Partial relinquishment report EL 26899 Flora - Daly Basin for the period 5 May 2009 to 4 May 2015

Abstract

In September 2012 the Flora River NT Airborne Geophysical Survey was flown over EL 26899 which is held by Century Hill Pty Ltd. The survey has provided high quality data which enabled detailed identification of geological structure. Radiometric data was interpreted and elevated values of U/Th identified. These anomalies were proposed to be indicators of potential Heavy Rare Earth Elements (HREE) mineralisation based on similar anomalies to the north documented by TUC Resources Limited. During the 2013 exploration year anomalous Rare Earth Element (REE) mineralisation was identified coinciding with previously identified target areas interpreted from the recently conducted airborne magnetic-radiometric survey. The results were considered low but still anomalous and follow-up work was recommended. During a helicopter field reconnaissance conducted by International Geoscience Pty Ltd in December 2012 some 11 rock samples were collected from the surrendered area. These samples were subsequently analysed by Niton XRF. Rock samples collected were IGO33, 34, 38, 39, 41, 42, 72, 73, 74, 75 and 79. A nine day field reconnaissance was conducted during the 2014 exploration year with the objective of sampling areas of coincident U/Th anomalies with Fe altered sandstone throughout the tenement. Access was limited and the more prospective area to the south was not accessed. Sampling of other areas of the tenement failed to discover elevated REE values. Some 7 rock chip samples were collected from the surrendered area, specifically S025, 048, 050, 051, 052, 053 and 054. Field Niton values showed high net values Total Rare Earth (Praseodymium, Neodymium, Cerium and Lanthanum) from portable Niton XRF of 1,000 to 2,000 ppm. Results from the NAL assays of the selected rock chip samples for Total REEs were disappointingly low in comparison with the field readings, indicating the gross inaccuracy of the Niton XRF tool due to the high iron content of the samples. Specifically sample 53 from the relinquished area was assayed by NAL showing negligible TRE. A review of data and market conditions was conducted during 2014 and the exploration potential of the area was re-evaluated by the Company. It was concluded that the barite deposits to the west remained highly prospective and further exploration would focus on the barite potential of the area. The Company has retained an area of 29 blocks to the northwest and southern area adjacent to the Dorisvale fault. An area of 30 blocks was surrendered.