Partial relinquishment report for the end of year 5, 16 February 2008

Abstract

The Arunta Project is located approximately 250km NNW of Alice Springs in the Northern Territory. The North Arunta Province is dominated by a series of sulphidic Palaeoproterozoic sedimentary sequences intruded by granite plutons and mafic sills. Quaternary and Tertiary cover conceals large areas of bedrock in the area however the region has seen exploration for a variety of commodities including gold, base metals, iron ore, uranium and diamonds. Work by Proto Resources & Investments Ltd on EL23392 has focussed the prospectivity of priority GEOTEM and ground SMARTEM targets within the licence area. As such, it is recommended that Proto execute a 50% reduction relinquishing those sub-blocks outside of the area of interest. Exploration completed during the current reporting period has involved the acquisition of a further moving-loop EM survey the results of which identified a further conductive anomaly 200m along strike from B1. This data is unavailable as the area of interest is to be retained by Proto.