Annual report for the period 18 May 2008 to 17 May 2009 EL 22413 Baiguridji River

Abstract

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) gained consent. The remainder of the application area did not gain consent, and was subsequently relinquished. In 2008, 50% of the granted tenement (10 blocks) was relinquished. EL 22413 is located 150km southwest of Nhulunbuy, east Arnhem Land, and consequently is processed under the Aboriginal Land Rights Act 1975 (ALRA). This is the third annual report and describes the exploration completed during the third year of the tenement. Work was to include shallow drill testing of the low laterite surface, however due to rig availability and access issues this was not completed prior to wet season. EL 22413 forms part of a 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 to test the low laterite surface for bauxite was attempted but was not successful due to rig availability. Issues with a river crossing to access the prospective area also hindered the programme. A meeting was held at Gan Gan on the 16th December 2008 to discuss the work programme and project with the Traditional Owners. Testing of the target is planned for late 2009 dry season when access is most likely possible.