Annual report Year 4 EL 27175 28 September 2012 to 27 September 2013

Abstract

Work undertaken during the reporting period included the processing of the remaining loam samples collected in the previous reporting period. The processed samples returned one potentially kimberlitic chromite grain (12-006-017) with the rest of the samples all returning negative results. Following a review of historic and recent sample results the proposed ground geophysical surveys were not undertaken. The Company's exploration on a nearby licence (EL 25676) has identified that chromites are entrained within alluvial material that may be derived from a distal (ie secondary) source. When the results from EL 25676 and EL 27175 (and another of the Company's Licences EL 27750) are considered in a regional sense it is evident that the chromites may be part of a dispersion trail originating from EL 25676. To validate this hypothesis it is necessary to excavate costeans and obtain samples of alluvial material within EL 27175 and EL 27750. The proposed ground geophysical surveys were designed to identify a local primary source and hence were not considered appropriate at this time.