Group annual report for EL 26028, EL 26029, EL 26030, EL 26031, EL 26183, EL 26362, EL 26363, EL 26419, EL 26572, EL 26579, EL 26921, EL 26922, EL 26923 and EL 26949 reporting period 10 April 2011 to 9 April 2012 GR108

Abstract

The McArthur Basin Combined Reporting Area is situated within the highly prospective Batten Fault Zone of the McArthur Basin. The exploration target for MMG is lead-zinc deposits in carbonates of the McArthur Group. Since commencement of the Option and Joint Venture Agreement with Westgold Resources Ltd and its wholly owned subsidiary Castile Resources Pty Ltd, MMG has conducted a systematic desktop review of past exploration, processing and re-interpretation of regional geochemical data (stream sediment and soil), and regional structural interpretation aimed at generating exploration targets. This work was commissioned as part of MMG?s ongoing project generation programme. Dr Steve King from Solid Geology Pty Ltd completed a review of the regional structural interpretation of the McArthur Combined Reporting Area Tenements in May 2011. He was able to produce solid geology maps interpreting the Proterozoic geology under cover where possible to aid in the generation of exploration targets. Based on his interpretation it was found that the blocks being relinquished did not fall within favourable geological environments for MMG?s target lead-zinc deposits in carbonates of the McArthur Group. In 2011 the central northern portion EL 26029 was mapped, and a reconnaissance field trip was conducted to the Southern McArthur Basin.