Amadeus Project EL 24704, EL 24870 and EL 24876 GR048 Annual report for the year ending 28 February 2012

Abstract

In September 2010 Cauldron submitted a new Mine Management Plan (MMP) to the department. In November 2010 the NT Government requested additional information regarding the MMP. In May 2011 Cauldron visited site to finalise the rehabilitation with a few samples not being able to be rehabilitated in the previous rehabilitation work due to rain. Photos were taken showing the rehabilitation which has occurred at site since the work was completed. In August 2011 the NT government conducted a site visit and found no major issues that needed attending to regarding the completed rehabilitation work. The MMP submitted to the Department in September 2010 proposed an RC drilling program comprising 100 holes throughout the project. During the year a number of events of a corporate nature impacted on the proposed exploration programs for the Amadeus Project. The resignation of the Company's CEO during early 2011 and a subsequent change in management and the Company structure, resulted in a re-evaluation of the Company's exploration programs and personnel. This process and the prioritisation of funds and staff to other more advanced projects in WA and SA meant that the proposed RC drilling program within EL 24876 and the greater Amadeus Project was not able to be undertaken during the reporting period. During November 2011 the Company raised further funds, $3,800,000, by the sale of non-core assets. These funds are to be used for exploration of the Company's projects in the NT and WA, including undertaking the completion of the delayed RC drilling program at the Amadeus Project.