Magnetite Mines Limited announce that it has secured a 100% interest in the tenement package which hosts the Muster Dam Iron Project. The tenement package was awarded following a competitive application and tender process from the South Australian Department for Energy and Mines. The Company's application outlined its industry experience, managements proven skills, capabilities and the ability to explore and evaluate the tenements. The Muster Dam Iron Project represents an important exploration and development opportunity for the Company. The Muster Dam Project has a range of potential synergies with the Company's Razorback High Grade Iron Project, which is located approximately 110kms to the south west of the proposed tenement. The Company intends to continue to press ahead with its accelerated development pathway for the Razorback
High Grade Iron Ore Project3,4, while evaluating the Muster Dam Iron Project, which has the potential to offer a logical and natural expansion pathway. The Muster Dam Iron Project tenement package consists of a tenement located in the north-east pastoral district of South Australia, roughly 40 km south east of the town of Olary. The tenement which is currently being processed (tenement ID to be determined) includes the iron ore prospects known as Muster Dam, Surrender Dam, Duffields and Peaked Hill. The Muster Dam Iron Project is located near to existing infrastructure, positioned 40km from rail and roads, 75km from the nearest high voltage powerline and 110km from the mining town of Broken Hill. The tenement package has in the past been explored by Minotaur Exploration Limited. In addition to iron ore the tenement has historically been explored for uranium and cobalt mineralisation. Similar to the Razorback High Grade Iron Ore Project, the Muster Dam Iron Project is situated within the folded, Neoproterozoic rocks of the Adelaide Geosyncline. The Braemar Ironstone Formation is the host stratigraphy and comprises a series of narrow, strike extensive magnetite-bearing siltstones with a steep dip of 70-80 degrees. Outcropping in part, mineralisation is mostly covered by sediments with the base of weathering of the prospect ranging from 0 to 50m with aeromagnetic data clearly indicating the lateral continuity of the host ore bodies at shallow depths.