First annual report for EL 22744 Arrla Bay 1, EL 22708 Arrla Bay 2, EL 24657 Arrla Bay 2a and EL 22707 Arrla 3, period ending 5 June 2006

Abstract

The Arrla Bay Project consists of four granted Exploration Licences (EL) 22744, 22708, 24657 and 22707 that were applied for in 2000 by Rio Tinto Exploration Pty Limited (RTE). A further 6 applications that are in various stages or the granting process also form part of the project. The tenements are located approximately 60 km northeast of Oenpelli in north west Arnhem Land and consequently are processed under the Aboriginal Land Rights Act 1975 (ALRA). The tenements are considered prospective for lateritic bauxite mineralisation, similar to that at Gove with a subsidiary target being diamonds. The tenements mostly lie on lateritic weathered Cretaceous sediments of the Arafura Basin. Outcropping basement of Proterozoic granites and metamorpics also occur. Exploration completed during the reporting period has focused on access negotiations and work programme clearances. No on ground work was conducted.