Roper Project EL 24655 Third annual report for period 17 February 2008 to 16 February 2009

Abstract

EL 24655 was granted to Mr. Geoff Fanning on the 17th February 2006 with ERD Pty Ltd, a Darwin based resource sector company, as the designated Project Manager. The tenement covers 43 sub-blocks (approximately 130 sq km) which abut and complement an existing large tenure holding in EL 24986 and EL 23048 to form a collective but non contiguous Roper Project Area. Group reporting status was approved by the Department of Business, Industry and Resource Development (DBIRD) in 2008. EL 24655 was transferred to ERD and the company itself sold to Maxwealth International Investment Limited, registered in the British Virgin Islands in late 2007. The company has been completely restructured and a new business plan written to include all current tenement and associated exploration and small mine management plans. EL 24655 now forms a core EL for the company and permission to waiver reduction was submitted to the Department in early January 2008 to allow the restructure to be completed and for this EL to be fully evaluated. Exploration has continued throughout the year on the EL and samples submitted to several interested Chinese parties. China Industrial Resources Co, Limited has requested a bulk sample from this area of 10,000 ton of heavy mineral to allow for a re-tooling of their operations in the production of titanium slag. The request accompanies this report as Appendix 1. Consequently an amended SMMP and accompanying Risk Management Plan will be submitted in early 2009 for approval to generate the bulk sample. Should the test be successful this company will immediately apply for a mining lease over the area with further exploration to define areas of greater importance. The company has been successful due in large to officers within the Mines Division in obtaining Company Sponsorship Status with DIAC (Department of Immigration and Citizenship) to allow the importation of technology and engineering skills that will allow both the bulk sample and sample processing to occur. The skills involved are not currently available in Northern Territory or Australia wide. The Project Area overlies Roper Group stratigraphy in the Bauhinia Shelf tectonic element of the western McArthur Basin and envelopes extensively mapped eroded ilmenite-bearing source rocks with considerable potential for large tonnage 'insitu', eluvial, colluvial and downstream detrital heavy mineral (HM) accumulations. Titaniferous dolerite sills intrude Adelaidean Roper Group sediments at a number of exposed stratigraphic horizons. The dolerites have been subject to prolonged weathering and erosion during the Tertiary and Recent epochs through to modern day wet season cycles.