Batchelor Project EL 9501 Annual report for period 13 September 1998 to 12 September 1999 3rd year of tenure

Abstract

The exploration has been aimed at locating a high quality resource of magnesite and dolomite for use in the production of magnesium metal. Based on the previous exploration data mineral resources were estimated. There were in the inferred category of 20.7million tonnes of 41.9 percent MgO in the form of carbonate with 9.1 percent insolubles (quartz and talc). A total of 7,044m of RC drilling in a total of 75 holes was completed and 2 diamond drill holes for a total of 242.2m were completed. The results obtained from the drilling program should allow an upgrade resources to the higher resource category. The flotation test indicates 78 percent of Magnesite concentrate, which contains of 97.5 percent Magnesite, 0.3 percent Talc and 0.5 percent Quartz. One additional gold bearing sulphide body was intersected by MRC-54 (7m at 256g-t and 1m at 4.08g-t Au) and MRC-214 (11m at 6.40g-t). Further investigation is needed.