The board thanked Chester who helped the company evolve from a explorer to discoverer.

Carpentaria is currently undertaking some very interesting exploration programs, and just last month allocated a substantial $3.5 million budget for greenfields exploration in financial year 2012.

The budget is to continue aggressive exploration across eastern Australia, which excludes the Hawsons Iron Project pre-development costs.

Carpentaria already has a selection of priority drilling targets identified at the Koonenberry Nickel and Temora Gold Projects, with the Yanco Glen and Apollyon tin-tungsten projects near Broken Hill to be advanced.

At Koonenberry the company has an extensive footprint of 1800 square kilometres, which comprises six new exploration licenses, with a high priority prospect including Mt Arrowsmith East.

Boosting the prospectivity at Mt Arrowsmith East is a past sulphide bearing drill intersection of 22 metres at 0.23% nickel and 0.18% copper was recorded in a deformed ultramafic intrusion, which is part of a 7 kilometre geological belt containing similar intrusions.

Carpentaria already has a selection of priority drilling targets identified at the Koonenberry Nickel and Temora Gold Projects, with the Yanco Glen and Apollyon tin-tungsten projects near Broken Hill to be advanced.

At Koonenberry the company has an extensive footprint of 1800 square kilometres, which comprises six new exploration licenses, with a high priority prospect including Mt Arrowsmith East.

Boosting the prospectivity at Mt Arrowsmith East is a past sulfide bearing drill intersection of 22 metres at 0.23% nickel and 0.18% copper was recorded in a deformed ultramafic intrusion, which is part of a 7 kilometre geological belt containing similar intrusions.

At the Temora Gold Project in the Lachlan Fold Belt of NSW, Carpentaria said access by the state government is expected to allow drilling at the Mother Shipton porphyry gold-copper prospect this year, where more than 30,000 gold ounce was historically mined.

Adding to the potential of Mother Shipton is shallow historical drill intersections including 4 metres at 3.95 grams per tonne (g/t) gold from 2 metres, and 6 metres at 2.35g/t gold from 38 metres are yet to be followed up.

Nick Sheard, executive chairman commented, “the company is focused on further discoveries following its successes at Hawsons and Euriowie”.

“Carpentaria is committed to exploration, and the large budget for this year confirms our determination to become a miner as quickly as possible."

The exploration budget excludes pre-development expenditure at the company’s flagship Hawsons Iron Project, but includes provision for over 3,000 metres of reverse circulation and diamond drilling to test already defined targets across five wholly owned projects in the Broken Hill and Lachlan Fold Belt regions.

PFS points to development of Hawsons JV Iron Project

Carpentaria recently completed the Pre-Feasibility Study (PFS) at the company's 60% owned Hawsons Magnetite Iron Project with results indicating potential production of 20Mtpa of high grade iron ore concentrate (69.9%) to mine gate.

The company is planning a start-up mine of 5 to 6Mtpa of iron concentrate using existing transport and port facilities with a mine life of at least 20 years after an initial ramp up.

Importantly, the project is strategically located to existing key project infrastructure and has and ready access to skilled labour.

Development capex for the project is estimated at A$2.8 billion including all mining, processing and infrastructure requirements and there is a forecast site cash operating cost at mine gate of A$35.75 per tonne of concentrate.

A positive NPV after tax of A$2.8 billion and IRR of 21.3% has been forecast.

The initial Inferred Resource of 1.4 billion tonnes underpins the PFS outcomes with further significant tonnage potential. Additional pits or a deeper single pit are expected to have a 50 year plus total mine life.

The joint venture is with the private company Bonython Metals Group.

Carpentaria has a 20% interest in Hughenden, with Guildford Coal (ASX: GUF) 80%, with Guildford also being granted a trading halt earlier in the day.

Hughenden is located in the highly prospective basins of Queensland, with historical data indicating a thermal coal product.

The project has two coal bearing stratigraphic horizons which are the primary exploration targets, which are Permian aged Betts Creek Beds of the Galilee Basin, and Jurassic aged Blantyre Beds (Injune Creek Group) of the Eromanga Basin.

