Annual report for period ending 31 March 2005 EL 23862

Abstract

Matilda was granted ELA 23862 on 1st of April 2004 for a period of six years. During the period 1 April 2004 to 31 March 2005 Matilda spent $464,800 exploring for economic heavy mineral deposits within three prospects covered by EL 23862 located on Melville Island. Exploration focused on heavy mineral accumulations within the Quaternary coastal plains where previous explorers had identified HM deposits unusually rich in the valuable heavy minerals zircon and rutile. Indications were that these deposits would be small but potentially valuable for a small company because of there unusually high content of zircon and rutile, low clay content and little overburden. A number of these deposits could provide resources for profitable mining over a number of years with little capital expense. Matilda's exploration focused on drilling the known Lethbridge Bay occurrence to resource status and drill testing the Andranangoo prospect. The Lethbridge Bay prospect proved to host a small but rich zircon rutile deposit and a new discovery was made at Andranangoo. A feasibility study was completed on the mining of Andranangoo and Lethbridge Bay deposits which shows a positive outcome for both projects. There are remaining areas to be explored within this license which have similar geology and geomorphology to Lethbridge and Andranangoo.