Annual report for the period 6 June 2007 to 5 June 2008, EL 22744 Arrla Bay 1, EL 22708 Arrla Bay 2, EL 24657 Arrla Bay 2a and EL 22707 Arrla 3

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 (RTX). A further six applications that are in various stages of the grant process also form part of the project. The tenements are located approximately 60km northeast of Oenpelli in north-west Arnhem Land and consequently are processed under the Aboriginal Land Rights Act 1975 (ALRA). The tenements were originally considered prospective for lateritic bauxite mineralisation, however the drilling reported in the previous annual report has greatly downgraded the potential. The tenements still have uranium and manganese potential. Lateritised Cretaceous sediments of the Arafura Basin extend over most of the tenement area. Outcropping basement of Proterozoic granites and metamorphics also occur. Exploration completed during the reporting period included access negotiations on the surrounding tenement applications and discussions with GA (Geoscience Australia) regarding participation in their proposed Pine Creek multi-client airborne EM survey. No ground work was conducted.