Final report for year ending 13 April 2012, EL 26318 Unca Hill

Abstract

No on-ground work has been done on EL 26318. Arafura's exploration activities in the Jervois project area have primarily focused on exploration and assessment of Fe-V resources at the Unca prospect in the adjacent EL 10215. In addition to this the Jervois project area is also considered prospective for base metals and gold. Arafura acquired EL 26318 because of geological similarities with the adjacent tenements in the Jervois project area. Arafura attempted to expedite exploration activities on its Jervois project area tenements via a JV agreement. Under a $8 million Letter of Intent executed on 17 April 2009, Arafura Resources and Jiangsu East China Exploration (ECE) entered into negotiations for JV covering Arafura's Jervois tenements. Unfortunately ECE did not meet its obligations and on 22 February 2010, Arafura advised the ASX that both parties had agreed to discontinue discussions on the proposed Jervois JV. Arafura continued to explore for a new JV partner, approaching several companies under Confidentiality Agreements in 2010-2011 but none were successful. Arafura conducted a project review in 2011/12 and decided to relinquish EL 26318.