Partial relinquishment report for EL 26534, June 2010

Abstract

Sinosteel Australia Pty Ltd. was granted the exploration license for tenement EL 26534 in August, 2008. Tenement EL 26534 covers an area of 926km2 and consists of 284 blocks (1 minute blocks). The project area is located approximately 15km east of the Helen Springs settlement and 18km from the Renner Springs roadhouse, situated along the Stuart Highway. The tenement is considered prospective, mainly for Manganese mineralisation, as it adjoins the Bootu Creek Mn mine tenement. Within the tenement area, the mapped geology is mostly Quaternary cover of sand, colluvium and alluvium. The thickness of the Quaternary cover is not known. Mapped to the south of the area, are rocks of the Proterozoic Upper Tomkinson Creek Group, which host the Bootu Creek Mn mineralisation. The Tomkinson Group is a succession of shallow marine and continental sedimentary rocks that form the Ashburton Province of the Tenant Creek Inlier. The Bootu Creek Mn mineralisation is hosted within the Bootu Creek and Attack formations within this succession and it is possible that these formations extend under cover, to the north, into tenement EL 26534. Since the tenement was granted, a desk top study was undertaken that included reprocessing of open file geophysical and remote sensing data, and an airborne electromagnetic (AEM) survey was flown over the S-SW portion of the tenement in February, 2009. The area of the AEM survey is shown in the attached maps for graticules to be relinquished. No AEM data were acquired in the area being relinquished at this time. All available datasets were integrated, to produce a bedrock interpretation of the tenement area. From this interpretation it was deemed unlikely that the Tomkinson Group sediments extend into the N-NE portion of the tenement and so that area is being relinquished. Exploration is continuing in the prospective target areas identified within the AEM survey area. No ground work was completed over the relinquished area and no new data were acquired. Expenditure for the area to be relinquished is $50,000, which was mainly for the desktop study and administration costs. The 2008/2009 expenditure report is appended to this document. The area to be relinquished consists of 178, 1-minute blocks and 13, 5-minute blocks. The blocks to be relinquished are labelled in the attached maps and tables.