The Permian coal seams of the Betts Creek Beds have a known sub-crop line along the north-eastern edge, and have been given priority in the exploration timetable.

It also owns 20% equity stake in the Hughenden thermal coal project in Queensland.

Back to Hawsons Iron project, where many boxes have been ticked already including:

- established magnetite resource
- infrastructure
- power
- water
- native title extinguished
- funding

Hawsons is ideally located just 60 kilometres south of Broken Hill in New South Wales, the tenements are only 40 kilometres from a main rail line and have ready access to skilled labour and other infrastructure.

In April 2010, Carpentaria introduced a farm in partner to the Hawson project with unlisted Bonython Metals Group (BMG), with a $81 million deal that was a coup for managing director Nick Sheard as BMG agreed to a staged injection of cash to Carpentaria of $53 million plus $28 million for exploration costs.

BMG agreed to make an inital cash payment of $5 million and a further $8 million to fund exploration and resource definition.  Future staged cash and other payments were agreed of up to $68 million to Carpentaria.

In return, Carpentaria would be cashed up and retain a 20% free carried interest to the targeted production of 20 million tonnes per annum (tpa) iron ore concentrate from Hawsons.

Fast forward to 2011 and the joint venture with BMG will see a next payment to Carpentaria of $25 million due by 15 May 2011.  BMG will fund the Feasibility Study with an estimated cost to it of $20 million to take BMG to 51% of the Hawsons.  If the study is positive, Carpentaria would have cash of $23 million and free carried to the 20mtpa milestone.  BMG would own 80% of Hawsons.

The Pre-feasibility study (PFS) is almost complete to determine the viability of a magnetite operation at Hawsons with an initial target of 5 - 6 million tonnes per annum (mtpa), ramping up to 20 mtpa. This would use conventional mining and processing techniques to produce a high grade concentrate shipping out of South Australia using existing infrastructure initially - transport and port for production up 5-6mtpa.

Then it is on to the Bankable Feasibility Study.

With the development of Hawsons and a new magnetite iron region near Broken Hill would bring considerable potential economic benefits for the region as well as to South Australia from new jobs and services and potential new infrastructure built.

In terms of the resource upside, Hawsons has it in spades.  From a current inferred iron resource of 1.4 billion tonnes at Davis tube Recovered Grade of 15.5% for 220 million tonnes of contained iron to an exploration target of 6-11 billion tonnes at 14-17% magnetite DTR with a concentrate grade of 69 -71% Fe. 

Significantly, this comes with a relatively low level of impurities, to a depth of 250 metres over an estimated strike length of 34 to 51 kilometres.

This is considered to be one of the largest magnetite exploration targets in Australia. Importantly the magnetite occurs in a siltstone and is very soft, enabling low cost mining and crushing.

Impressively, Hawsons looks to be a low cost operation, with low power requirements, a truck and shovel mining reducing costs and low strip ratios.

However, Carpentaria is not a "one trick pony". It has the equity in the Hughendeon coal project as well as other projects at varying stages of exploration including:

- Hematite / magnetite target at McDougalls / Torrowangie
- Continue tin exploration at Euriowie / Yanco Glen / Apollyon
- Define additional tungsten resources at Yanco Glen
- Drill nickel targets at Koonenberry when granted
- Drill Glen Isla gold early May
- Drill Mother Shipton Gold when gain access

In all, Nick Sheard has added significant value to Carpentaria and de-risked the company via the farm-in agreement negotiated with BMG over Hawsons. It is a big project and these require large amounts of capital.  The next 6-12 months looks to offer Carpentaria investors significant news flow and opportunities with the share price resting under the $0.60 level.

Under the terms of the agreement, Guildford spent the first $2.0 million on exploration, with Carpentaria contributing pro rata to maintain its interest.

The exciting potential for Hughenden is that it is located in the northern Galilee Basin of Queensland, which is host to over 20 billion tonnes of Inferred coal resources.

