Combined Annual and final report for year ended 21 December 2012, EL 27335 Coppock and EL 27336 Connor, Burt Plain Project

Abstract

Arafura Resources Limited was granted EL 27335 (Coppock) and EL 27336 (Connor), which together comprise the Burt Plain Project, on the 1st December 2009 for a period of six years. The exploration licenses would have expired on 30 November 2016; however both EL 27335 and EL 27336 have been surrendered. Initially EL 27335 comprised 50 sub-blocks (157.79 km2) and EL 27336 comprised 37 sub-blocks (117.0 km2). Both tenements were reduced at the end of the second year of tenure such that they comprised 25 and 18 sub-blocks respectively. Very little historical exploration had been undertaken on the Burt Plain Project area as much of the ground has a moderate cover of Tertiary and Quaternary sediments. Arafura Resources acquired the ground to explore principally for rare earth element mineralisation within the Proterozoic basement rocks. The nearby 100% Arafura Resources Limited owned Nolans Bore REE-P-U deposit was the rationale for acquiring the ground as it is believed that the basement rocks in the project area are similar to those which host Nolans Bore deposit. Exploration activities during the three year tenure comprised a GIS study and minor field work in the first year, no work in second year, and a GIS study and ground reconnaissance for calcrete and other extractive materials in the third and last year of tenure. The moderately thick sedimentary cover and lack of extractive materials led Arafura Resources Limited to surrender both EL 27335 and EL 27336.