Combined annual report for EL 26018, EL 26019, EL 27035 and EL 27037 for the period 5 December 2009 to 4 December 2010

Abstract

These tenements comprise Mantle's Barkly Project, which covers portions of the Georgina Basin on the Barkly Tableland that are considered to be prospective for phosphate mineralisation. Potential also exists for the discovery of deposits of base metals, uranium and potash in these areas. During the period, Mantle defined a program of reverse circulation drilling that includes a broad spaced pattern of drillholes within EL 26018, EL 26019, EL 27035 and EL 27037. Field reconnaissance using published topographical maps and GPS was undertaken to locate the proposed drillhole locations on the ground and confirm logistical arrangements for the drilling program. This work successfully identified accessible routes to be used throughout the project area. A program of Reverse Circulation drilling was undertaken during the period 7 to 11 September 2010. Eleven drillholes were completed for a total of 570 metres. Not all drillholes proposed (n=23) were able to be completed as a consequence of a drilling rig mechanical failure. A total of 128 combined 4-metre composite and 1-metre split drill samples were collected and submitted for laboratory testing. The best Phosphate (as P2O5) results obtained were at the top of drillhole BTRC042, which returned 0.11% P2O5 over a 13 metre interval commencing at surface. No phosphate results greater, or equal to, 0.1% P2O5 were obtained from any of the ten other drillholes completed. The significance of these phosphate values has yet to be determined and field follow-up of this intersection shall be a priority in 2011 work programmes. Possible interpretations for these values include: The hole was collared on an exposed portion of phosphate mineralised stratigraphy (the nearest drillhole is approximately 10 kilometres away); and on the regional imagery, the drillhole appears to be in a topographical low, and it is possible that (as yet untested) phosphatic stratigraphy 'upstream' may be shedding phosphatic sediment into the drainage; expressed as a low tenor anomaly. Proposed work programmes during 2011 shall include follow up field reconnaissance of the area around and above drillhole BTRC042 and the planning of follow-up drill testing. This locality, in the northeast corner of EL 27035 may have the basement stratigraphy at shallow depth, and is one of the key locations in the Mantle tenements where the Highland Plains equivalent position may be present at shallow depth. Other priority areas include areas at the NW corner of EL 26019 and the SW corner of EL 26018, where drill testing of previous phosphate anomalism (by others and Mantle, respectively) was unable to be followed up during the 2010 drilling program.