EL 29142 Annual report for the period 15 May 2012 to 14 May 2013

Abstract

The rationale for applying for EL 29142 and other Red Dog tenements are coal seams intercepted in Permian age Bonaparte Basin Kulshill Group sediments from drilling for coal and petroleum. Global Ore Discovery (GOD) reports that multiple coal intersections greater than 0.4 metres are reported with the greatest net coal thickness from historic drilling of 4 metres. The latter result was coal seams intercepted in drill hole Keep River-1 within EL 29010. Intercepts of coal seams are concentrated to the northeast of the Red Dog Project. The geological target is at least 100 million tonnes of thermal coal resources amenable to open pit mining. Red Dog Project is favourably located less than 100 kilometres from the deep-water port of Wyndham. The location in Northern Australian offers a competitive advantage for shipping costs compared with thermal coal shipped to Asian destinations from the Port of Newcastle in New South Wales. The work program for the year ending 14 May 2013 was restricted to desktop studies, commissioning of reports from consultants, including a proposed exploration program for Red Dog Project. A Technical Report from Global Ore Discovery highlights the prospectivity of Red Dog Project and is supportive of the proposed Y-2 exploration programme. The aim of exploration is to test the thesis that significant reserves of thermal coal may occur in the Lower Permian Kulshill Group. An interpretation of the geology suggests that coal finds might be amenable to open pit mining.