Jupiter
Mines Limited (ASX: JMS)
ASX
RELEASE
19 SEPTEMBER 2008
JUPITER SIGNS HEADS OF
AGREEMENT FOR IRON ORE
OFF-TAKE WITH HAONING GROUP
KEY POINTS
- Heads of Agreement signed with
LSG Resources Pty Ltd, part of the global Haoning Group, to implement
future off-take agreement.
- Agreement covers 40% of DSO
production from Jupiter?s existing Iron Projects in Western
Australia.
- Jupiter cements strategic alliance
with LSG Resources formed in May through A$3.7M share placement.
Jupiter Mines Limited (ASX: JMS ? ?Jupiter?)
is pleased to announce that it has signed a Heads of Agreement (HOA) with
global Chinese iron ore and metallurgical company, the Haoning Group, to enter
into a strategic future off-take agreement.
Jupiter said today that it has reached
agreement with LSG Resources Pty Ltd (LSG), an Australian company which is part
of the global Haoning Group, encompassing the sale of up to 40% of Jupiter?s
future production of DSO-grade iron ore in Western Australia to LSG in the
event that Jupiter identifies an economic resource within its tenements and
commences iron ore production.
Chief Executive Officer of Jupiter, Mr Greg
Durack, said the Heads of Agreement cements the strong relationship that
Jupiter has forged with the Haoning Group following the $3.7 million share
placement completed in May, which provided LSG with a 12.29% equity stake in
the Company.
?We are very pleased to have secured this agreement
for a future off-take contract with LSG Resources, which confirms their long
term support for the Company and their recognition of the value and potential
of Jupiter?s Central Yilgarn Iron Project and other iron ore assets,? Mr Durack
said.
While details of the off-take agreement are
yet to be determined, and are contingent on Jupiter?s identification of an
economic iron ore resource, Mr Durack said the HOA provided Jupiter and LSG
with a framework to conduct future iron ore off-take negotiations in good
faith.
A drill program has recently been completed
at Mt Mason, comprising 1,629 metres of RC drilling over 20 holes. Assay data
has now been received for 6 holes, with best results including 14m @ 64.1% iron
and 5m @ 59.8% iron, both from shallow depth (refer to ASX announcement of 26
August 2008). Further assay results are expected for the balance of the holes
in the near future.
The Company also has nickel exploration
programs currently underway in the Widgiemooltha Region of Western
Australia.
Haoning Group is a multinational
organisation specialising in the import and export of iron ore, steel and
metallurgical products with its headquarters in Tangshan
City, Hebei Province. The
Haoning Group is also active in the fields of mining, shipping, real estate,
ceramics and tourism.
The Haoning Group?s strategy is to expand
and vertically integrate its operations globally by acquiring and developing
resources, establishing partnerships and developing logistics chains. Its
global operations include LSG Resources Pty Ltd in Australia, Golden World
Enterprises Ltd in Hong Kong, as well as branch offices in India,
Indonesia and Brazil.
Yours faithfully
Greg Durack
Chief Executive Officer
Competent Person
The information in this announcement that relates to Exploration Results
is based on information compiled by Mr Charles William Guy who is a Member of
the Australian Institute of Geoscientist and a full- time employee of Jupiter
Mines Limited. Charles William Guy has sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration and to
the activity that 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?. Charles William Guy consents to
the inclusion in the announcement of the matters based on his information in
the form and context in which it appears Charles William holds the position of
Exploration Manager with Jupiter Mines.
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