Combined annual report on EL 9979, SEL 26451, SEL 26452, EL 26583, EL 26584, EL 26585, EL 26586 and EL 26589 Wonarah Phosphate Project Annual Report to 8 January 2010

Abstract

Evaluation of the tenement during the year was advanced by drilling 1066 reverse circulation percussion (RC) holes for 52,491 m and 58 diamond cored holes for 2085.4 m and submitting 16,551 split RC samples and 436 split diamond core samples for assay. This work resulted in a significant increase in the overall resource at Wonarah and the delineation of high grade areas that may be suitable for development of direct shipping ore (DSO). DSO is nominally assigned to material with greater than 30% P2O5. A full feasibility study commenced at the beginning of 2009 and this study is due for completion by the end of March 2010. As part of this study a trial sample pit was opened up at Arruwurra for the extraction of DSO-grade material for marketing purposes. This exercise was successfully completed in December 2009. The bulk sample work confirmed the geological model that had been constructed from a combination of RC and diamond drilling.