Annual report on EL 25794 from 11 June 2013 to 10 June 2014

Abstract

During the reporting period, a technical review of the project area was under taken. It involved data processing and interpretation of geochemical sampling and assaying programs undertaken during 2012 and 2013 reporting years. Reviewing of all exploration data available was imperative in reaching a decision to undertake drilling, particularly in current difficult environment what exploration industry is facing. In addition, a number of field visits were undertaken for ground-truthing. Processing and interpretation of available data has identified areas which have recorded significant concentrations of LREE, Y and Zr within the Quaternary sandy loam. This Quaternary sandy layer blankets much of EL 25794 and appears to be 10's meter thick. Spatial distributions of REE, Y and Zr also demonstrated that eastern part of the project is much more prospective, perhaps due to geological control of Mount Chappell Metamorphics, as compared to western part of the project area. Information presented in the report also suggests that mineralisation is open along strike and down dip. It is recommended that company should undertake drilling campaign which may identify significant areas of REE, Y and Zr mineralisation within the project area.