Partial relinquishment report on EL 4170 'Cato Plateau', for the period 14 October 2006 to 13 October 2007

Abstract

EL 4170 Cato Plateau was applied for by BHP Minerals on 3 October 1982 and was granted on 14 October 2004. Rio Tinto Exploration Pty Limited (RTX) signed an agreement with BHP on 27 March 2000 whereby RTX took over management of the tenement. The original tenement application covered an area of 593.5km2 of which only less than 10%, 57.0 km2 (28 blocks) was granted. The remainder of the area was split off into a new application, EL 24389 and put into moratorium. The tenement is located 22km southwest of Nhulunbuy, east Arnhem Land and consequently is processed under the Aboriginal Land Rights Act 1975 (ALRA). This is the first relinquishment of EL 4170 which includes 12 blocks (43%) relinquished. A waiver has been sought for the remaining area. EL 4170 is part of the Cato Project, which is comprised of EL 4170 and EL 4171 and was granted combined reporting status on 3 August 2007. The Cato Project forms part of the larger contiguous tenement package in east Arnhem Land, which is prospective for bauxite. EL 4170 covers part of the Cato Plateau, which is a known area of bauxite of similar style to the nearby world class Gove deposit. Exploration was focused on testing the area for bauxite. Stream sampling for diamonds was a secondary opportunistic target. Work completed on the relinquished area includes: - Review of previous exploration. - Completion of consultation meetings and site clearance surveys. - Interpretation of existing TM data. - Establishment of an exploration camp. - Collecting three gravel diamond indicator and five -80# stream sediment samples.