Year 2 Annual report Arthur Creek EL 27845 11 August 2011 to 10 August 2012

Abstract

NRE?s exploration program for the second term of the Arthur Creek Prospect consisted of an extensive regional assessment of the area for phosphate and base metal mineralisation. NRE also undertook a helicopter assisted reconnaissance field program over the area. The targets within the Arthur Creek Prospect areas were identified based on desk top research of regional geological and geophysical data, augmented with compilation and assessment of all previous exploration results. A majority of this tenure is covered by Cainozoic clay, gravel and soil with minor claypan however there are a number of Cambro-Ordovician Tomahawk beds within the tenure. There is currently phosphate potential in respect of Arthur Creek and it is expected that phosphate mineralisation will be quite shallow given that this tenure is located on the Southern Georgina Basin edge. Phosphate mineralisation in the tenure is further supported by the proximity of this tenure to the Marqua Phosphate Project (10m @ 14.5 P2O5 from 9m), Ammaroo Phosphate Project (20m@16.7% P2O5 from 34m) and the Arthur Creek Phosphate Project (10m@22.5% P2O5 from 40m). It would appear that eventually, a RAB/Aircore or Reverse Circulation percussion drilling would be required to test for phosphatic horizons within the tenure. During the third term, NRE is looking forward to undertaking further desktop studies to determine the possible explanation for the discrete highs and highs identified in processed imagery (including ASTER) in relation to the lack of geological observations noted during NRE?s reconnaissance program.