De Grey was chosen from eight applicants for the rights to the ground located near two existing iron ore deposits. The highly sought after 15.5 square km area lies 104 km south of Port Hedland and covers a 1,600m-strike length of a known channel iron deposit that straddles the Great Northern Highway.

The application is also strategically placed between other channel iron deposits 17km to the east, 2.5km to the west and 4.5km to the north. Considering the high level of activity in iron exploration and mining in the Pilbara and the proximity to infrastructure this iron
mineralisation represents significant value to De Grey.

Managing Director Gary Brabham said, ""This ground was picked up as a result of our diligent monitoring of tenements in the Pilbara. We will immediately assess the known iron deposits to evaluate their potential value and determine how De Grey may best realise that value"".

Newcrest decline as gold price tumble

The region''s largest producer by market value, Newcrest Mining Ltd''s share shed 5.3% today after the gold traded below $900 an ounce.

Asia''s third- largest bullion mining company by value, Zhongjin Gold Corp also fell 10% to its lowest in eight months in Shanghai in line with the decline in region''s producers. Lihir Gold Ltd fell 4.5%.

Gold for immediate delivery gained 0.2% to $884.54 an ounce in the afternoon after it fell below $900 an ounce yesterday for the first time in more than six weeks as the dollar rose 1.1%.

Australian companies revisit bond market

Australia''s biggest companies are taking advantage of cheaper borrowing cost by selling their securities in Europe and the U.S. as they made a return to the corporate bond market for the first time in more than a year.

Telstra raised 500 million euros in its bond offering in a year and may raise more if the rates decline more. Bloomberg news reported that Wesfarmers is likely to offer U.S. dollar denominated bonds to refinance its debt of $4 billion to takeover Coles Group six months ago.

Wesfarmers'' share gained 1.8% and Telstra was up 1.8%. Woolworths gained 3.6%, David Jones added 1.9% and Harvey Norman was up 4.5%.

Virgin Blue to undercut Qantas share on US route

Analysts today hinted that the National carrier Qantas might lose as much as $200 million in earnings after smaller rival Virgin Blue''s new international carrier V Australia becomes fully operational.

The route has been served by Qantas and United Airlines and V Australia’s entry in the market with a new Boeing 777-300ER will increase competition.

At $1,899 for a return ticket from Sydney to Los Angeles, Virgin Blues price is at least 16% less than Qantas'' best fare on the route. Qantas shares rose 4.9%.