FairStar Resources Provides Steeple Hill Iron Project Update

Australian multi-commodity exploration and development company FairStar Resources is pleased to provide the following update on its Steeple Hill Iron Project in Western Australia’s eastern goldfields.

FairStar advises that its comprehensive resofly ash processing equipment from chinaurce definition drill program at Steeple Hill has been completed.

FairStar further advises that all assays have now been completed. FairStar has submitted all data to Australian Mining Consultants (FairStar’s independent consultants) for calculation of FairStar’s maiden JORC-compliant Resource at the Steeple Hill project in the very near future.

Due to the highly prospective nature of the project and the continuity of mineralisation encountered throughout the ore body, the drill program at Steeple Hill was expanded by the addition of 200 holes.

The resource definition drill program has drilled 450 holes for a total of 4,204 metres. The additional holes were drilled at targets situated in the southern region of the project, which still remains open in the south.

A trenching program of 145 trenches has also been completed. FairStar is presently focusing on developing an alluvial iron project at Steeple Hill. This will accelerate the development timeframe of the project due to the low extraction cost, increased speed of mining and ease of treatment (in comparison to hard rock mining).

FairStar’s goal is to fastrack the development of the Steeple Hill Iron Project so as to become an economic producer of export grade hematite.

FairStar has completed an ethno-graphic survey and noise survey at the project. An environmental survey of the project is currently being conducted and is due for completion in October. The Company also advises that native title negotiations are well advanced and that it expects a positive outcome in the near term.

Infrastructure developments are also in progress, and rail and sea-bound transport corridors have been established. In addition, site infrastructure and other required licenses are currently being addressed.

Next phase of drilling

Post the delineation of the upcoming JORC Resource, FairStar plans to embark on its next phase of drilling, of up to a further 100 holes, to expand the project and to provide a more thorough understanding of the mineral extent of the ore body, particularly in the southern portion of Steeple Hill where it remains open.

FairStar Resources managing director Kevin Robertson said: “We are delighted with the continued rapid progress the Company is making toward its goal of becoming a successful junior iron ore miner. We look forward to providing details of the maiden JORC Resource at the Steeple Hill project in the near future, and then commencing our next stage of drilling to expand the project further.”

Discussion with potential project investor and off take partners

The Company also advises that it has commenced discussions with a number of Chinese groups and other interest parties from Asia in relation to securing project funding for the development of the Steeple Hill project, as well as potential off take arrangements and equity investment in the Company.

FairStar will advise the market on the progression and development of these discussions in due course.