Combined annual report Cato Plateau for the period 14 October 2007 to 13 October 2008 EL 4170 Cato Plateau and EL 4171 Cato River

Abstract

Exploration Licence (EL) 4170 Cato Plateau and EL4171 Cato River were applied for by BHP Minerals Pty Ltd (BHP) on 3 October 1982. EL 4170 was granted on 14 October 2004, EL4171 was granted on 12 September 2005. Rio Tinto Exploration Pty Limited (RTX) signed an agreement with BHP on 27 March 2000 whereby RTX took over management and ownership of the tenements. The original EL 4170 tenement application covered an area of 593.5km2 of which only 57.0km2 was granted. The original EL 4171 tenement application covered an area of 846.0km2 of which 598.2km2 was granted. The remainder of the area was split off into a new application, EL 24389 and put into moratorium. The tenements are located 30km west of Nhulunbuy, east Arnhem Land and consequently are processed under the Aboriginal Land Rights Act 1975 (ALRA). Combined reporting of EL 4171 and EL 4170 was granted on 3 August 2007, and called the 'Cato Project'. The Cato Project forms part of the larger contiguous tenement package in east Arnhem Land, which is considered prospective for bauxite. This combined annual report describes the exploration completed during the fourth tenure year of EL 4170 and the third tenure year of EL 4171. The Cato Project covers a spur of the Cato Plateau, which is a known area of bauxite of similar style to the nearby world class Gove deposit. It also covers extensions of subtle, coastal plateaus and a small isolated plateau. Exploration is focused on testing the area for bauxite. Work completed during the period included assaying of the grab samples from 2007 work programme and track preparations for the 2008 field season drilling. Negotiations with BHPB to modify the joint venture arrangements were completed. The key outcome of the new agreement is that Rio Tinto has the full bauxite rights and BHPB has the full manganese rights over this project. Their rights will allow for simultaneous exploration activities for manganese within EL 4170 and EL 4171. The manganese exploration will form a large part of the next field seasons expenditure. BHPB will be required to submit an annual report on activities which will be incorporated into the statutory report.