BADONDO - Exploration Program & Results

EXPLORATION PROGRAM

Following the completion of the airborne geophysics program, Equatorial commenced comprehensive field program at Badondo aimed to rapidly define drill targets for a helicopter supported drilling campaign.

Field work commenced at Badondo in June 2011 and included the opening of base camps and helicopter landing zones, the establishment of communications infrastructure and the completion of a rock sample assay program throughout the target prospects. The rock samples are significant as they confirm the presence of supergene enriched iron mineralization at surface with the potential to host direct shipping ore (“DSO”). 

The results of Equatorial’s rock sampling program revealed that high grade outcropping hematite mineralisation is widespread at Badondo with iron grades as high as 68% Fe. 

Equatorial plans to commence drilling at Badondo early in 2012 using an EVH diamond drill rig supported by helicopter crews. The initial scout drilling campaign at Badondo is designed to provide a first pass view of the potential of the Badondo and Belinga North Prospects to host significant high grade DSO iron mineralisation.

*Exploration Targets: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there have been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.