3rd Annual exploration report for EL 23698 6th Aug 2005 to 5th Aug 2006

Abstract

The EL was granted for a period of six years and is contiguous with Bootu Creek Project tenure through exploration licence application EL23699A. Previous work on the EL was limited to desktop analysis of the licence area and comprised review and interpretation of available data. Exploration activity being undertaken by OM Manganese for 2006 (forecast at $2.0 million) is by necessity being focussed on defining and expanding the current resource base in close proximity to the newly developed Bootu Creek manganese mining operation. Emphasis will shift back to the more regional tenure such as EL 23698 in 2007. Work conducted on the EL includes investigation of suitable reconnaissance geophysical techniques, geological review and investigation of multi-spectral data.