Perth, June 14, 2006 (ABN Newswire) - The Directors of Polaris Metals NL (ASX: POL) are pleased to announce significant developments in the Goldsworthy Iron Ore Project where Polaris is earning a 70% interest and Leviathan Resources Limited (ASX: LVR) holds 30% carried to pre-feasibility.

Highlights

- New channel iron deposit (CID) discovered within Goldsworthy Iron Ore Project 95km east of Port Hedland, Western Australia.

- Discovery within 2km of rail and the Great Northern Highway, expanding the range of iron ore targets for Polaris' current exploration program.

- WA Government's proposed underwriting of planned $200 million expansion of Port Hedland public shipping facilities boosts priority of the Goldsworthy Project.


The Goldsworthy Iron Ore Project comprises the 120km2 Leviathan exploration licence E45/2358, which is contiguous with BHP Billiton's Mt Goldsworthy mining leases, 95km east of Port Hedland in the North Pilbara region of Western Australia (Figure 1).

Recent geological reconnaissance by Polaris geologists has located poorly outcropping channel iron deposits (CID) over a strike length of approximately 1.5km and located within 2km of the BHP-Billiton railway and within 1km of the Great Northern Highway (Figure 2).

The northeasterly trending CID is open to the northeast beneath extensive soil and alluvium, and the presence of similar CID material within Pardoo Creek alluvium, approximately 6km to the east, suggests potential for a substantial strike length.

The new discovery is significant, and now represents a high priority target for a potential iron ore mining operation, particularly in the light of recent State Government and Port Hedland Port Authority announcements.

The Port Hedland Port Authority is planning a $200 million expansion of public shipping facilities for an extra 15 million tonnes a year of capacity to be available within two years. The WA Government will underwrite the project if prospective miners can demonstrate a need for it.

A gravity survey is under way seeking repetitions of Mt Goldsworthy-type massive hematite deposits and covering CID target areas.

Background
The former BHP mine at Mt Goldsworthy last operated in 1982, having produced approximately 157 million tonnes of iron ore in its 16 years lifetime.

Of significance from an infrastructure perspective, the Goldsworthy rail link to Port Hedland has been maintained, and is currently used by BHP Billiton for transporting ore from the Goldsworthy Extension Project in the Shay Gap area 50-100km to the east. E45/2358 is also easily accessible from Port Hedland via the sealed Great Northern Highway (Figure 1).

In August 2005 Polaris announced the terms of an agreement with Leviathan wherein Polaris can earn a 70% interest in E45/2358 by funding A$2.5 million in exploration activities over four years. Expenditure on the tenement must reach $250,000 in the first 12 months of the licence, with 50% spent directly on drilling.

The licence was granted in October 2005 and exploration work leading up to the current exploration program has included geological reconnaissance mapping using a helicopter, and office studies and interpretation of aeromagnetic and other data compiled in a geographical information system (GIS).

Goldsworthy Prospect Iron Ore Potential

The mined out Mt Goldsworthy iron ores included lenses of massive hematite formed by supergene enrichment of hydrothermally replaced banded iron formations (BIF) adjacent to a regional scale easterly trending fault. The host BIF unit, the Nimingarra Iron Formation, is extensive throughout E45/2358 and Polaris geologists have identified several similar structural targets within the licence area. These are now being investigated by a gravity survey.

In addition to the new CID discovery referred to above, there is also potential for a concealed CID within the extensive alluvium-covered Paradise Plains area of the Goldsworthy Syncline that is traversed by Pardoo Creek. All CID target areas will be covered by the current reconnaissance gravity survey.

Nickel, Platinum and Gold Potential

E45/2358 also has significant potential for nickel, platinum group element (PGE) and gold deposits. The licence lies on the Pardoo Fault, which is an extension of the Tabba Tabba Shear, an important structural control on PGE and gold occurrences in the region. Two kilometres to the northeast of the E45/2358 tenement boundary, the Pardoo Fault localises the Highway nickel-copper deposit (37Mt with 115,000t nickel, 44,000t copper).

Future Plans

The current gravity survey is expected to be completed and interpreted by the end of June. This work will be followed by a thorough investigation of the CID potential by mapping and rock chip sampling, with results available in July.

Drilling is then expected to commence in August, after an Aboriginal heritage survey of target areas has been completed.

The Port Hedland Port Authority and the WA Government's plan to expand public shipping facilities at Port Hedland within two years will be an incentive for Polaris to commit immediately to a pre-feasibility study if a potentially viable iron ore deposit is discovered.