EL 26969 Annual report 3 September 2011 to 2 September 2012

Abstract

The area is considered to be prospective for phosphate and iron ore mineralisation. In January 2012 Fertoz signed an Agreement to transfer the ownership of the Hodgson Project to Ebony Iron Pty Ltd. As part of the Agreement Fertoz retained the rights to any fertiliser deposits. Ebony Iron Pty Ltd engaged Terra Search Pty to undertake a review to identify the areas likely to be prospective for Iron Ore with the intention of relinquishing the non-prospective regions at the end of the third year. Terra Search have reviewed the data sets available for EL 26969 and the surrounding area on the basis of aeromagnetics , airborne radiometrics, Google Earth satellite imagery, geology, gravity and water bore drill results. The aeromagnetic data over this tenement shows a large proportion of it is underlain by Cambrian basalt. Water bores show that there is no real potential for Roper type iron deposits to occur at economic depths under the basalt. Phosphate potential appears limited as almost all Cambrian lithologies are logged as massive limestone of the lower Tindal Limestone. Terra Search identified an area of 113 subblocks which warrant further exploration. The remainder was recommended for relinquishment. The tenements appear to be more prospective for iron ore than phosphate due to their proximity to the Sherwin Iron deposits.