The basin includes the Hancock Resources Kevin’s Corner Project, along with Waratah Coal’s China First Project.

Hughenden is targeting export thermal coal resources with open cut and underground potential, and covers 16,500 square kilometres around the northern margin of the Galilee Basin.

Nick Sheard, chairman of Carpentaria, said "In partnership with Guildford Coal, Carpentaria, with its strong cash position, is well placed to continue involvement and realise the potential of its investment in the project in the very near future."

The project is being explored aggressively with two drill rigs in operation, with some very encouraging coal intersections close by.

A Queensland government drill hole recorded coal intersections of 7 metres net across four separate seams of the Betts Creek Beds at a vertical depth of 200 to 300 metres, which is only 9 kilometres away.

Adding to the potential is two of these seams are of sufficient thickness to enable high volume underground extraction once the lateral extent is confirmed.

Carpentaria said exploration is currently focussed in the area with an exploration target being finalised.

Sheard added, “Carpentaria is gearing up for another large exploration program this year, which will include both extensive field work and drilling on its own projects in NSW, and also through its joint venture partners in NSW, Queensland and South Australia.

“Our drilling program covers a range of projects in eastern Australia, spanning iron, tin, tantalum, gold, copper, nickel and coal."

Improving the resource even further is that there are no significant impurities.

Carpentaria, and the market, will be anticipating the pre-feasibility study outcomes which are expected in early 2011, targeting an initial open pit with a mine life of over 15 years, with production commencing at 6 million tonnes annually before potentially ramping up to 20 million tonnes each year.

Nick Sheard, executive chairman, said "High-quality magnetite, such as that identified at Hawsons, with potential for production of direct reduction pellets can currently command prices of up to US$190 per tonne and Carpentaria has already received interest from a number of potential Asian buyers for off take of our share of future output.”

Independent geologists Hellman and Schofield Pty Ltd estimated the resource.

Hawsons has the potential for substantial future resource upgrades, as the maiden resource covers just one area within the project.

The project therefore could have a multi-decade mine life, with an exploration target of; 6 to 11 billion tonnes at 14% to 17% magnetite davis tube recovered grade with a concentrate grade of 69% to 71% iron, to a target depth of 450 metres.

The resource is open along strike to the south east and down dip.

Sheard added, “Our independent test work shows the favourable characteristics of the resource comprising large tonnages, soft mineralisation, excellent magnetite liberation and high concentrate grades."

The recently completed scoping study highlighted the low cost of mining and processing at the project, due to the softness of the magnetite siltstone with a Bond Work Index of 6.3 kWh/t.

This compares favourably to the Australian range of about 16.0 to 29.0 kWh/t for the more typical banded iron formation magnetite deposits.

Carpentaria’s joint venture partner, Bonython Metals Group, (currently at 40% equity), will have the right to pay Carpentaria $25 million to vest 51% in the JV.

Bonython would then fund a $20 million bankable feasibility study due for completion within two years.

On completion of the study, Bonython can earn an 80% interest in the project on payment of an additional $23 million in cash to Carpentaria.

Carpentaria will then retain a 20% free carried interest to 20 million tonnes annually of concentrate production operation which represents a 4 million tonne annual output for Carpentaria at this full projected production rate.

Carpentaria said it was not aware of any material information that had not been announced to the market, but did state in a response that recent media attention, '... An article published by the Australian Financial Review on 6 December reiterated these results which include the pending release of a JORC compliant resource from our Hawsons Iron Project...'

The 'results' referred to the Carpentaria AGM presentation in late November.

Hawsons is close to infrastructure, located 60km southwest of Broken Hill, and 30km to the Port Pirie rail line, with no native title.

Bonython Metal Group is earning into the project, with the stage 1; cash to CAP $5.0m completed, with exploration funding $8.0m BMG vests 40%.

For stage 2; cash to CAP $25.0m by March 2011, BMG vests 51%.

For stage 3; feasibility study costs around $20.0m, and on completion cash to CAP $23.0m, BMG vests 80%.

