Overview

Iron Ore Holdings Ltd (IOH) was first established in December 2003 and successfully listed on the ASX in May 2005.

During the past several years IOH has progressed its strategy of proving up commercial quantities of Direct Shipping Ore (DSO) on its tenements in the Pilbara region of Western Australia.

Commercial quantities of iron ore were identified at the Phil’s Creek Project following a drilling campaign completed in January 2007.
The Phil’s Creek Project is situated only five kilometres from Rio Tinto HI Yandicoogina mine. Phil’s Creek has a defined JORC Indicated Mineral Resource of:
9.2 Mt at 58.0% Fe, 5.7% SiO2, 3.1% Al2O3, 0.105% P and 7.5% LOI at 55% Fe lower cut-off grade.

In July 2008 the Company entered into a Memorandum of Understanding (MOU) with Rio Tinto for an annual Mine Gate Sale (MGS) of up to 1.5 million tonnes of DSO pisolite from the Phil’s Creek Project.

A Definitive Engineering Study (DES) has commenced with a review of geological and mine planning assumptions. The study is scheduled to be completed by February 2009 and, subject to the necessary Government and regulatory approvals, it is anticipated that mining will commence at Phil’s Creek by the second half of 2010. A formal ore sales agreement is to be negotiated with Rio Tinto prior to commencement.

The commercial arrangements result in a net present value of the Phil’s Creek project of approximately $70million.

The company’s strategy is to continue to explore, prove up and mine commercial quantities of DSO on its tenements in the most prospective parts of the Pilbara region, adjacent to BHP Billiton’s and Rio Tinto’s Yandi and Yandicoogina mines and also Robe River’s Mesa J mine.
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