Combined annual exploration report for GR042, EL 25222, EL 25223, EL 25224, EL 25229, EL 28970, EL 29026 and EL 29242 for period ending 8 November 2012

Abstract

During Year 6, exploration was undertaken primarily on EL 25222 of the Daly River Group. RC drilling was undertaken at Stromberg (16 RC holes were drilled for 418m with 229 samples taken and 5 diamond holes with 44 samples) and Scaramanga (7 RC holes for 220m and 165 samples). Surface geochemical samples were taken over the TUC's Daly tenements to test district wide rare earth element potential which included EL 25222 (443 soil samples), EL 25223 (1 soil sample), EL 25229 (11 soil samples and 1 rock chip sample) and EL 28970 (6 soil and 3 rock chip samples). Also metallurgical and petrographic work was completed on samples from Stromberg. Significant results were returned for the year with continued return of excellent rare earth intersections with excellent mineral distribution of approximately 85 percent heavy rare earths at Stromberg. Also heavy rare earth mineralisation similar to Stromberg was discovered at Scaramanga and a number of regional rare earth element anomalies were identified in the surface sampling program. A Lidar survey was completed over the Stromberg project to give accurate elevations for drill hole positioning and eventual resource modelling. Exploration will continue to test the projects rare earth element potential with focus on the continuation and extents of mineralisation at Stromberg as well as follow up on the anomalous results identified in the district surface sampling.