Final report for EL 25245 for the period ending 8 September 2009

Abstract

Section 32 of the Mining Act requires the submission of a Final Report prepared by the titleholder for each surrendered exploration licence. This Final Report for Exploration Licence (EL) 25245 provides a summary of the activities carried out over the permit in the past year, including any results produced by these activities. EL 25245 is being completely relinquished by Tri-Star Energy Company because the company has determined the coal seam underlying this area is too deep to be economically mined. This licence has been part of a group of licences that were assembled to create a large area that could feasibly be exploited as a coal producing area. The area covered by the group licences will be referred to as the Project Area. Tri-Star Energy Company continues to work on the remainders of the tenures and anticipates that it shall ultimately create a large economic project. EL 25245 was granted on 13 November 2006 for a term of six (6) years. Tri-Star Energy Company is the sole titleholder and the operator of EL 25245. The work and expenditure program for EL 25245 during its third year required a geological and geophysical review of existing data and information towards determining the location of Permian coals within the Purni Formation and specifically, their depth, thickness, lateral extent and quality. It also required a seismic acquisition survey to be carried out over the Project Area. Tri-Star carried out an unconventional fourteen (14) point seismic acquisition survey over the Project Area however, none of those seismic points were located within EL 25245. Office-based studies in relation to this tenure and over the Project Area, together with the seismic acquisition over the Project Area, have indicated that the coal was too deep to economically produce within EL 25245. Tri-Star Energy Company has met all work and expenditure commitments for EL 25245 for the term of the licence.