The Carina iron ore deposit lies 105 km northeast of Southern Cross, WA. The area designated the Yilgarn Iron Ore Project (YIOP) is comprised of five prospects along an east-southeast trending greenstone belt that extends from the Helena-Aurora Ranges in the northwest to the Yendilberrin Hills in the southeast, over a strike length of approximately 40 km. The YIOP project encompasses the previously identified iron deposits of Bungalbin, Bungalbin East and Mt Walton. The Carina deposit was discovered by Polaris Metals NL in May 2007._x000D_
The Carina deposit is located within and parallel to the structurally complex northwest trending Mount Dimer shear zone. The volcanosedimentary Archaean-aged greenstone sequence consists of ultramafic and mafic lavas and flows with interbedded sediments dominated by chert and banded iron formation (BIF)._x000D_
Supergene enrichment processes formed a goethite orebody replacement of BIF sequences within a doubly plunging synclinal fold structure. Mineralised outcrops dominated by goethite form a low ridge 1500 m long, up to 90 m wide and drilled to over 200 m in depth. In the vicinity of the Carina deposit, iron occurrences have been identified over at least a 12 km strike length and the exploration potential of the area is identified as 30 - 40 Mt._x000D_
Polaris Metals began exploration in the area in 2006. Target generation in the area used existing state geological survey maps and regional magnetic survey data to focus on BIF occurrences associated with major structures. Early field investigations resulted in the identification of a large outcrop of predominantly goethite mineralisation at Carina._x000D_
Detailed geological and structural mapping was completed, followed by close-spaced reverse circulation and diamond drilling. The mineralisation is predominantly goethite with specular and coarse platy haematite localised along structures that cut the goethite mineralisation. Mineralised zones are moderately vuggy and larger cavities occur in proximity to fault zones that transect the orebody. A capping by a thin veneer up to 9 m thick of canga or ferricrete occurs in places._x000D_
By December 2008, 178 reverse circulation and 11 diamond drill holes (seven surface holes, four tails) were completed. The current JORC-compliant resource estimate is based on assays from 72 RC drill holes and using a 55 per cent Fe cut-off stands as an Inferred Resource of 27.9 Mt at 58.6 per cent Fe, 1.3 per cent Al2O3, 3.7 per cent SiO2, 0.09 per cent P, and 10.1 per cent LOI. Assaying has recently been completed and will be incorporated into a new updated resource later in 2009.