Annual report EL 25026 15 August 2012 to 14 August 2013

Abstract

The Burrundie Iron Ore and Base Metal Project covers an area of approximately 30km2 and is located 180km south of Darwin within the Pine Creek Orogen. The area has excellent infrastructure including sealed and unsealed roads and rail. Several meter wide, hematite rich gossans have been traced over a distance of 800m with peak grades of 60.8% Fe and 0.3% Zn from laboratory XRF analysis on rockchips. The gossans are inferred to be located on a tightly folded, west dipping dolerite/sediment boundary which can be traced south on magnetic data for over four kilometres. This indicates the possibility of major strike extensions of the known mineralization to the south along the contact. Within the same tenement, open file records indicate the presence of a further gossan line to the west (BMR, 1954) and grades of up to 24.6% Cu have been reported from a banded gossanous sample in the tenement area (Mookhey, 1971). None of these locations have been found to date further enhancing the future prospectivity of the area. The author believes that the potential exists to rapidly define a small economic iron ore resource (~1 mt) in particular in light of the grades of the material, the infrastructure in place and the close proximity to a multi-user port facility in Darwin. A moderate resource (> 1 mt) cannot be ruled out based on the potential strike extensions of the known mineralization and analogies to the Frances Creek series of Helene 2 - 5 deposits can be drawn (1.7 mt @ 60.9% Fe). The base metal potential within the tenement is perceived as moderate to good based on the current evidence. Little exploration has been carried out in the search for these metals in recent times and the application of modern geophysical exploration techniques should be used as a prerequisite to explore the area further. In essence, the discovery of multiple wide gossan horizons provides a major opportunity to rapidly establish an iron ore resource in a superb location as well as providing the potential for a major base metal discovery at depth or along strike. A 1000 - 2000m RC drilling program was planned to establish an iron resource over the prospect. Due to the current downturn in the industry and global economic situation the financial backers for the project pulled out. Further mapping and drilling of the gossan is recommended.