Combined annual report for period ending 25 October 2011 Elliott Project EL 27186, EL 27187, EL 27189, EL 27190 and EL 27544

Abstract

The Elliott Project, located approximately 6 km west of the historic town of Newcastle Waters and 13 km west of Elliott, is a sub-project of Vale's Georgina Phosphate Exploration Project and covers Cambrian sedimentary rocks of the Wiso Basin. On the southern margin of the basin, the Cambrian rocks overly strata of the Arunta Block, whilst to the west they unconformably overly basement composed of Early Proterozoic rocks. The project area is flat lying with outcrop interpreted to be Middle Cambrian. Phosphate exploration work on Elliott in 2011 consisted of a Flora and Fauna Desktop Study Report, geophysical interpretive targeting, line clearing and reconnaissance reverse circulation (RC) drilling and drillsite rehabilitation. A Geophysical Basin Modelling Study was completed over Vale's Georgina Project, including Elliott, to gain a better understanding of the Georgina Basin and assist with phosphate drill targeting. Eight (8) holes for a total 834m and 442 composite drill samples were completed on ELs 27187 and 27190. Drilling was completed on these tenements in the previous reporting year and the assay results are provided in this report. Assay results for the 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.