Exploration Licence 8189 fourth annual report ending 6 October 2008

Abstract

EL 8189 is situated within the highly prospective Proterozoic McArthur Basin, host to the world class McArthur River (HYC) zinc-lead-silver deposit. The application for EL 8189 was first submitted by Mount Isa Mines Ltd on 28th April 1993 over MLN's 1121, 1122, 1123 and 1124 held by McArthur River Mining Pty Ltd. The application was lodged because of concerns over: i) The adoption of the geodetic datum GDA94 leaving a 200m wide vacant strip of land between the Mineral Leases and adjoining MIM exploration licence EL 8078. ii) The validity of the Mineral leases post Mabo High Court decision in 1992. The licence, originally comprising 39 blocks totalling 109.3 sq km, was granted for a period of six years on 6th October 2003. At the end of the 2006 reporting year, a 50% relinquishment of the remaining 19 blocks was undertaken in line with the requirements of the Mining Act, leaving a total of 7.5 graticule blocks. The 2007 reduction resulted in 3 graticular blocks remaining. The 2008 reduction of EL8189 has reduced the tenement to 1 graticule block. The remaining block is still covered by McArthur River Mining's MLN 1124 which is tenured until 2018. With the total relinquishment of the earlier EL 8078 and the continued MLN tenure, the requirement for EL 8189 has been somewhat academic even though previous reporting has duly recorded any exploration activities within the licence area. This comprised exploration diamond drilling and any sub-surface activities centred on site investigations for the proposed expansion of the McArthur River zinc-lead deposit from the existing underground mine to a large scale open cut operation. The area covered by EL 8189 has been intensely explored over the past 50 years by Mount Isa Mines as part of investigations into the development of the McArthur River (HYC) deposit. Exploration activities were also conducted over the licences areas, targeting the surrounding highly prospective lithologies of the McArthur Basin. All of the prospects delineated, including the HYC deposit, have since been converted to separate Mining and Mineral Leases, formerly held by Mount Isa Mines, now Xstrata Zinc. No work was recorded against the remaining graticule blocks of EL8189 during the 2007 - 2008 reporting period.