Combined annual report for period ending 25 October 2011 Brunchilly project EL 27191, EL 27192, EL 27546, EL 27547, EL 27612, EL 27613 and EL 27614

Abstract

The Brunchilly Project, located approximately 90 km northeast of Tennant Creek, is a sub-project of Vale's Georgina Phosphate Exploration Project and covers a sequence of Cambrian sedimentary rocks of the Georgina Basin. The sedimentary rocks of the Georgina Basin range in age from Late Proterozoic to Early Palaeozoic. Outcrop is limited with basement concealed beneath Tertiary sediments. Phosphate exploration work on Brunchilly in 2011 consisted of a Flora and Fauna Desktop Study Report, geophysical interpretive targeting, line clearing and reconnaissance reverse circulation (RC) drilling and drill site rehabilitation. A Certificate from the AAPA was obtained for ELs 27546, 27547, 27612, 27613, 27614. A Geophysical Basin Modelling Study was completed over Vale's Georgina Project, including Brunchilly, to gain a better understanding of the Georgina Basin and assist with phosphate drill targeting. Sixteen (16) holes for a total 2038m and 1075 drill samples were completed on ELs 27191, 27192, 27547, 27613 and 27614. Assay results for 2011 RC drilling will be available in the next reporting period. Further drill targeting using RC drill results and geophysical modelling studies is planned for the 2011-2012 reporting period.