Cape Lambert Iron Ore Project

Cape Lambert Iron Ore Limited (“Cape Lambert” or the “Company”) (ASX: CFE, AIM: CLIO) is an Australian iron ore and exploration development company, which owns 100% of the Cape Lambert Iron Ore project (the “Project”), located in the Pilbara region of Western Australia. The Project currently has a 1.56 billion tonne JORC compliant magnetite iron ore resource and is at feasibility stage. Resource drilling continued throughout 2007 with the objective of further increasing the resource to enable the development of a standalone, open pit mining operation capable of producing 15Mtpa of magnetite concentrate.

On 26 February 2008, the Company announced that a Memorandum of Understanding (“MoU”) had been signed with Chinese conglomerate, China Metallurgical Group Corporation (“MCC”) for the sale of the Cape Lambert Iron Ore project.

Under the terms of the MoU, MCC will pay a total consideration of AUD$400 million for the Project land package comprising tenement EL47/1462 and adjacent tenements EL47/1233, EL47/1248 and EL47/1271. The sale excludes Exploration License Application 47/1493, which will be explored separately by Cape Lambert.

MCC has paid a deposit of AUD$10 million, AUD$5 million of which is not non-refundable if it withdraws from the sale. 

To view and download the JORC Resource Upgrade announcement Click Here.

To view and download the February 2008 JORC Resource Report Click Here.