Amadeus Project EL 24870, Partial surrender report for the period 16 July 2010 to 15 July 2011

Abstract

This report details the exploration activities carried out over recently relinquished parts of Cauldron licence EL 24870, part of the Amadeus Project in the Northern Territory, during the period 16th July 2010 to 15th July 2011. Work during this period included research, data base compilation, field reconnaissance and target generation. In June 2011 Cauldron proposed to drop 40% of EL 24870 for failing to meet expenditure commitments in the 2010/2011 financial year. As a result a variation of covenant was requested by the DOR. In July 2011 the variation of covenant was accepted by the DOR and Cauldron completed a partial surrender where 112 sub blocks out of the current 298 sub blocks that comprise EL 24870 were dropped. Cauldron deemed these sub blocks to be less prospective for sediment-hosted uranium mineralisation. This ground was relinquished in July 2011. EL 24870 currently has 186 sub blocks remaining.