Partial relinqusihment report, McNichol EL 27647

Abstract

NRE's exploration activities during the term of the permit and in particular, in relation to the relinquished area, consisted of both office-based and field activities. NRE completed two (2) reconnaissance helicopter assisted field trips of the Barkly Project, one in July 2010 and the other in October 2010. One (1) sample (sample number 3007137) was collected from within the relinquished area, iron coated, and quartz rich sands dominate the area. No significant levels of any element were detected. NRE also engaged Terra Search Pty. Ltd. to attend the Northern Territory's Darwin Core Facility to analyse a number of cuttings available from historically drilled water bores within its project areas. There were no water bores located within the relinquished area however NRE tested those water bores within the retained area and surrounding tenements in order to gain a better understanding of the region. Activities conducted to date have indicated that the phosphate horizon within this tenement is deepest within the areas nominated for relinquishment and the areas covered by this Partial Relinquishment Report. NRE also believes that these areas are the least prospective areas for uranium and diamond mineralisation.