Purni Coal Project Combined annual report for the period ending 31 August 2010

Abstract

A combined annual report for the Purni Coal Project comprised of Tenements EL 27094, EL 27100 to EL 27110 and EL 27114 is presented. The Tenements are located in the Pedirka Basin approximately 340km south west of Alice Springs. The licences are operated by Merlin Coal Pty Ltd. The exploration objective within these tenements has been directed to coal exploration and work has included a review of all available data including water bore data and existing seismic data. The work has resulted in the creation of depth maps to the Top Purni Coal horizon. Other exploration has included researching and compilation of a prospectivity analysis of other economic target minerals. A mineral stratigraphic drilling programme has been planned in EL 27094, EL 27109 and EL 27114. Four holes are planned to establish the lateral continuity of coal already drilled in the area. This programme did not commence within the first permit year.