Annual report for EL 9978 Wonarah for the period ending 29 September 2004

Abstract

EL 9978 forms part of AKD's Wonarah phosphate project, located on the Barkly Highway 260 km east of Tennant Creek in the Northern Territory, Australia. The Wonarah phosphate project was until recently a joint venture between Rio Tinto and AKD Limited. Rio Tinto was the manager and operator of the JV and from March 1999 to December 2000 spent AUD$2.5 million on exploration. Drilling by Rio Tinto in 2000 delineated an Inferred Resource of 115Mt @ 22% P2O5 for the Wonarah phosphate deposit. After further drilling in 2001, the resource was recalculated to 72Mt @ 23% P2O5 (at a cut-off grade of 15% P2O5). Drill intercepts as high as 37% P2O5 have been recorded. The known phosphate resource does not lie within EL 9978 and the only indications of phosphate mineralisation are low-grade drill hole intercepts identified by IMC in the 1970's. During this reporting period, AKD completed another review of the Wonarah data base and the economic studies undertaken by Rio Tinto. AKD also actively sought the participation of new joint venture partners to replace Rio Tinto and as a result a number of companies have reviewed the data.