First annual report for the period ending 11 September 2006 EL 4171 Cato River

Abstract

EL 4171 Cato River was applied for by BHP Minerals on 3rd October 1982 and was granted on 12th September 2005. Rio Tinto Exploration Pty Limited (RTE) signed an agreement with BHP on 27th March 2000 whereby RTE took over management of the tenement. The original tenement application covered an area of 846 km2 of which only 598.2 km2 was granted. The remainder of the area was split off into two new applications, EL 24829 and EL 24830 and put into moratorium. The tenement is located 30 km west of Nhulunbuy, east Arnhem Land and consequently is processed under the Aboriginal Land Rights Act 1975 (ALRA). This first annual report describes the exploration completed during the first year of the tenement and includes land access negotiations and drill track upgrades and construction. EL 4171 forms part of the larger contiguous tenement package in east Arnhem Land, which is prospective for bauxite. EL 4171 covers part of the Cato Plateau, which is a known area of bauxite of similar style to the nearby world class Gove deposit. Exploration activities include review of previous exploration, completion of consultation meetings and site clearance surveys, interpretation of existing TM data and clearing access track for a small drill. The drilling programme was deferred due to a community request. The drilling will now be conducted in year two.