Annual combined report for EL 23862, EL 24328, EL 24329 for period ending 31 March 2010

Abstract

This combined annual report covers EL 23862, EL 24328 and EL 24329 for which there is combined reporting status with the due date of 31 March 2010. The ELs are located on Melville and Bathurst Islands which form the Tiwi Islands in the Northern Territory. In the reporting year the primary focus of exploration was to review the extensive tenement holdings on the Tiwi Islands and to keep those tenements with resource potential and relinquish those where is was felt the prospectivity was low. Significant reduction in the number of subblocks of all tenements was completed during the reporting period following a review of all areas. Exploration on the licences subject of this report was restricted to review of the geological setting, the re-estimation of all resources within the tenement and additional environmental review to clarify a number of issues. A GIS landsat study to identify any additional targets was also completed and a radiometric anomaly across large portions of Melville Island was reviewed via a helicopter reconnaissance program. A number of samples were taken and the conclusion was that the radiometric anomaly corresponded with suboutcropping portions of the Van Dieman Sandstone. Planned work for the coming 12 months revolves around aircore drilling of the One Tree Point large dunal sand mineralisation located within EL 24329, the commencement of mining activities at Lethbridge Bay and the re-evaluation of the Puwanapi mineral sands resource within EL 24328 and the Wangati resource within EL 24329. Further work to identify the environmental constraints within EL 23862 for the mining of the Goose Creek East, Goose Creek West and Radford Points deposits also needs to be completed. These resources are all located within 200 metres of the active beach or 100 metres of mangroves and or wetlands and comprise high grade zircon and rutile deposits. At present they may be sterilised from mining due to buffer zones and environmental constraints.