Relinquishment report for EL 10416

Abstract

Exploration work undertaken on EL 10416 during the period from 13 June 2006 - 12 June 2011 was primarily aimed at identifying target areas with potential commercial resources of Amethyst or other saleable gemstones. Known areas were identified in the first year's program and their locations accurately logged. Little work has been undertaken on these areas to date, rather subsequent work has focused on identifying other potential target areas within the tenement. Much of the ground relinquished was barren of outcroppings or distinguishable geological formations necessary to identify a source of the Amethyst. Those that were visible were considered to be of poor quality or insufficient size to be economic. Considerable time was spent traversing ground to make sure of its suitability or otherwise, before a decision was made to relinquish it. The tenements size and location, coupled with our limited resources meant progress was slow. A Waiver was applied for in May 2008 to retain all 75 blocks for a further year, allowing more time to complete our evaluation ofthe ground. This was granted in July 2008. In May 2009, application was made to drop 47 blocks, reducing the tenement size to 28 blocks. In June 2010, a further waiver was applied for to retain the existing 28 Blocks. The Department of Resources subsequently advised they would only allow the retention until 22 August 2010. On August 9, 2010 a further 14 blocks (50%) were relinquished. The latest relinquishment on 15 August 2011 has reduced the tenement to 5 blocks. While we cannot assume to have found everything of possible interest, we are confident that the blocks relinquished have little chance of providing commercial gemstone deposits.