CAP has free carried to production of 20mtpa.

Carpentaria shares closed higher yesterday, last trading at $0.685.

Importantly, 26 holes were drilled into 5 prospects identified from airborne magnetics previously undrilled.

The Phase 1 drilling aimed to test the grade, thickness, and depth of weathering and metallurgical properties of ironstone from all of the project’s major magnetic anomalies.

Carpentaria has identified a large magnetite exploration target comprising 3.5 to 5.8 billion tonnes at 18% magnetite DTR (Davis Tube Recovery) with a concentrate grade of 69-71% Fe, to a depth of 250 metres over a prospective strike length of 34 to 51 kilometres.

Carpentaria places great emphasis on the DTR results as this assists in determining the value of any magnetite project.

Nick Sheard, executive chairman at Carpentaria said, “While unseasonal rains and delays in assays and analyses have extended the program by approximately three to four weeks, the company was pleased by the drilling results obtained to date."

“A combination of reverse circulation and diamond drilling on the targeted magnetic anomalies has encountered
magnetite siltstone in every hole."

“Carpentaria is now awaiting the return of the important DTR results, which are expected within the next two months, with a view to rapidly progressing this project."

Located 60 kilometres south of Broken Hill, the Hawsons Iron Project covers the entire known New South Wales portion of the Braemar Iron Formation, which is highly prospective for bulk magnetite iron deposits.

Carpentaria is also well advanced on a Scoping Study, using independent consultants that will help define a cut-off DTR grade, a preliminary mine plan, a processing flow sheet, transport options and a high level financial model, while an environmental study has also been commenced.

Upon receipt of all the data and Scoping Study, Carpentaria expects to commence the resource drilling program and Pre-Feasibility Study with the aim of defining up to 1 billion tonnes of Inferred Resource, which the company anticipates to commence in late September.

Meanwhile, Carpentaria continues to progress its aggressive 2010/11 $10 million exploration drilling program across its projects in eastern Australia.

The drilling results from the Hughenden Coal Project in Queensland’s northern Galilee Basin, with the first three drill holes intersecting coal interpreted as from the Basin’s Betts Creek Beds were released by Guildford to the ASX on 26 July 2010.

A second drill rig is planned to commence in September targeting open pit coal potential on EPC1478 once granted.

Guildford is spending $2 million on exploration at the project through to the definition of an Inferred Resource. The project partners currently have eight granted tenements spanning 6,333 square kilometres across the Galilee and Eromanga Basins, targeting export quality thermal coal and in a favourable location for infrastructure.

Carpentaria’s executive chairman, Nick Sheard, said Guildford was anticipating the completion of a JORC-defined Inferred Resource before the end of 2010, which if achieved, would add significant value to Carpentaria’s project portfolio. A second drill rig is planned to commence in September, pending granting of the EPC1478 tenement.

“Carpentaria is highly encouraged by the initial drilling results at Hughenden, with the potential for the development of a thermal coal deposit targeting export markets. This adds to our current attractive range of projects across eastern Australia, including the Hawsons iron and Euriowie tin discoveries near Broken Hill,” he said.

“Boosted by an aggressive $10 million exploration program this calendar year and the support of our joint venture partners, Carpentaria is moving quickly to make the transition from explorer to mining house in an environment of rising commodity prices.”

Guildford Coal has completed 3 mud rotary holes in the region on the first granted tenement (EPC1394), intersecting coal at an estimated depth of 300 metres, some 100 metres shallower than the previously interpreted. Of the three holes completed to date, interpreted Betts Creek Beds coal was intersected in every hole of tenements. Guildford Coal said the coal intersections proved continuity and significant lateral extent of target Galilee coal seams confirming exploration target. 

The results reinforced the significant Galilee Basin potential – large export thermal coal potential with Guildford’s tenements located in close proximity to infrastructure.

Given the company's exploration success and cash injection, Carpentaria has reported an almost full take up of all the Carpentaria Options that fell due on June 30th, 2010, realizing $6,204,000.00. This boosts Carpentaria’s cash reserves to $20.1M.

