Combined annual report for period ending 2 September 2001, EL 9976, EL 22167 and EL 22168 Wonarah

Abstract

The report detail exploration activities during the reporting period. An initial program of exploration drilling was undertaken by RTE between August and November 2000. Drilling was successful to intercept the phosphate unit to the south of IMC Developments' 1970 inferred resource at depths of 30 to 60 m below surface. Drill hole data indicated the presence of higher-grade P2O5 than previously encountered by IMC drilling in the north. Inferred Mineral Resource of 115 Mt at 22 percent P2O5 (15 percent COG) was estimated in April 2001 for a 23 km2 area of mudstone phosphorite within the southern portion of the deposit. These must be regarded as provisional with several aspects needing additional investigation. Further exploration drilling was undertaken by RTE between May and June 2001. Drilling within and near the deposit identified from 2000 drilling indicated more complex phosphate distribution than previously recognised and re-estimation of the resource will now be necessary. A separate area of shallow medium-grade phosphate was also located in the southwest of the granted tenement. Results of work conducted to date are encouraging. However, no further work will be conducted on the tenements until studies demonstrate economic viability of the project.