EL 25068 Annual report for the period 8 August 2006 to 7 August 2007

Abstract

EL 25068 was originally applied for by Nicholson Iron Pty Ltd on the basis of the known iron occurrences mapped within the permit area that have never been extensively studied. Extensive potential iron resources are known to occur within the Queensland portion of the South Nicholson Basin. These resources are largely 'sterilised' due to the establishment of the Lawn Hill National Park (in Queensland) after the initial evaluation of the region by BHP in the late 1950s and early 1960s. The permit was the subject of a Option Agreement between Nicholson Iron and Sirius Resources Pty Ltd. An extensive remote sensing study was commissioned and undertaken by Earthscan Pty Ltd. On the basis of this study Sirius Resources undertook a helicopter-borne reconnaissance survey of the permit area by three experienced geologists. Sirius Resources was particularly interested in the channel iron potential of the area. The results of the reconnaissance survey were deemed to be negative however and Sirius Resources withdrew from the option agreement having fulfilled the Year One permit expenditure commitment.