Padbury Mining Limited (ASX:PDY) Commence Concept Mining Study At Peak Hill Iron Joint Venture

Perth, May 24, 2011 AEST (ABN Newswire) - Padbury Mining Limited (ASX:PDY) and its joint venture partner Aurium Resources (ASX:AGU) have appointed contract geologists CSA Global to undertake a concept study on the Company's highly prospective Peak Hill Iron Joint Venture in Western Australia's Mid West region.

The study will assess the mining potential of Peak Hill's magnetite ore resource and assist in defining future stages of project development.

The appointment of CSA Global follows the Company's April announcement of an 850Mt maiden inferred JORC resource at 27.3% Fe. An extended drilling program, approved recently by the Department of Mines and Petroleum, will be undertaken in coming weeks to further define this source.

Managing Director Gary Stokes said the concept study was an important next step in the Peak Hill Project development.

"After delineating a positive initial JORC resource, it is important we start to model our project scope to continue driving development forward," he said.

"A successful conceptual mining study will be a key marketing driver for the project and for attracting future investment.

"The results of this study will give us a solid platform on which to base our future project work."

The study will include: Assessment of most suitable mining and processing methods Assessment of infrastructure required to get ore to market Proposed methods for mining, processing, transport and sale of products Assessment of marketability and sale-ability of the products Estimate of capital and operating expenditure (based on available data and level of study)

The study is expected to be completed in the September 2011 quarter.

The Peak Hill Iron Ore Project is on track with all Year One development targets, with a comprehensive program of work defined for future development.

The work program for the remainder of 2011 includes Drilling to further define the magnetite resource Initial drilling of potential hematite-goethite mineralisation at the Company's Mt Padbury deposit Further baseline studies (environmental, hydrogeology)

Heritage surveys have been undertaken at all proposed drill sites.

Contact

Gary Stokes Managing Director Aurium Resources Limited Tel: +61-8-6460-0250 Terry Quinn Managing Director Padbury Mining Limited Tel: +61-8-6460-0250 http://www.padburymining.com.au