Final report for EL 9477 Mallee Snake, for the period 6 July 1998 to 22 January 2010, Pendragon Project

Abstract

This is the Final report on EL 9477 for the period 6 July 1998 to 22 January 2010. The tenement will be replaced by SEL 26925, which has been applied for over the area. This report and all data should remain confidential until all replacement tenure over the area has expired. It was important for ATH to ensure that there is a reasonable amount of exploration land to include with the TMJV/Groundrush Mining Leases as a saleable package. If we reduce the ATH landholdings in the vicinity of the TMJV/Groundrush Mining Leases and processing infrastructure, the likelihood of securing a sale to an established junior Mining Company or Initial Public Offerings may be diminished. In addition, all of the area covered by the project area is considered prospective for gold mineralisation similar to the Tanami, Twin Bonanza, Old Pirate & Groundrush deposits and any purchaser will require time to effectively evaluate the exploration potential of the area. Further to our recent discussions with the Department of Regional Development, Primary Industries, Fisheries and Resources, Newmont Australia Limited (Newmont) anticipates recommencing the divestment of the ATH exploration tenements and TMJV/Groundrush mining leases in the second half of 2009 subject to an improvementin market conditions. Since the last report a purchase agreement has been signed and the divestment process has been initiated. During 2010 Newmont is planning to continue with its environmental auditing of ATH tenements to ensure the success of previous rehabilitation of exploration disturbances.