Annual report for EL 24819 for 12 month period ending 29 July 2010

Abstract

This report provides details of activities related to EL 24819 located on the eastern coast of Melville Island, part of the Tiwi Islands north of Darwin, during the 12 months to 29 July 2010. The EL is considered prospective for zircon-rich minerals sands deposits similar in nature to other larger and more extensively tested deposits on the Tiwi Islands. The EL was previously acquired and held by Matilda Minerals Ltd (MML) until they were placed into administration in late 2008. In 2009, this EL and other Tiwi Islands assets held by MML (collectively referred to as the 'Tiwi Islands Project') were transferred to Matilda Zircon Ltd ('MZL' and formerly, Olympia Resources Ltd). In July 2010, Matilda Zircon re-commenced mining on the Tiwi Islands in the Lethbridge Bay region of Melville Island. Principal exploration activities during the period were a review of previous results plus an assessment of the remaining prospectivity of the exploration assets acquired from MML. The majority of MZL resources during the period were channelled to the re-establishment of mining operations (at Lethbridge Bay). This was necessary to demonstrate the economic viability of the Tiwi Islands Project as a precursor to further resource definition within the various exploration licences. Of the 101 sub-blocks which comprised the original EL 24819, 53 sub-blocks have been deemed to have no further exploration potential. Consequently, notice was provided to the NT Dept of Resources in July 2010 that these sub-blocks be relinquished. A program of auger drilling is proposed for testing the potential of identified beach strand systems within the remaining areas of the tenement.