderconsiderationtoqualifyasacompetentpersonasdefinedin the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code. Mr Sebek is employed by Iron Mountain Mining Ltd and consents to the inclusion in the report of thematters based on informationintheformandcontextwhichitappears. Page 15 of 15