Annual report for EL 23862, EL's 24328-24336 incl for the period ending 31 March 2007

Abstract

This annual report covers EL 23862 and EL 24328 to EL 24336 inclusive for which there is combined reporting status with the due date of 31 March 2007. The EL's are located on Melville and Bathurst Islands which form the Tiwi Islands in the Northern Territory. In the reporting year the primary focus of exploration was to establish additional Resources for the Andranangoo and Lethbridge projects (ML 24510 and ML 24511 respectively). Consequently exploration focused on EL 23862 on Melville Island, where on-ground exploration was completed on Goose Creek East, Goose Creek West, Andranangoo Creek East, Radford Point, Lethbridge Bay South, and Robinson Inlet East prospects. Preliminary exploration on Bathurst Island occurred on selected targets within EL 24329 where on-ground exploration was carried out on One Tree Point (Bathurst South), Wangati South, Wangati North, and Atauini Point prospects. Exploration on the other licences was restricted to mineralogy and HM analyses and office studies. In October 2006, mining commenced at Andranangoo Creek West within ML 24510, formerly part of EL 23862. Establishment of the mine took the focus off exploration for a time during the dry season as field crews assisted in mining-related activities, including an extensive grade control drilling program. During the year Resource estimates were completed for Goose Creek East, Goose Creek West, Andranangoo Creek East, Radford Point and Lethbridge Bay South prospects (EL 23862). The second anniversary of EL 23862 occurred on 01 April 2006 and Matilda successfully applied to waive reduction of the licence area, thus the EL continued during this reporting year as the original 134 blocks. In March 2007 the area of EL 23862 was reduced by 50% with 67 blocks being retained and 67 surrendered.