Combined annual report Cato Project for the Period 14 October 2008 to 13 October 2009 EL 4170 Cato Plateau and EL 4171 Cato River

Abstract

EL 4170 Cato Plateau and EL 4171 Cato River were applied for by BHP Minerals Pty Ltd (BHP) on 3 October 1982. EL 4170 was granted on 14 October 2004, EL 4171 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. An amendment to this agreement was signed on 21 December 2007 which gave Rio the rights to explore and mine for bauxite and BHPB the equivalent rights to manganese. The original EL 4170 tenement application covered an area of 593.5km2 of which only 57.0km2 was granted. The remainder of the area was split off into a new application, EL 24389 and put into moratorium. The original EL 4171 tenement application covered an area of 846.0km2 of which 598.2km2 was granted with the remaining areas split off into new applications (ELA 24829 and 24830). 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 and manganese. This combined annual report describes the exploration completed during the fifth tenure year of EL 4170 and the fourth tenure year of EL 4171. Exploration was conducted by both Rio Tinto for bauxite and BHPB for manganese. The simultaneous activities form part of the amended 2007 agreement. By far the most activities conducted during the year were by BHPB focussed on manganese. The details of this work including raw data and recommendations are in the report by BHPB. 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. The area is also prospective for manganese. Exploration for bauxite was limited during the year to the completion of the drilling on the Cato East Plateau (EL 4170) and collection of 20 rock samples within EL 4171. A total of 310.5 metres in 52 vacuum drill holes were conducted on the Cato East plateau. These holes targeted pisolitic bauxite on a remnant outlier of the main Cato Plateau. The results of the drilling confirmed the presence of bauxite however all holes were high silica(>15% SiO2). Assay results for the rock samples collected on EL 4171 have not been received to date Manganese work by BHPB included a small EM survey and drilling of 21 RC holes.