Combined annual report for period ending March 2010 MLN 164, MLN 165, MLN 196, MLN 197, MLN 198, MLN 199, MLN 200, MLN 463, MLN 465, MLN 466, MLN 467, MCN 723, MCN 2631

Abstract

Tin was found at Mt Wells in 1880 and has been worked sporadically since. Mt. Wells is located on an elevated hill containing six known en-echelon, tin and copper mineralised lodes comprising tension-fill quartz veins striking 015 - 025 up to 1km and dipping 75-85 east. Previous work on the Mt Wells deposit has estimated a possible underground target of 737,000t averaging 1.38 % Sn, and a further open cut target of 400,000t grading 0.4% Sn. The area was worked mostly by Chinese from 1901 to 1929 and the Commonwealth Government constructed a battery and gravity treatment plant in the 1960s. Jingellic Minerals and the Northern Territory Mines Department were active in the 1970s and Territory Resources undertook an RC drilling program in 1989 before selling the Mt Wells leases to Softwood Plantations in 1994. Outback Metals purchased Softwood Plantations in 2008 and immediately undertook a drilling program consisting of 34 RC holes for 2907m and 1756 samples. A resource estimate based on the new and historical drilling has been delayed due to potential understating of the Sn assay grades of the 2008 drilling. To address this issue, a program is currently in place to re-assay all available RC samples from mineralised sections of the 2008 drill holes. Additional work undertaken in the reporting period includes field mapping in June 2009 to identify possible extensions of the Mt Wells lodes. A total of 27 rock samples were assayed primarily for Sn and Cu, with 3 samples indicating an extension of the East lode. All work during the reporting period was on the central deposit area covered by MCN 723 and MLN 165, MLN 196, MLN 197 and MLN 467. No work was performed on the leases that surround the central deposit area, MCN 2631 and MLN 164, MLN 198, MLN 199, MLN 200, MLN 463, MLN 465 and MLN 466 as mine planning and infrastructure work on these leases is dependent on completion of the current resource estimate. Tempest electromagnetic data was acquired from Geoscience Australia over the area of EL 22301. Several prospects were visited on the EL.