Annual report for period ending 17 May 2007 EL 22413 Baiguridji River

Abstract

Exploration Licence (EL) 22413 Baiguridji River was applied for by Rio Tinto Exploration Pty Limited (RTE) on the 11th of February 2000 and was granted on 18th May 2006. RTE is the sole manager and operator of this tenement. The original tenement application covered an area of 117 km2 (35 sub blocks) of which only 66.9 km2 (20 sub blocks) was granted. The remainder of the application area was rejected. EL 22413 is located 150 km southwest of Nhulunbuy, east Arnhem Land, and consequently is processed under the Aboriginal Land Rights Act 1975 (ALRA). This first annual report describes the exploration completed during the first year of the tenement and includes geologic and previous exploration reviews, land access negotiations and work programme development and meetings. EL 22413 forms part of the larger contiguous tenement package in east Arnhem Land, which is prospective for bauxite and base metals. EL 22413 covers part of the subtle plateaus south of the Frederick Hills, and east of the Mitchell Ranges. This area has undergone a similar geomorphological history to that of the Cato Plateau, which is a known area of bauxite mineralisation of similar style to the nearby world class Gove deposit. The area is also considered prospective for base metal mineralisation similar to that of McArthur River (HYC) in the McArthur Basin. Diamonds are a subsidiary target. Exploration was focused on: - Review of previous exploration. - Review of geology and geomorphology. - Work programme development. - Completion of consultation meetings. Carrying out the work programme was deferred due to the consultation meetings being completed in late September 2006, by which time the field season was rapidly closing. Mapping, access track construction and drilling will be conducted in year two (2007).