31 January 2007 ASX ANNOUNCEMENT. Mt Thirsty Cobalt-Nickel Joint Venture Infill Drilling Results The Company is pleased to announce results of infill drilling at the Mt Thirsty Cobalt Nickel Project, strategically located 20 kilometres north-northwest of Norseman, Western Australia (see Figure 1). Barra Resources Ltd ( Barra ) recently entered into a 50/50 joint venture with private company Select Minerals Ltd ( Select ), holder of the high grade Mt Thirsty Cobalt- Nickel Deposit. Results comprise: 74 metres grading 0.3% Cobalt and 1.0% Nickel (including 11 metres grading 1.1% Cobalt and 1.3% Nickel) Infill Drilling Results 13 metres grading 0.2% Cobalt and 1.1% Nickel 13 metres grading 0.4% Cobalt and 1.1% Nickel 19 metres grading 0.4% Cobalt and 0.8% Nickel (including 4 metres grading 1.0% Cobalt and 1.5% Nickel) 6 metres grading 0.7% Cobalt and 1.1% Nickel Drilling was undertaken late 2006 to evaluate the reliability of previous holes completed by Resolute Limited during 1996 and 1997. The objective of the program was to infill previous drilling, drill deeper holes where previous holes ended in mineralisation and to provide representative samples for metallurgical testwork. Results are presented in Table 1. The program was highly successful showing excellent geological and assay continuity between Barra s holes and Resolute s previous holes. Intersections are virtually true width as all holes were drilled vertically into the near horizontal blanket like ore zone. Mineralisation was substantially thicker in those parts of the deposit tested where Resolute s drilling stopped in ore (see Figure 3). Further areas require depth extensional drilling. Results from current metallurgical testwork are expected this quarter and will be utilized to set parameters for the existing pilot plant testing facility. Barra Resources Limited (ABN 86 093 396 859) Mercury House, Level 3, 33 Richardson Street, West Perth, Western Australia 6005 Telephone: (08) 9481 3911 Facsimile: (08) 9481 3955
Table 1: Mt Thirsty Significant Aircore Drill Intersections Mt Thirsty Significant Aircore Drill Intersections Hole North East Dip/Az From To Width Cobalt Nickel (m) (m) (m) (%) (%) MTAC001 6447600 372320 vertical 0 1 1 0.26 0.47 11 50 39 0.12 0.81 MTAC002 6447600 372080 vertical 43 53 10 0.11 0.45 MTAC003 6447300 372130 vertical 29 43 14 0.26 0.52 MTAC004* 6447450 372130 vertical 18 92 74 0.28 0.97 Including 19 30 11 1.04 1.25 and 67 92 25 0.13 1.21 MTAC005 6447500 372165 vertical 14 59 45 0.24 0.81 Including 17 21 4 0.71 0.93 and 41 54 13 0.23 1.14 MTAC006 6447500 372240 vertical 8 22 14 0.40 0.72 Including 9 16 7 0.64 0.80 MTAC007 6447400 372210 vertical 16 32 16 0.33 0.70 Including 16 20 4 0.87 0.98 MTAC008 6447400 372250 vertical 10 29 19 0.37 0.84 Including 11 15 4 1.04 1.52 MTAC009* 6447400 372350 vertical 5 18 13 0.37 1.09 MTAC010* 6447300 372370 vertical 8 20 12 0.08 0.95 Including 8 13 5 0.14 1.07 MTAC011 6447150 372090 vertical 26 45 19 0.37 0.69 MTAC012 Including 38 44 6 0.71 1.12 6446900 372300 vertical 32 69 37 0.20 0.72 MTAC013* Including 57 66 9 0.25 1.06 6446900 372100 vertical 39 63.5 24.5 0.23 0.56 Note: * denotes hole ending in mineralisation Yours sincerely Dean Goodwin Managing Director Barra Resources Ltd The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dean Goodwin who is a Member of the Australian Institute of Geoscientists. Dean Goodwin is a full-time employee of the Company. Dean Goodwin has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2005 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dean Goodwin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Background on the Mt Thirsty Cobalt Nickel Project Highlights of the Project are: The high grade presence of cobalt is up to 8 times greater than other nickel-cobalt operations where cobalt is a by-product. Based on present metallurgical recovery rates, the total inferred and indicated resource produces approximately 13,000 tonnes of cobalt metal and 27,000 tonnes of nickel metal. The mineralogy of the deposit allows rapid high leaching recoveries (80% cobalt/50% nickel) at room temperature and normal atmospheric pressure utilizing weak acidic reagents. Advanced metallurgical testwork at finer grind sizes, currently underway, is expected to increase nickel recoveries significantly. Low mining costs are anticipated due to the soft nature of the deposit, its thin overburden and shallow depth. Relatively low capital costs of treatment plant construction estimated at between 60-80 million dollars. All metallurgical operations envisaged within the treatment process exist and have been operating in other processes worldwide over many years. No new technology is required; a combination of time-proven technologies will form the basis of the treatment plant. The end concentrate is a simple product highly amenable to world smelters. Existing resource is currently open along strike with scope for significant expansion. The Project is within 4 kilometres of existing infrastructure including road, rail, water and gas pipelines with ready access to the deep sea export port of Esperance. Extent of Current Resource The Project contains an existing JORC compliant internal high grade indicated cobalt and nickel oxide resource of 700,000 tonnes grading 0.50% cobalt and 1.20% nickel within a much larger inferred and indicated envelope of 8.4 million tonnes grading 0.20% cobalt and 0.65% nickel. Barra infill drilling has confirmed the continuity of this resource. Resources are currently open along strike. The soft nature of the ore profile renders conversion of inferred and indicated resources to mineable reserves at relatively low cost and will result in lower mining costs. Extraction Process The mineralogical characteristics of the deposit allow for a rapid leaching technique at room temperature and normal atmospheric pressure utilizing an extraction process using acidic reagents. The extraction process relies on a sulphite leaching process able to extract nickel, cobalt and manganese metals from highly oxidized limonites at atmospheric temperature and pressure. These processes are extensively used in the electrolytic manganese dioxide industry and have been specifically refined by Select s Managing Director, Mr Jack Andreazza (BSc FAusIMM) in conjunction with Murdoch University and CSIRO to be used on ore from the Mt Thirsty deposit. The envisaged extraction process is also similar to two successful oxide cobalt and nickel mining operations in Southern Africa.
Figure 1: Mt Thirsty Project Location
Figure 2: Mt Thirsty Drill Hole Location Plan
Figure 3: Mt Thirsty Cross Section 6447450