Annual report for EL 23862, EL 24328, EL 24329, EL 24330, EL 24331, EL 24332, EL 24333, EL 24334, EL 24335, EL 24336 Tiwi Combined Report (TI1) for the period ending 31 March 2009

Abstract

This annual report covers EL 23862 and EL 24328 to EL 24336 inclusive for which there is combined reporting status (Tiwi TI1) with the due date of 31 March 2009. The ELs are located on Melville and Bathurst Islands which form the Tiwi Islands in the Northern Territory. After four years of high levels of exploration, activities in the reporting year were restricted to planning, data reviews and data compilations due to the requirement to conserve money in the face of rapidly escalating costs at the Andranangoo Mineral Sands Mine (ML 24510); high cost of diesel, increasing environmental compliance costs, high shipping costs for exporting mineral sand concentrate, higher labour costs, combined with a high Australian dollar. In September 2008, the Andranangoo Mineral Sands Mine (ML 24510) was placed on care and maintenance due to the excessively high cost of production. In October 2008 Matilda Minerals was placed in Voluntary Administration due to cashflow problems after being unable to sell the mineral sands concentrate under existing contracts. This effectively brought to an end any planned exploration on the Tiwi Islands. Activities after this were restricted to data compilations for the Administrators of Matilda so that a data room could be established for viewing by prospective purchasers of the project. Exemption from reduction is being sought for all Exploration Licences on the Tiwi Islands as a result of going into Voluntary Administration and the need to maintain the licences in good standing during the period of due diligence whilst prospective purchasers look at the project. In February 2009, it was announced that the project had been sold with settlement expected sometime in May 2009.