Annual report for EL 25150 for period ending 29 July 2009

Abstract

This annual report covers EL 25150 which is located on Melville Island, just south from Lethbridge Bay. The tenement covers a small portion of the Lethbridge South deposit, previously defined by Matilda Minerals. During the reporting period review and reconnaissance was completed over the tenement. Obvious on strike extensions to the strands discovered by Matilda Minerals are visible. In addition a complete review of the Lethbridge and Lethbridge South deposits was completed and defined measured resources for these. A comprehensive resource review of the Lethbridge and Lethbridge South deposits has been completed and is attached as an an appendix. The southern portion of one of the strands at Lethbridge South is covered by EL 25150. The EL is located on Melville and Bathurst Islands which form the Tiwi Islands in the Northern Territory. During the reporting year the original tenement holder Matilda Minerals was placed into Administration (September 2008) and little work was completed by them. Matilda Zircon purchased the assets of Matilda Minerals in July 2009 and since then has completed due diligence and review of previous work throughout the tenements. A complete systematic review of all resources and areas of interest was completed by Matilda Zircon over all the tenement holdings on the Tiwi Islands. This systematically reclassified all the mineral sands resources and prospects within a large number of tenements. In addition a GIS review of a large number of tenements, including EL 25150 has been completed.