Annual report MLN's 59, 60, 63, 64, 65 and 66 Mt Diamond Prospects Randford Hill Northern Territory 31st December 2006 - December 31 2007

Abstract

The Mount Diamond Prospects are located within the Pine Creek Geosyncline in the Northern Territory. It is located 65 km east of the township of Pine Creek and within the boundaries of Kakadu National Park The area was historically a mining region. The prospects cover the Mt Diamond, Hamilton and Waldens historical sites on the Mary River Station. The Mt Diamond Copper mine operated in the first half of the century and the site was re opened in the 1970's, by United Uranium. Normandy Woodcutters was the previous owner of the above mentioned tenements. These tenements were transferred to Corporate Developments Pty Ltd on the 12th of January 2001. These MLN's are current until 31st December 2013. The four main Mt. Diamond Prospects are located ndividually within the mining leases; MLN 63-MLN 66. The Waldens Prospect lies within MLN 60 and the Hamiltons Prospect lies in MLN 59. During 2007 a proposal was made by 'Outback Metals Ltd ('Outback') to acquire 'Corporate Developments Pty Ltd' the current holder of MLN's 59, 60, 63, 64, 65, and 66. In anticipation of this transaction being completed a decision was made to suspend all exploration activities until the transaction was finalised. Outback is in the process of listing on the Australian Securities Exchange. In anticipation of this Outback has engaged the expertise of Al Maynard and Associates Consulting Geologists to produce an Independent Geological Report and Hetherington Exploration and Mining Title Services to produce a Tenement Report. These consultations included an audit of the potential of the Bynoe region and recommendations for further exploration. At present Mt Diamond is a known historical copper producer with remaining copper estimates agreeing that possibly 150 00t 5% Cu, and 105 g/t Ag still exists at the site. The rising prices of copper and gold in the current market, enables the consideration of a feasibility study to commence. This study will determine if the Mt Diamond prospects can contribute and support the planned development of mining activities at the Mount Wells, also owned by the Outback Metals group of companies.