Fourth annual and final surrender report for the period 20 April 2012 to 10 March 2016 EL 23287 Mud Bay 2

Abstract

This is the Fourth annual and Final Surrender report for EL 23287 (Blue Mud Bay 2). Exploration Licence EL 23287 (Blue Mud Bay 2) was granted on 20 April 2012 to Rio Tinto Aluminium Limited. This tenement was originally part of application ELA 1163 (Blue Mud Bay) and was split out as an application in its own right on the 27 June 2001 following the granting of a reconnaissance exploration permit by the Northern Land Council (NLC) under instructions from the traditional landowners in October 1998. EL 23287 was granted over an area of 107.1 km2 (32 blocks) which is approximately 15% of the original application (ELA 1163). A first relinquishment of 13 sub blocks was completed on the 2 October 2014. Rio Tinto Exploration Pty Limited (RTX) has an agreement with Rio Tinto Aluminium Ltd whereby RTX manages and explores the licence areas. The main target mineral is bauxite. The tenement is located approximately 120 km southwest of Nhulunbuy in north-east Arnhem Land and is processed under the Aboriginal Land Rights Act 1975 (ALRA). Exploration conducted during the period 20 April 2015 to 10 March 2016 is the only field work conducted within the licence. This work which was completed in October 2015 included: Approximately 6km of mapping traverses; 2 rock samples; 4 hand auger holes with 6 samples collected. The results show that there is a small area of preserved lateritic land surface however the material is very silica and iron rich with no evidence of bauxite being formed. The results from the mapping and sampling are sufficient to downgrade the potential of this licence to contain any bauxite and hence it has been surrendered in full.