Korab Resources Ltd is an Australian mining company listed on Australian Securities Exchange (ASX:KOR) and traded on ASX and Berlin Stock Exchange (BSE).  Korab operates several exploration projects in Western Australia and the Northern Territory (see below) with potential for potash, rare earths, tin, copper, lead, zinc, nickel, phosphate rock, iron ore and several industrial metals including vanadium, titanium, wolfram, manganese and cobalt. Korab also operates two development projects in the Northern Territory where it aims to produce phosphate rock and magnesium metal (see below)

EXPLORATION PROJECTS
In contrast to most micro-cap explorers’ Korab has been utilising recently developed exploration strategy which can be termed “Mineral Systems” approach. This philosophy centres on applying the understanding of the mineralising processes in a predictive capacity, rather than utilising a purely empirical approach. It is a method focusing on ‘why’ mineralisation occurs and ‘where’ it should occur under various geological conditions. This is in contrast to a traditional approach which largely targets only geochemical or geophysical anomalies. The “Mineral Systems” approach has several benefits. It enables Korab to explore for several styles of mineralisation as opposed to focusing on a single mineralisation model. In addition, Korab increases the chances for discovering an entirely new zone, or a different style of mineralisation by utilising all available data in a more holistic fashion.

Ashburton Downs Project
Ashburton Downs  is located near Parabardoo in the Ashburton Mineral Field in the Pilbara region of Western Australia. Past exploration shows that target stratigraphies at Ashburton Downs have a potential to host potash, rare earths, detrital iron, copper and other base metals mineralisation. The area has recently received exploration attention from BHP, Rio and FMG with BHP and FMG applying for exploration ground adjoining Korab’s tenements and applications. (click here for diagram)

Rum Jungle's Batchelor and Green Alligator Projects
Batchelor and Green Alligator projects are located in the Rum Jungle Mineral Field in the Pine Creek orogen of the Northern Territory, 70 km south of Darwin. Past exploration shows that target stratigraphies at Batchelor and Green Alligator projects in Rum Jungle Mineral Field have a potential to host tin, copper, lead, zinc, phosphate, rare earths, nickel, cobalt and banded iron formations. (click here for diagram)

Tucker Creek Project
Tucker Creek project is located in the Gascoyne region of Western Australia, 25 km from West Coast Highway and 100 km from the coast. The area under exploration is prospective for copper, lead, zinc, gold and other minerals and has recently attracted interest from FMG and RIO (see diagram below). Korab has acquired past exploration data for the project area and evaluation of this data is nearing completion. Early results indicate significant potential for polymetallic deposits as well as potential for commercial quantities of other minerals. (click here for diagram)

DEVELOPMENT PROJECTS
Korab also operates 2 mining and quarrying projects in the Northern Territory's Rum Jungle Mineral Field where it is working to commence development of organic phosphates project (Geolsec) and magnesium project (Winchester). Our corporate strategy is to establish Korab as a niche operator in sectors with strong historical growth and a continuing long term growth potential.  Our mining projects are characterised by low operating cost, high profit margin and superior logistics and location.

Geolsec Organic Phosphate

GEOLSEC BIO+ Organic phosphate rock fertiliser

Organic farming is the fastest growing sector of the global economy. Its' resilience to economic slowdown has been proven recently when organic farming grew at 17% annual rate while the global economy went through the worst recession in decades. Australia is the largest organic producer globally with 12 million hectares under organic cultivation. Organic phosphate fertiliser is environmentally and nutritionally superior to chemical fertilisers and can be used on a wide variety of crops and pastures. Geolsec Phosphate Operations P/L (Korab's subsidiary) is planning to commence production of organic rock phosphate fertiliser within months from receiving all regulatory approvals.

Winchester Magnesium

Magnesium is the metal of the 21st century. Stronger than steel yet lighter than aluminum. It is widely used in aerospace and military applications, steel making, super conducting materials, automotive sector and building and construction. Experts believe that the growing demand for lighter, fuel efficient vehicles, super conductors, steel, advanced alloys and eco-friendly building materials will ensure demand for magnesium continues to increase at historical rate of 7% pa. 

