MDX 0.00% 0.3¢ mindax limited

yuo better have a read of this incase your sel

  1. 10,214 Posts.
    9LETTER TO SHAREHOLDERS AND OPTIONHOLDERS
    Following please find a letter to be dispatched to shareholders and optionholders
    together with a copy of the relevant attachment referred to in the letter.
    Yours sincerely
    Angelo Francesca
    Company secretary
    PRINCIPAL OFFICE
    9/57 Labouchere Road, South Perth, Western Australia
    PO Box 8242 Angelo Street, South Perth, WA, 6151
    Telephone 08 9474 3266 Facsimile 08 9474 3299
    Website www.mindax.com.au
    ABN 28 106 866 442
    REGISTERED OFFICE: c/- FJH Solutions, 21Teddington Rd Burswood WA 6100
    Dear Mindax Shareholder/Optionholder,
    I am writing to you to provide you with an update on the company’s activities and to
    also inform you of certain changes to the composition of our share register.
    Red Rock Resources PLC becomes a substantial shareholder
    On 4th January 2008, Red Rock Resources PLC (“Red Rock”) advised that following
    a series of on market acquisitions it had become a substantial shareholder in Mindax.
    Since then it has notified subsequent increases in its shareholding and as at the date
    of this letter, Red Rock has in total some 8.65% of the Company.
    Red Rock is an AIM listed entity which listed in mid 2005 and which is focussed on
    high-grade manganese and iron ore. It has a market capitalisation of the order of
    $16m.
    In discussions initiated by Red Rock, Red Rock has confirmed its interest in and
    commitment to acquiring high grade iron ore projects and has also confirmed that it
    regards Mindax’s Mt Forrest iron ore project highly.
    Red Rock has advised that it regards its investment in Mindax as simply an
    investment. In relation to its Mindax shareholding, Red Rock has not proposed any
    transaction with Mindax and Mindax has not solicited any proposal from Red
    Rock or any third party.
    Red Rock (as it is entitled to do) has formally requested a copy of the Mindax share
    register and a copy has been supplied in accordance with the requirements of the
    Corporations Act. It may be the case that at some time in the future Mindax
    shareholders may receive direct communication from Red Rock though obviously we
    at Mindax have no way of knowing whether they will or they won’t. Furthermore, if
    there is to be any communication, your Mindax directors cannot predict what the
    nature of that communication might be.
    Whatever such communication (if any) might be, I am enclosing a copy of the Mt
    Forrest project summary paper recently prepared by the Company and released to
    the market on 8 February 2008 so that you may be better able to put in context any
    communication you might receive (if any).
    Mt Forrest Iron Ore Project
    I strongly recommend that you read the Mt Forrest project summary paper so that
    you can develop your own sense of the true value of a Mindax share and in particular
    the potential contribution to value that the Mt Forrest Iron Ore Project might generate.
    MINDAX LIMITED
    Page 2
    The key points that are made in the summary paper include the following:
    · It is estimated that there may be some 650-750 million tonnes of ironstone
    on the Company’s property (to 75meters depth).
    · Five targets for direct shipping hematite ore have been identified at Mt Forrest
    in the Bulga Downs Project and drilling is planned commencing in March
    with a view to delineating a JORC compliant resource in the mid-year.
    · Within the five target areas there may be 90 to 100 million tonnes of
    material. Based on the surface rock chip sampling within these, a grade in
    the range of 57% to 63% Fe may be achievable.
    (There has not yet been any drilling of these targets and accordingly there
    has been insufficient exploration to define a Mineral Resource. The target
    quantity and quality is conceptual in nature. Being conceptual in nature it is
    not certain that further exploration will result in the determination of a Mineral
    Resource.)
    · Preliminary surface sampling has returned significant high-grade hematite.
    · Phosphorous contents are very low averaging 0.04% throughout the iron
    formation system.
    (Phosphorus levels below 0.07% are generally required for premium grade
    steel production and for blending with “high-phos” ores. They can attract a
    significant premium.)
    · Exploration priority is to be given to direct shipping hematite ore with
    investigation of the significant potential for magnetite ore to be
    undertaken at some time in the future.
    Please feel free to contact the Mindax office if you have any questions.
    Yours sincerely
    Gilbert George
    Chairman
    Mindax Limited
    12 February 2008
    MINDAX LIMITED PROJECT SUMMARY FEB08
    MT FORREST IRON – BULGA DOWNS
    Confidential Page 1 8/2/2008
    Mindax’s Mt Forrest Iron Project (100% MDX) is a significant emerging iron
    deposit in the Central Yilgarn. Mindax’s exploration target in the area is
