Partial relinquishment report for EL 9979 Wonarah, for the period ending 30 January 2005

Abstract

This final report summarises exploration activities completed on relinquished portions of EL 9979 during the period 31st January 2002 to 30th January 2005. The tenement forms part of a project area held by AKD Limited being explored for large tonnage phosphate deposits. Since March 1999, Rio Tinto was AKD's joint venture partner and spent AUD$2.4 million in exploration over the JV tenements. Rio Tinto withdrew from the JV in December 2002. Exploration Licence 9979 was granted on 30th January 2002 and therefore no drilling was completed by Rio Tinto over this tenement prior to grant and prior to Rio's withdrawal. Interpretation of the available data on open file suggests deep low grade phosphorite and excessive overburden. Poor drill grades encountered in the 1970's by previous explorer, IMC, rules out any potential for economic phosphate resources in these areas.