Sixth annual and final report for period ending 9 October 2013

Abstract

This annual and final report covers EL 24821 located on the south east coast of Bathurst Island, part of the Tiwi Islands, in the Northern Territory. The area is prospective for zircon and rutile rich mineral sands however suitable exploration areas must be outside of environmentally sensitive beach, mangrove and river zones. The tenement was purchased by MZI Resources (previously Matilda Zircon) from Stirling Zircon Pty Ltd who obtained the tenements from the Administrator of Matilda Minerals in July 2009. No field exploration work was conducted in the period. All work was directed at the internal discussion and preparation of paperwork connected with the surrender of the tenement. Exploration activity in the previous period was limited to a desktop evaluation using Google Earth Pro to map the area of the sand bodies in the tenement. The methodology was to define sand bodies with an environmental offset from the beach of 200 metres and an offset of 100 metres from mangroves. This has been the offset used in earlier approved projects. The basis for a theoretical exploration target was developed from experience gathered from the previous three mining campaigns on the north coast of the Tiwi Islands. The depth of the mineralised sand bodies has been defined from mining on the north coast to be a maximum of two metres from the sand dune surface. Similarly the potential depth of mineralisation within the tenement is expected to be two metres. From previous mining programs the economic cut off for mineralisation has been determined to be 2 percent and hence this is the grade that may be assigned to a target area. Higher grades are possible but these tend to be lensoid and of limited extent. The actual area of potential sand bodies that may be mineralised was calculated on screen using the Google Earth Pro area calculation method. No significant exploration targets were identified within the tenement based on the above methodology.