    direct shipping iron ore with an important low phosphorus content.
    Exploration target estimation has been calculated using the area of iron
    stone outcrop within the project areas and by applying a density factor of
    3.5 to estimate tonnes per vertical metre (Table 4). Extrapolated to a
    nominal depth of 75metres, this suggests potential for 650 to 750 million
    tonnes of material. Within the five target areas there may be 90 to 100
    million tonnes of material. Based on the surface rock chip sampling within
    these, a grade in the range of 57% to 63% Fe may be achievable.
    There has not yet been any drilling of these targets and accordingly there
    has been insufficient exploration to define a Mineral Resource. The target
    quantity and quality is conceptual in nature. Being conceptual in nature it is
    not certain that further exploration will result in the determination of a
    Mineral Resource.
    Mindax’s primary objective is to fast track the Mt Forrest iron project to a
    direct shipping hematite resource status by mid-2008.
    LOCATION:
    · Project comprises 7 granted mining leases
    · Cover 55 sq kilometres within the Richardson Ranges
    · Located in East Murchison, 110km south-east of Sandstone
    · 55km south of Geraldton-Leonora infrastructure corridor
    · Leonora/Menzies railheads ~150km, Koolyanobbing 240km
    GEOLOGY & MINERALOGY:
    · Iron formation is folded into north pointing arrow head and extends for 17km
    within prospect, the most significant ironstone mass along the belt.
    · The ironstone ridges give ~100m of relief above the topographic base level.
    · The Iron formation varies from 500 to 2000m in width and,
    · Multiple ironstone layers of 30 to 200m thickness make up the iron formation.
    · Outcrop mapping demonstrates ~2.8 sq km of magnetite, magnetite+hematite
    and hematite material with variable silica.
    · Systematic rock chip sampling indicates grades of 30 to 64% Fe with an
    overall average 40% Fe, 0.04%P and silica varying inversely with Fe
    · Airborne magnetics indicates further iron formation under cover
    PROGRAM:
    · Detailed mapping and sampling of 5 DSO targets (in progress)
    · Analysis of airborne magnetic data (in progress)
    · RC drilling of targets 5000m, first pass drill traverses to -60m (March)
    · Continuing mineralogical studies geological/assay data analysis
    · RC infill drilling (May)
    · JORC standard resource statement (June-July)
    MINDAX LIMITED PROJECT SUMMARY FEB08
    MT FORREST IRON – BULGA DOWNS
    Confidential Page 2 8/2/2008
    Table 1 Results of 153 Rock Chip Samples of BIF within MLs
    Minimum Maximum Mean
    Fe 25.170 63.430 40.007
    SiO2 2.230 62.610 40.743
    Al2O3 0.010 11.540 0.198
    TiO2 0.010 0.140 0.044
    CaO 0.010 0.100 0.023
    Mn 0.000 0.040 0.019
    P_XRF 0.005 0.374 0.038
    S_XRF 0.001 0.073 0.011
    MgO 0.010 0.290 0.036
    K2O 0.001 0.013 0.003
    LOI1000 0.060 6.360 1.607
    Table 2 Key Characteristics of Samples >60% Fe
    Minimum Maximum Mean
    Fe 62.880 63.430 63.093
    SiO2 2.230 8.310 4.607
    P_XRF 0.024 0.061 0.041
    Table 3 Bulga Downs Fe Target Characteristics
    Target Max
    Rockchip
    Fe%
    Length (m) Comment
    Fe1 63.43 2,600 Surface widths of 40 to 70m
    Fe2 62.88 1,250 Surface widths of 40 to 70m
    Fe3 62.97 1,600 Widths to 100m
    Fe4 57.23 600 Suface widths of 45 to 60m
    Fe5 n/a 1,500 Under cover, widths to 100m
    Table 4 Exploration Target Estimations
    Target Outcrop Area (Km2) SG Million tonnes per
    vertical metre
    Fe1 0.1210 3.5 0.42
    Fe2 0.0912 0.32
    Fe3 0.0792 0.28
    Fe4 0.0304 0.11
    Fe5 0.0998 0.35
    0.4216 1.48
    All BIF 2.8264 9.89
    MINDAX LIMITED PROJECT SUMMARY FEB08
    MT FORREST IRON – BULGA DOWNS
    Confidential Page 3 8/2/2008
    Systematic mapping and sampling of iron
    formation has identified five key target
    positions for further investigation including RC
    drilling. This figure shows the distribution of
    mapped ironstone, sample locations and
    quality and target positions. This information
    is detailed in the tables attached
    MINDAX LIMITED PROJECT SUMMARY FEB08
    MT FORREST IRON – BULGA DOWNS
    Confidential Page 4 8/2/2008
    The information in this report that relates to Exploration Results and Mineral Resources is based on information
    compiled by Mr Gregory John Bromley who is a member of the Australasian Institute of Mining and Metallurgy,
    with more than 5 years experience in the field of activity being reported on.
    Mr Bromley is a full-time employee of the Company and has sufficient experience which is relevant to the style of
    mineralisation and type of deposit and to the activity which he is undertaking to qualify as a Competent Person as
    defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources
    and Ore Reserves”. Mr Bromley consents to the inclusion in the report of the matters based on his information in
    the form and context in which it appears
 
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