Annual report for ML 24511 Lethbridge Bay West for the period ending 4 December 2006

Abstract

This annual report covers exploration completed on ML 24511 (Lethbridge Bay West) between 5 December 2005 and 4 December 2006. The ML is situated on the west side of the Aliu (Jessie) River mouth on the north coast of Melville Island part of the Tiwi Islands. ML 24511 was originally part of EL 23862. When exploration at the end of 2004 produced very encouraging results a ML was applied for over the Lethbridge area. Further exploration in 2005 defined the deposit. Ore Reserve estimates for Lethbridge Bay West are: 410,000 tonnes at 5.1 percent HM (Heavy mineral) of which approximately 86 percent is VHM (valuable heavy mineral); containing approximately 9,800 tonnes of zircon; 6,400 tonnes of rutile; 3,100 tonnes of leucoxene; and 1,100 tonnes of ilmenite. The remaining heavy mineral suite is predominantly iron oxides and laterite, aluminium silicates, and tourmaline. The heavy mineral deposits of Lethbridge Bay West are dominated by a relatively high zircon and rutile content, low slimes (average 1.2 percent) and no overburden, i.e. they occur at surface down to approximately 3m depth.