Annual report for the period 18 May 2007 to 17 May 2008 EL 22413 Baiguridji River Blue Mud Bay

Abstract

Exploration Licence (EL) 22413 Baiguridji River was applied for by Rio Tinto Exploration Pty Limited (RTX) on 11 February 2000 and was granted on 18 May 2006. RTX is the sole manager and operator of this tenement. The original tenement application covered an area of 117km2 (35 sub blocks) of which only 66.9km2 (20 sub blocks) was granted. The remainder of the application area was rejected. EL 22413 is located 150km southwest of Nhulunbuy, east Arnhem Land, and consequently is processed under the Aboriginal Land Rights Act 1975 (ALRA). This second annual report describes the exploration completed during the second year of the tenement, however this is the first year of ground work and included access track improvement and an aircore drill programme. 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. - Access track improvement - Geologic Reconnaissance - Aircore drill programme (five holes for 24m). Results for bauxite to date are not encouraging but the planned drilling program is not yet complete.