Annual report on EL10421 Fenton, year ended 29 August 2002

Abstract

The area covered by EL 10421 was identified as being prospective for limestone flux to be used in the production of magnesium metal near Batchelor. The results of all relevant previous exploration were compiled and assessed. A programme of field sampling of outcropping limestone was carried out. Eight rock chip samples were taken for geochemical analysis. Equally importantly the extensive field reconnaissance established that significant areas of the EL do not have any outcropping limestone and the few floaters and sub-crops that are present appear to be of low quality and unsuitable for use as a flux to process magnesite to magnesium metal in the Batchelor Magnesium Project. Some of the samples from areas of outcropping limestone do exhibit good quality characteristics and are likely to be suitable for use as a flux. More detailed evaluation of the limestone has been postponed pending the completion of metallurgical testwork relating to the Batchelor Project, grant of environmental approvals for the Project and further progress on the definitive Feasibility Study for the Project. For these reasons the expenditure commitment has not been met in full. However the tenement has been voluntarily halved in size relinquishing those areas considered to have low potential for limestone of the requisite quality