Carpentaria has now received $13 million from BMG, comprising $5 million in cash and the remainder funding exploration and pre-feasibility work aimed at defining up to 1 billion tones of Inferred Resource at EL 7208 (Burta).

Nick Sheard, Carpentaria’s executive chairman, said he welcomed BMG’s commitment to the JV as shown by their financial backing and was very pleased with the take up of the options.

This gives Carpentaria the financial resources to maintain a strong exploration program and seek more mature opportunities.

“Carpentaria is excited by the potential for the Hawsons Iron Project and is determined to quickly move the project towards pre-feasibility status, backed by the latest funding from our joint venture partner."

"Assuming a positive pre-feasibility outcome, which is anticipated early next year, the project will move to Stage 2 in which case BMG will pay Carpentaria an additional $25 million to vest 51% in the project,” Sheard said.

“Ultimately, Carpentaria will retain a 20% free carried interest up to the targeted production of 20 million tons per annum of iron ore concentrate, giving shareholders a low-cost entry to a producing iron ore mine.”

He said the latest payment from BMG and the option take up payment would be used to boost exploration at the company’s other attractive projects in eastern Australia, including drilling at the Euriowie tin project (100% CAP) and Panama Hat JV gold project in August, and also at the Combaning gold/nickel project (100% CAP).

Drilling is continuing at the Hughenden Coal Project in Queensland with promising initial results, while drilling is set to start in late August at the Glen Isla gold joint venture.

“Carpentaria’s aggressive exploration program has already achieved two discoveries, Hawsons and Euriowie, and we are confident of adding to our promising project pipeline."

"With $9 million committed towards exploration this calendar year and additional funding anticipated from BMG at Hawsons, Carpentaria has the necessary financial and geotechnical resources to achieve further success and make the transition from minerals explorer to mining house,” Sheard added.

At the Hawsons Iron Project two Reverse Circulation rigs and one diamond rig are operating on the Burta JV, as part of the 4,000 metre drilling program planned in the initial phase.

The Hawsons Iron Project is also potentially the State’s biggest discovery of magnetite iron. The magnetite occurs in a siltstone and is very soft, allowing for low-cost mining and crushing in a favorable location for infrastructure just 60 kilometers from Broken Hill.

Carpentaria said these results will be announced at the completion of the program and when assay and analysis results are obtained.

The company has requested a trading halt from the ASX to evaluate the offer and will make an announcement prior to opening Tuesday, 13 July 2010.

CAP has been in the news lately with its Hawson iron joint project, near Broken Hill in New South Wales which is highly prospective for bulk magnetite iron.  CAP closed a deal with privately owned Bonython Metals Group Pty Ltd to farm-in to the venture with staged payments

The project has an exploration target of 2.2 to 4.8 billion tonnes at 18% magnetite DTR with a concentrate grade of 69 -71% Fe with a low level of impurities, to a depth of 250 m over an estimated strike length of the prospective host unit of 34 to 51 km. This deposit is widely considered to be one of the largest magnetite exploration targets in Australia.

CAP also released promising results from the first hole drilled at the Hughenden Coal (CAP 20%) project.

Carpentaria has been on a roll of late, making significant progress at its Hawsons magnetite discovery near Broken Hill, a new magnetite iron province, with recent announcements de-risking funding and mitigating project risk.

Guildford Coal is providing the initial phase of exploration funding for FTB, the owner of the EPC1394. Carpentaria owns 20% of FTB, with Guildford Coal holding the balance.

Eight tenements were granted, spanning an estimated 6,333 sq km of potential export thermal coal in Galilee and Eromanga Basins.

Guildford’s model for the northern end of the Galilee Basin suggested that the coal-bearing Betts Creek Beds were relatively deep in this central location, which has been supported by the first hole intersecting coal  at an estimated depth of 300m, some 100m shallower than the previously interpreted.

This proof of concept suggests a shallow dip of the coal beds down from the north to the south.

