Roper HM Project EL 22478 Ninth annual report for period 10 August 2009 to 9 August 2010

Abstract

EL 22478, EL 22479 and EL 22480 were granted on 9 August 2001 to Mr G Fanning under an Agreement with Exploration and Resource Development Pty Ltd (ERD), a Darwin based resource sector company. At this stage ERD was the designated Project Manager. EL 22478 is now granted to ERD after tenement transfer in early 2008 following a sale of the company and a complete restructure of its operations. ERD was sold to Maxwealth International Invest Ltd in late 2007 and immediately underwent a complete company restructure in late 2007/early 2008 to allow the new owner to fully identify and modify the business plan of the organisation. Marketing was commenced to obtain development partners and seek new technologies to look at not only mining of the resources held by ERD but also the further beneficiation techniques currently available or coming on stream such as the CSIRO Light Metals Project. EL 22478 was transferred from Geoff Fanning to ERD during this restructure period. On 5 February 2009 ERD changed its name to Australian Ilmenite Resources Pty Ltd (AIR). Directors from AIR visited China and Japan with the NTG delegation in May 2008 and met with several potential development partners including Sinosteel Corporation, Beijing, Fu Shun Titanium Company Ltd in FuShun, NE China, the Yunan Titanium Association and Itochu Corporation in Tokyo, Japan. All of these organisations are looking at joint venture/ farm-in agreements to drive the further development of the contained resources. A second visit was undertaken during the term of this report in 2009 to cement relationships with potential Chinese investors. The area contained within EL 22478 has also been identified by AIR as having the potential to host Westmoreland/Murphy style of unconformity uranium deposits despite its cretaceous age. An exploration program within this tenement is planned along with others of the Roper HM Project Area to further identify targets for drilling with high resolution radiometric data. Initial analysis of the available coarse ternary radiometric data has identified several potential areas of clustered anomalies. A plan to extract and process 10,000 ton of ilmenite concentrate has been submitted to the Department and AIR currently awaits approval for this SMMP. A moderate drilling program to support large scale metallurgical sampling using a soft tyred bobcat with a 100mm auger is planned for 2010/2011. Several field trips to collect samples were undertaken before a trip to China to provide data and further information on chemistry to Fu Shun Titanium who are expected to revisit the site in mid 2010. Further field trips have been undertaken with Directors of TNG Limited to assess joint venture opportunities. Sampling was completed by helicopter and vehicle on well used station tracks and only non-magnetic material was taken with no evidence of the sampling remaining. All sites were fully rehabilitated by brushing the disturbed surface of current tracks. No holes were dug, rather the material was taken from the wind rows alongside the station track. A comprehensive geological and data review in Year 9 by AIR for TNG Limited of all of its identified resources resulted in further identification and regime localisation proximity of insitu heavy mineral accumulations. AIR still awaits its 'Authority to Explore' before this years program can be implemented. This information, when coupled with the current inferred/indicated and measured resources discriminated within the remaining portion of EL 22478 indicate that a moderate resource is available for mining studies to commence. Diamond exploration included an assessment of previous efforts by various companies against the Departmental diamond database. Heavy Mineral Exploration included mapping, a small sampling program and reassessment of the results against current company databases while marketing trips with members from the Shandong Dongjia Group, Fu Shun Titanium and TNG Limited were undertaken. Sampled product was also shipped to two other interested parties in China for evaluation. Uranium exploration has included large scale mapping and interpolation of existing datasets to identify anomalies within the lease area as well as investigations into past reports available within the Departments open file reports. Iron ore exploration has included a small helicopter based geological survey and sampling program to assess the geology, extent and content of the Sherwin ironstone member in the EL.