EL 26535 Final surrender report for the period ending 31 July 2014

Abstract

In the first year of the title (2008-2009), a regional scale desktop study of the Carpentaria Project was completed by geological and geophysical consultant's Resource Potentials Pty Ltd. This study identified that the greatest potential for economic mineralisation at the project was for 'Groote Eylandt style' Mn mineralisation, and hydrothermal Mn and-or Cu mineralisation, below relatively thin Quaternary and Cretaceous cover. A helicopter electromagnetic (EM) survey was promoted as the best geophysical method to explore for conductive Mn and sulphide mineralisation below cover, and areas suitable for helicopter EM surveying were identified. A VTEM helicopter EM survey was carried out over portions of the Carpentaria Project during the 2nd exploration year (2009-2010). The VTEM survey data were processed, modelled and interpreted during the 3rd exploration year (2010-2011). Regional 1:50,000 scale maps of the VTEM data, geology, airborne magnetic and radiometric data, and satellite data were generated to assist targeting. A set of preliminary exploration targets were generated, some of which were located within tenement EL 26535. However, these were considered to represent only low to moderate rank exploration targets. Geological consultant?s CSA Global Pty Ltd were then contracted to organise and complete a helicopter reconnaissance of the preliminary exploration targets during the 4th exploration year (2011-2012). A helicopter landing was made within tenement EL 26535 during this site visit, but no rock samples were collected. No exploration work was completed for tenement EL 26535 during the 5th exploration year (2012-2013), as Sinosteel focused exploration efforts and funds on completing a Reverse Circulation (RC) drilling program at the other tenements at the project: EL 26539, EL 26556 and EL 26557. New regional and project scale desktop studies were commissioned during the 6th and final exploration year (2013-2014) to inform future exploration work. During this period, Sinosteel also updated a Mining Management Plan (MMP) and completed a second helicopter reconnaissance of exploration targets in preparation for a second round of RC drilling at the other tenements at the project: EL 26539, EL 26556 and EL 26557. This drill program was started early in the 2014-2015 exploration year. Tenement EL 26535 was surrendered at the end of the 2013-2014 exploration year, as no significant new exploration targets were identified by Sinosteel Australia within the tenement, and the tenement is considered by the company to have very low mineral prospectivity. In addition, the tenement is wholly contained within the boundaries of the Seven Emu pastoral lease, and the owner and manager of this station has made land access difficult.