Carpentaria’s executive chairman, Nick Sheard, said the Company was encouraged by the initial results in one of the world’s top basins for thermal coal.

“The Galilee Basin has been the focus for a number of major coal export deals, and we are excited by the prospects for a thermal coal deposit favourably located near infrastructure,” Mr Sheard said.

“Guildford Coal has assembled a strong team with considerable expertise and experience in coal exploration, development and operations. These initial results have boosted confidence in Hughenden’s potential.”

“Hughenden has given Carpentaria exposure to potentially attractive export coal projects at minimal cost to shareholders, but with maximum upside,” Mr Sheard said.

“Carpentaria has now assembled an attractive range of projects, diversified both geographically and by commodity type across eastern Australia, including the exciting Hawsons magnetite iron and Euriowie tin discoveries near Broken Hill, NSW. Boosted by an aggressive exploration program and the efforts of our project partners, we are in an excellent position to achieve our goal of building strong cash flow-generating mining operations.”

The Phase 1 drilling program is also targeting potentially shallower coal-bearing units to the north and north east.

This agreement expands Carpentaria’s Galilee Basin coal tenement exposure with the injection of tenements by The Chairmen 1.

Under the agreement, The Chairmen 1 has acquired an 80 per cent stake in Carpentaria’s wholly owned subsidiary FTB. Carpentaria has received an upfront payment of $300,000 and The Chairmen 1 will manage and fund exploration through to definition of an Inferred Resource, for a maximum expenditure of up to $2 million.

Carpentaria Chairman Nick Sheard said the company was delighted that this agreement with The Chairmen 1 expanded Carpentaria’s Galilee tenement position and brings their considerable expertise and experience in coal exploration, development and operations.

"The Galilee Basin has been the focus of major coal export deals in recent weeks, and today’s agreement increases Carpentaria’s interest to 11,350 square kilometres of exploration applications and licences, giving the company greater exposure to the potential discovery of a thermal coal deposit," Mr Sheard said.

Carpentaria is an exploration company focused on discovering base, precious metals and bulk commodities in eastern Australia.

The company holds 100% owned tenements in NSW and Queensland and also has a number of farm-in deals. Most tenements have known mineralised systems and are being explored using modern, efficient technologies. The company currently has interests in iron ore, tin, gold, copper and coal exploration projects/

The results are similar to those obtained from  Carpentaria drill holes at its Core Anomaly and – along with magnetic modelling - indicates a considerable increase in potential Wonga magnetite tonnages.

There are also additional potential magnetite tonnages interpreted at the Dam Anomaly, said Carpentaria Exploration’s executive chairman Nick Sheard.

“Geological and laboratory analysis shows that the source of the large, 100%- owned Wonga Aeromagnetic Anomaly is magnetite ironstone very similar in character to that recently drilled at the Hawsons Core Anomaly, which is prospective for beneficiation-quality magnetite iron ore. It also gives us confidence that the adjacent Dam

Anomaly is similar material and adds significantly to potential tonnages for this project.”

Carpentaria located a previously misplaced drill-core from a historical Placer Exploration hole, DD93W2, which was drilled on the flank of the 100%-owned Wonga magnetic anomaly. The hole was drilled to test for iron oxide copper gold targets on the flank of the magnetic anomaly. The hole finished in a magnetite ironstone at 147.2 m below collar.

While core from the end of the hole was missing, the 2.2 metres from 141.5 metres down hole or 132 metres below surface was available and quarter core was taken and dispatched for analysis.

The core returned a Davis Tube Recovery (DTR) analysis of 17.43% weight recovery and a concentrate grade of 68.6% iron and 4.3% SiO2 with negligible deleterious elements.

This hole confirms the concept that the Wonga Anomaly’s source can be directly correlated to ironstone at the adjacent core magnetic feature, which is part of the prospective Neoproterozoic Braemar Facies of the Yundamutana Sub-Group.

The modelling of the magnetic anomaly has also confirmed that the Placer hole has only intersected the edge of the magnetic anomaly. The modelling indicates the source is a large mass of magnetite ironstone.