Annual report on ERL 134 Batchelor Project, year ended 10 October 2008

Abstract

ERL134 covering 9.74 km2 of ground is one of the tenements in the Rum Jungle Mineral Field near the town of Batchelor, collectively referred to as the Batchelor Project. The tenements form a contiguous exploration ground prospective for unconformity-type uranium mineralisation, and magnesium, gold and base metal mineralisation. The majority of this licence falls within land wholly owned by Stanley Corporation (WA) Pty Ltd and, although permission was given to access the land, the conditions imposed by the landowner were excessive. This resulted in Korab Resources lodging a Plaint with the Department on 22 April 2008. Korab Resources requested that the Warden determine the conditions under which access would be allowed onto the subject land to allow exploration to take place. As access to the land has not been allowed there was no field work undertaken during the reporting year. Since the Plaint was lodged the landowner has put the affected land on the market and is seeking a price of $5M for the two land sections that it owns. This has further delayed matters involving access to the land. The licence area requires further detailed field mapping, comprehensive sampling and drilling. However, this cannot be carried out until the landowner issues have been resolved.