Strategic Minerals plc (AIM: SML) is a UK registered resources company focused on  development and supply of magnetite to the world’s industrial markets. Quoted on the London Stock Exchange’s AIM market, the Company is currently developing a portfolio of production ready magnetite stockpiles that generate significant early revenues, as well as a number of significant upside iron ore exploration projects that the Company will typically progress to a JORC status. 

The first of the Company’s stockpile projects is the Cobre stockpile in New Mexico, USA. The Company likewise holds multiple exploration tenements across Australia, with its most advanced exploration project being the Iron Glen project in Queensland.

Cross section core mineralization

Stockpiles of magnetite typically occur as a result of mining operations discarding mined magnetite ore when mining for other commodities. Strategic Minerals is currently acquiring a pipeline of production-ready magnetite stockpiles and other near term production mineral deposits where it is confident they can be economically put into production in the near term.

The Cobre Stockpile in New Mexico  

As a result of the Ebony Iron acquisition, Strategic Minerals has secured the right to commercialise its first stockpile, the Cobre stockpile. The Cobre Stockpile is located at the Freeport McMoRan (Freeport) Cobre mine in New Mexico, USA.  

A JORC compliant resource of 1.57 million metric tonnes of magnetite ore has been estimated for the stockpile, having an average grade of 61.7 % Fe.

The Company is currently re-instating the rail-links to the stockpile at the site and anticipates moving into production in Q1 2012.

EXPLORATION 

The Company has a number of exploration sites in close proximity to known iron ore resources. The Company expects to develop its exploration projects to a JORC status before considering the decision to mine.

Strategic Minerals currently holds a portfolio of tenements in Australia.

•  Iron Glen – Queensland;

•  The Hodgson and Roper River region tenements in the Northern Territory;

•  The Jotanooka and Dragon Rocks tenements in Western Australia.

Queensland -The Iron Glen Tenement

The Iron Glen Tenement is located approximately 40km from the deep water port of Townsville, Queensland, and is close to existing road and rail infrastructure. Within a well recognised mining region, areas of the 2,100 hectare tenement have been subject to extensive magnetic and geochemical analysis since 2007, there having been an operational magnetite mine on the site until the mid 1960’s.

The Company is currently advancing a 30 hole+ drilling programme – initial assay results of sample chips having indicated the presence of Lead, Silver, Copper and Zinc in the Lead Belly region of the tenement in addition to magnetite.

The Company has application for an additional 9,000 hectares (30 sub-blocks) adjacent to the tenement.

Northern Territory

The company holds agreements in principle to procure the three tenements and one application spanning some 6,221km2.

The tenements in the Hodgson and Roper River region are considered to be prospective iron rich sedimentary units of the Proterozoic  McArthur Basin that are partly overlain by sandstone, mudstone and limestone units of the Cretaceous Carpentaria Basin.

Jotanooka, Western Australia

The Company holds an agreement in principle to procure the three tenements in the Jotanooka region. The northern most Jotanooka tenement contains a strong magnetic anomaly believed to be the northern most strike extent of the banded iron formation forming the main area of iron ore at Koolunooka. The aeromagnetic anomaly of interest is situated in an area of shallow soil cover and requires drilling to confirm the presence and nature of the magnetic anomaly.

Dragon Rocks, Western Australia

The Company holds an agreement in principle to procure the tenement in the Dragon Rocks region.

The Dragon Rocks tenement holds continuous coverage of over 20km of strong aeromagnetic anomalies related to a banded iron formation and amphibolite rocks in the Hyden region.

The area is considered prospective for magnetite hosted within high grade metamorphic rocks.

The shareholders set out below hold greater than 3% of the issued share capital:

* Walter Doyle is the sole director and shareholder of Half Shell Holdings Limited and has agreed to underwrite the
Placing.
** In addition to the Ordinary Shares held by Mr. Knifton, he also holds Warrants to subscribe for up to 23,369,988
Ordinary Shares, details of which are summarised in paragraph 4.5 above.
*** In addition to the Ordinary Shares held by Mr. Felix, he also holds options to subscribe for 1,134,984 Ordinary Shares,
details of which are summarised in paragraph 4.4 above.

(as of 8 June, 2011)