October 07, 2008

Territory Resources to spend AUD 25million on expansion of Frances Creek

Territory Resources announced that it has committed to spend AUD 25 million over the next two years with the aim of substantially expanding its high grade resource base and extend mine life at the Frances Creek iron ore project.

Mr Michael Kiernan chairman of Territory Resources said that the Company was focused on delivering a steady increase in production at Frances Creek, backed by substantial exploration of largely under explored areas. He said that "The immediate focus of exploration is the expansion of near mine reserves and resources including the areas adjacent to the known deposits.”

Mr Kiernan said that "A budget of AUD 12 million including in excess of 100,000m of RC drilling, has been approved for the 2008 calendar year, with three drilling rigs engaged to undertake the works. He said that "The sustainability of exploration drilling during the wet season will be boosted by the introduction of a track mounted RC drilling rig later in the year."

Mr Kiernan said Frances Creek has significant areas that have been largely unexplored by modern techniques, including 12 to 14 kilomater of strike which would be targeted through the current program. He added that "The style of mineralisation in the region tends to be under modest cover and therefore has remained generally unexplored and undiscovered."

Frances Creek currently has 5 million tonnes of reserves @ 61.3% Fe, with indicated and inferred resources of 10.1 million tonnes @ 60.47% Fe.