Partial relinquishment report for EL 23048 Roper Project, for period ending 2 December 2002 tp 1 December 2007

Abstract

The Project Area overlies Roper Group stratigraphy in the Bauhinia Shelf tectonic element of the western McArthur Basin and envelopes extensively mapped eroded ilmenite-bearing source rocks with considerable potential for large tonnage 'insitu', eluvial, colluvial and downstream detrital heavy mineral (HM) accumulations. Titaniferous dolerite sills intrude Adelaidean Roper Group sediments at a number of exposed stratigraphic horizons. The dolerites have been subject to prolonged weathering and erosion during the Tertiary and Recent epochs through to modern day wet season cycles. Due to a company restructure EL 23047 and EL 23111 were relinquished on 03rd December 2007 and EL23048 was reduced from 190 to 35 sub-blocks. A Final and full relinquishment report for EL 23047 and 23111 have been submitted and this document covers the partial relinquishment for EL 23048. Exploration activities incorporated office studies and helicopter supported field reconnaissance, 875 metres of shallow auger drilling (EL's 23048 & 23111) over 2002 to 2004, eight shallow test pit excavations with collection of pit wall channel samples (EL 23048 previously surrendered and reported). Year 2 activities included detailed analysis of laboratory results and inferred resource estimations in EL 23048 and rigorous tenement holding rationalisation with subsequent 50% EL reductions for all three EL's. Year 3 activities focussed on the further re-analysis of the past substantial amounts of exploration and analysis over all three licence areas and in assessing technology solutions to mining and product beneficiation as well as establishing a development and engineering team. Activity within year 4 mainly centered around a greatly enhanced marketing regime in Australia, Asia and Europe with several parties interested to joint venture or purchase the resource and or the company and in discussions with the NLC to grant approval for ELA 23385. The negotiations with the NLC still appear to ERD to have stalled and this tenement would greatly enhance the resource under the control of ERD. Year 5 activity has seen ERD undergoing a company restructure to satisfy the requirements of the purchaser of resources contained within EL23048 and other Roper HM Project tenements. It is anticipated that full scale exploration will resume on this lease in early 2009 to move into a mining lease under a new company. Partial field work by helicopter was undertaken on the tenement during tenure Year 4/5 with field work recommencing in Year 5 on the retained portion of EL23048. The majority of work has been completed within the remaining 35 sub-blocks and will be reported separately. The relinquished portion work 1 entailed small samples that were analysed on site for differentiation of magnetic material (titanomagnetite) and ilmenite. Sample sites were not recorded but all major drainage systems traversing the EL were assessed magnetically by hand with only titanomagnetite being identified in small quantities, once again supporting ERD's dissertation that no major movement or mobilisation has occurred of HM from the sills into the drainage system. The relinquished portions do not contain any economically viable HM within the sill stratigraphy and only titanomagnetite within the sills themselves. Following overall Roper Project data reviews, a large scale tenement rationalisation was undertaken resulting in significant reduction in tenure holding including 50% relinquishment of EL 23048 in Year 2. Due largely to the extremely favourable results received from test pit channel samples collected from dolerite regolith soils in southern EL 23048 and further technological advances being made in the beneficiation of ilmenite the upper portion of the EL is now being relinquished. A complete review of all ERD tenements and their inferred, indicated or measured resources was conducted in Year 5 with the views of the purchaser and the result is a further reduction in EL23048 to 35 SBKS (79.83 sqkm) ERD is confident that the relinquished portion of EL 23048 does not contain, or has little potential for mineable heavy mineral deposits. No ground intrusive activities were conducted on the relinquished portions of EL 23048 during tenure year 5.