The Company has a major exploration program targeting iron ore in the Wheatbelt and Yilgarn of Western Australia. The project comprises of 14 exploration licence applications located at Pingaring, Kukerin, Bencubbin, Ullarring, Brontie, Burngup, Wongan Hills, Balladonia, Dalwallinu, Southdown, Goomalling; four tenements have been granted at Illaara, Koolyanobbing, Bencubbin and Southdown Extension. The 13 projects extend over 3,184 square kilometres.
The projects are in close proximity to Western Australian rail networks and other infrastructure. The exploration targets are magnetite contained wtihin the Archaean magnetite/banded iron formation units.
During the year, the Company signed a MOU with a Chinese exploration bureau, Anhui Lianghuai Pty Ltd, a wholly owned subsidiary of the Anhui Provincial Bureau of Coal and Geology. The MOU follows a series of due diligence and discussions, including a number of visits by AMMG to the Anhui head office in Hefei, and a number of trips by Anhui to AMMG's WA-based projects.
The MOU provides both parties with the framework to negotiate potential terms of direct capital investment by way of a share placement in AMMG or its subsidiary, Yilgarn Iron Pty Ltd. The MOU further supports a potential Heads of Agreement for a joint venture agreement for the development of the Yilgarn Iron Ore project.
A trip to Anhui's head office in Hefei in November 2011 resulted in a further MOU signing between both parties to include AMMG's Southdown Extension project, which is strategically located approximately 80kms from the port and town of Albany.
AMMG has planned its drill program to commence in early 2012, which will test the width of the magnetite mineralisation and also determine the economic depth extent.
AMMG was successful in its submission to the Royalties for Regions' Exploration Incentive Scheme (EIS) co-funded program at its Bencubbin project. The planned drilling program is scheduled to commence in early 2012.
Yilgarn Iron Ore Project Map
Southdown Extension Project, WA