Annual report Mt Diamond Ranford Hill MLN 59, MLN 60, MLN 63, MLN 64, MLN 65 and MLN 66 for the years 200 to 2007

Abstract

Normandy Woodcutters was the owner of the tenements MLN 59, 60, 63, 64, 65 and 66 covering the Mt Diamond, Hamilton and Waldens historic sites on Mary River Station. The tenements were transferred to Corporate Developments Pty Ltd on 12th January, 2001. These MLN are current until 31st December, 2013. Mount Diamond is located in siltstone, phyllites and quartz-biotite hornfelses of the Lower Proterozoic Burrell Creek Formation, close to the Mt Davis Granite. The lode system has a strike length of 2600m and width varies from 1 to 3m in mineralization sections and up to 9m wide in barren sections. Strike direction varies from 140, with a 60 to 80 southeast dip, to 165 in the granite where the dip is near vertical. The lode walls are commonly sheared and sericitised. The orebody consisted of a series of high grade ribbon-like sections separated by lower grade areas. The ore mineralogy was quite diverse with chalcocite, covellite, erratic arsenopyrite, pyrite, cuprite, malachite, azurite, limonite and minor galenobismuthinite and sphalerite in the supergene zone. Primary ore minerals were chalcopyrite, pyrite, galena and bismuth, antimony and silver sulphides. Brecciated, quartz-cemented, magnetite was the dominant gangue with streaks of chlorite and feldspar near granite. The Mount Diamond deposit was the largest producer in the Ranford Hill district. Mineralization was discovered in 1898 and the mine operated until 1920. Some dump material was treated in 1930 and the last period of operation was from 1970 to 1973 by United Uranium NL. United Uranium NL acquired the property and initiated a diamond drilling programme which lead to mining in 1970. Mine access was via a 1 in 5 gradient decline and ore was transported by truck to the mill at Moline. Development extended down to approximately 100m below the surface over a strike length of approximately 330m. The mine closed in January, 1973. Reported production was 25,000t of 10% Cu, 0.1% As, 0.2% Bi, 136g/t Ag and 0.2g/t Au. After the closure in August 1973, two diamond drill holes were drilled by the NT Mines Branch to test for mineralisation approx 150m below the former mine workings. Different evaluations of the mine after its closure reached similar conclusions. These stated the reserves were 140,000 tonnes at 5.6% Cu and 105 g/t Ag with 50,000 tonnes of additional likely after further exploration. No significant work has been conducted at Mt Diamond since the Mines Branch drilling programme except for literature research done by the previous title holders Normandy Woodcutters. Normandy Woodcutters Limited completed a rehabilitation program on site and the mine was then filled with water, but should be accessible if pumped dry. All of the surface infrastructure has been removed from site. In addition, it appears the landowner has recently bulldozed the area and filled in the majority of cuts and scraps. Aztec resources, a subsidiary of Normandy Mining, carried out an assessment of the resources, including consideration of earlier work previously carried out by Mc Phar Geophysics. Aztec concluded the prospect of mining and treating the resources could be uneconomical. Corporate Developments purchased the projects from Normandy as part of an overall strategy to acquire resources around Mt Wells in an endeavour to support the commencement of mining at Mt Wells. However, up until recently, feasibility studies carried out by Corporate on the tin and copper resources at Mt Wells have indicated the potential for commencing mining at Mt Wells was difficult to substantiate. Recent rises in the prices of tin and copper have now substantially reinforced the case for a new mining operation to commence at Mt Wells, and feasibility studies are proposed. The Mt Wells and Mt Diamond projects form an important part of Outback Metals multi-commodity focus; Outback are presently completing documentation for a $10m capital raising, with part of the funds aimed at progressing the Mt Wells & Mt Diamond projects to production. A recent sampling programme was carried out at Mt Diamond to ascertain possible values of minor metals (eg. Indium) at Mt Diamond.