EL 24548 Yalyirimbi Iron Project Annual report EL 24548 1 December 2012 to 30 November 2013

Abstract

Ferrowest Limited carried out a due diligence process on a potential iron project on EL 24548 in March and April of 2013 and as a result of positive findings decided to acquire the Farm-in agreement for the iron rights with the tenement owners, Arafura Resources Limited, from the previous owner of these iron rights, Ngalia Resources Pty Ltd (Ngalia). Prior to a formal handover by Ngalia, that company completed a rehabilitation programme over the old drill pads and access tracks that were established for its Reverse Circulation drilling campaign in the previous reporting periods. Early in the reporting period Arafura Resources conducted a desktop study of all regional information, including borehole results from the tenement, to explore for water in the vicinity as part of their ongoing mining studies for nearby Nolan's Bore rare earth project. The results of those investigations are included in this report. Subsequent to the settlement of the acquisition of the Farm-in Right to the iron from Ngalia and the assumption of all legal rights and associated obligations, Ferrowest applied to the Department of Mines and Energy to become the operator of the tenement by lodging a new Mine Management Plan. This approval was received at the end of September 2013. Concurrently, in September 2013 Ferrowest representatives met with the Central Land Council (CLC) and the local indigenous community at Laramba on country at Napperby Station to brief them on Ferrowest's plans for the exploration of the tenement. Ferrowest assumed responsibility for an Exploration Agreement with the CLC and received approval from the local indigenous community following this meeting to allow exploration to proceed. Planning to mobilise to site to carry out a limited eight hole diamond drilling programme to twin existing holes for geological control and metallurgical samples for type ore density test work was completed. The holes were subsequently completed in mid to late October 2013, the core returned to Perth for analysis. In total eight diamond holes were completed for a total of 356.8 metres drilled. At the end of the reporting period the new upgraded resource estimate was incomplete and will be reported on in next year's report. During the various site visits 9 surface grab samples were taken from the various iron prospects with the highest iron content recovered was from sample A1 with 68.71 percent Fe, 0.67 percent Si02, 0.45 percent Al2O3 and 0.032 percent P.