Pilot magnesium production plant in operation (click to enlarge)

Chinese Government has put lithium and magnesium on the list of strategic materials indicating the value it places on this advanced material. Korab's Winchester magnesium project is one of the best located magnesium deposits in the world with ~17 million tonnes of JORC Code compliant resource @ 91% MgCO3. Winchester is located just 75 km south of the port of Darwin. Project is serviced by excelled infrastructure including, rail, sealed highway, gas pipeline, high voltage power and potable water.

BATCHELOR WINCHESTER PROJECT ECONOMICS

CURRENT MAGNESIUM SPOT PRICE

Chart of Magnesium Prices
12 months, $/Tonne, FOB China
(click on link, or image to see chart)

JOBS @ KORAB
If you are seeking employment in the mining sector please send your application and current CV in strict confidence to:
jobs@korabresources.com.au

SUBSCRIBE TO INFORMATION UPDATES
subscribe@korabresources.com.au

LINKS
www.luganskgold.com.au
www.melrosegold.com.au
www.geolsec.com.au

TWITTER

ANNUAL REPORT
Korab Group Annual Report 2011

ASX ANNOUNCEMENTS
Korab on ASX - 2011
Korab on ASX - 2010
Korab on ASX - 2009
Korab on ASX - 2008
Korab on ASX - 2007
Korab on ASX - 2006
Korab on ASX - 2005

Priority in Gold IPOs

Korab shareholders will receive priority entitlements in IPO's of Melrose Gold Mines and Lugansk Gold ahead of other investors. Both companies will seek listing on ASX this year. You can download a copy of the Melrose Gold Mines Ltd prospectus by following this link www.melrosegold.com.au or you can request a copy by sending an email with your name, address and telephone number to prospectus@melrosegold.com.au

MELROSE GOLD MINES
Melrose Gold Mines has 1,300 square km of prime gold exploration properties in Western Australia and the Northern Territory. One of the projects owned by Melrose Gold Mines is the Melrose gold project which contains around 340,000 ounces of gold in JORC compliant resource.

Mineralisation at Melrose is open at depth and along strike offering excellent exploration upside with a potential for additional resource nearby where drilling has discovered near-surface gold mineralisation. Melrose Gold Mines will complete a definitive feasibility study to develop this project following its IPO. Scoping study completed by independent experts shows that Melrose project may be developed as a stand alone operation or the ore may be trucked to the nearby mills at Bronzewing, Darlot or Thunderbox.

LUGANSK GOLD
Lugansk Gold's Bobrikovo gold and silver mine is located in the Lugansk region in eastern Ukraine. Bobrikovo has a JORC Code compliant resource of 1,012,000 ounces of gold. Approximately 500,000 ounces are in measured and indicated categories. Bobrikovo deposit also contains silver as a accompanying metal. The average silver content is 45.2 g/t, however in some parts of the deposit grade reaches over 400 g/t. Silver resource has been estimated at between 12,250,000 and 14,500,000 ounces. It should be noted that silver credits have not been included in the previous economic assessments of Bobrikovo deposit. Inclusion of the silver credits further enhances the economics of this project.

Click on the image on the left to see interactive 3D model of Bobrikovo deposit from surface to 200m depth showing mineral resource blocks with average grade above 1g/t Au. Deposit is open at depth and along strike. Some parts of the deposit are constrained by depth of drilling. Several deeper holes drilled in the central section have shown that Bobrikovo deposit has excellent exploration potential with mineralisation extending from surface to below 3,200 meters.

Government geologists have estimated that Bobrikovo contains between 2.3Moz and 3Moz Au in oxide and primary ores *.

Bobrikovo is currently mining and stockpiling oxidised ore. It is expected that, subject to to the completion and commissioning of processing plant, the mine will commence production of gold concentrate from oxide ore in 2011. Oxide ore zone, which contains around 130,000 ounces of gold, has low strip ratio and high grade and can be concentrated at low capital and operating cost using a simple gravity circuit. Bobrikovo is targeting operating costs for the oxide zone around US$250 - $280 per ounce.

You can request a copy of the Lugansk Gold Ltd prospectus by sending an email with your name, address and telephone number to prospectus@luganskgold.com.au

* This range should be viewed as an exploration target.