Annual report for EL 25150 for 12 month period ending 29 July 2010

Abstract

This report provides details of activities related to EL 25150 during the 12 months to 29 July 2010. EL 25150 is located at the southern end of Lethbridge Bay on the northern side of Melville Island, part of the Tiwi Islands north of Darwin. EL 25150 contains the southern tip of the 'Lethbridge South' defined ore body which is scheduled for exploitation in the near future. 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, MZL commenced mining operations on the Tiwi Islands, beginning at the north-western end of Lethbridge Bay on Melville Island. Principal exploration activities within EL 25150 during the reporting period have been a minor amount of infill resource drilling and a comprehensive resource assessment of the Lethbridge South deposit. Of the 2 sub-blocks which comprised the original EL 25150, 1 sub-block has been deemed to have no further exploration potential. Consequently, notice was provided to the NT Dept of Resources in July 2010 that the EL be reduced to a single sub-block. A Minerals Lease Application, MLA 27438, has been lodged to cover the area of proposed mining at Lethbridge South and occupies a portion of the remaining EL 25150 area.