Madagascar

NGM has tenements in Madagascar which are prospective for iron ore and mineral sand deposits. A small program on these tenements provided some promising results with up to 46% iron recovered in random itabirite chip samples.

The Company's tenements in Madagascar include:

The Analalava Project

A review of the Analalava project in the north-east of Madagascar identified an area of dunal and fossil beach sands which were considered to have the potential to host heavy minerals. This was confirmed during field inspections which identified the presence of minerals such as ilmenite and zircon in erosional channels draining the sands.

There appears to be some geological similarity to the Fort Dauphin deposit, located further south, which is being developed by Rio Tinto.

The Bureau du Cadastre Minier de Madagascar has granted the Company's applications for exploration permits covering an area of 62.5km2; securing extentions to the sands beyond NGM's existing tenements.

No work programs are planned at Analalava in the near term.

The Mahanoro Project

Rock chip sampling at NGM's Mahanoro Project, located on Madagascar's east coast, has identified two itabirite iron (Fe) prospects in separate tenement blocks. The limited samples from these two areas indicate occurrences similar in geological type to the Soalala deposit (500mt @ 35% Fe) in western Madagascar.

The Company conducted a field program at the Mahanoro iron ore prospect. 40 samples were collected from across the outcropping structure and subsequently analysed.

The Company is encouraged by the results. The iron is itabirite and the samples have a mean iron content of 42.4%. Impurities are low.

The Company has done some desk top work on logistics, with the following positive observations:

• The prospect is just 15km from the coast, meaning rail transport is not an issue.
• The hinterland has a great potential for hydroelectric power due to its high rainfall and dense river pattern and the prospect is conveniently located next to a major river.
• The nearby town of Mahanoro may have potential for development as a port or as a base for trans-shipping.
• The port of Toamasina lies 200km to the north and is currently being upgraded to accommodate Panamax vessels.

NGM is assessing various options to take this project to its next stage which will require drilling.