Report on the Annie mine incorporating MCN 3815, MCN 3818 and MCN 3819, for the years 1994 to 2007

Abstract

MCN 3818 & 3819 were first aquired by Corporate Developments Limited (CDL) on 29th April, 1994 (who purchased the tenements from Greenbushes Ltd.) At that time of the transfer the MCN's had been granted until 12th February 1996. Corporate Development Limited reapplied and was given a 10 year renewal which ended on 12th February, 2006. The Mineral Claims were then reapplied for and granted for a term of 5 years, now expiring on the 12th February, 2011. The site of the Annie prospect comprised rocky hills of low relief interspersed by alluvial valleys. To the west of the Annie pegmatite (the surface outcrop of which was evident for several hundred metres and showed a prominent quartz outcrop about the centre of the south pit) was the Annie River; the river contains a shallow billabong of about 300 metres in length and 30 metres in width. Greenbushes had outlined an indicated reserve of about 11,500 cubic metres at a grade of about (0.12kg/cum tantalite and 0.6kg/cum Sn). Corporate Development Pty Ltd joint ventured with Softwood Plantations in relation to the development and mining of MCN's 3815 - 3820, which contained the Annie Tin/tantalite prospect, in 1995. Softwood then completed a drilling program in October 1996. The drill holes were designed to test the Annie pegmatite; data was entered by Ore Resources Services Pty Ltd. The pegmatite comprised 2 main sections:- 1. A north deposit which was found to be lower grade in both tantalite content and overall grade. 2. A southern deposit which was a zoned pegmatite with varying tantalite/tin grades and proportions. Softwood decided to proceed with the mining operation at Annie and proceed to obtain necessary approvals, and then constructed a processing plant and support infrastructure. The processing plant comprised:- - Feed ore bin and apron feeder - Conveyor from the apron feeder - Autogenous trommel (4m long with equal scrubbing and screening areas (12mm wire screens) about 1.6m diameter.) - Ore feed via chute into 2 primary jigs and 2 secondary jigs. (Knelson concentrators were installed to treat ore feed ex the secondary jigs but the screens blocked constantly with fine mica. A smaller trommel was also installed to reduce the load from the jigs onto the Knelsons). The Knelsons were removed from the plant circuit because: - The blocking of the screens, and the downtime from the manual removal of concentrates, was not efficient for the manpower required compared to the concentrate recovered. - Subsequent sampling indicated mineralisation losses after the secondary jig (and even the trommel (oversize)) was low. Following stripping of the vegetation and completion of the process plant and tailing dams and water supply dams, mining commenced using a new '950' Komatsu front end loader to dig the ore and trucks to haul the ore to the grizzly (150-200mm between bars). Water was supplied to the mining operation by recycling from the main water supply dam, with make-up water being provided from a bore located between the main water supply dam and the Annie River and 2 bores which were located about 200 metres south east of the main pit. Later, due to a financial failure of the contractor, Softwood purchased a Kato 65 tonne excavator, Euclid 22 tonne dump truck, dozer and 930 Loader as the mining fleet. The Kato easily dug the ore, and the only blasting required was a hard quartz core located in the centre of the south pit. Unfortunately, an accurate record of ore dug and overburden removed was not kept; however the overall pits are estimated to have produced about 100,000 tonnes of combined ore and waste. Accurate records were produced for production of concentrates, which was placed in 205 litre steel drums and spear sampled and assayed. The production was initially sold to Greenbushes Ltd; separation of concentrates into tin-rich and tantalite rich components was carried out by Perth-based Nagrom Ltd. Later, ex-mine concentrates were sold to HC Stark and shipped to Germany. (Tantalite was then selling at about AU$39-/lb). The ore dips north past the current limits of mining in the south pit, but as a major cutback would have been required, and grades appeared to be dropping with depth, additional mining was deemed not to be warranted. The Annie Mine was closed August 1998. Rehabilitation work was completed November 1998, apart from the removal of the processing plant, which is being retained for possible future processing of tailings etc for road construction materials. During the years 1999 to 2001 no work was completed on the MCN's. In July 2001 EL 8500 was granted over MCN 3818 & 3819. During 2001 a Joint Venture partnership was formed with Julie Corporation and MCN 3818 and 3819 were included in this joint Venture. Julia Corporation spent $250,000 in the first year on exploration. In 2001/2002 Annual Report for EL8500 by Julia Corporation includes the work done on these MCN's. In June 2003 Julia Corporation terminated the Joint Venture agreement and EL8500 was surrendered. Since 2003 to 2007 little new work has been done on MCN's 3818 & 3819.