Combined annual report for the period 1 November 2009 to 31 October 2010, covering mining tenements ML 24727, ML 25087, ML 25088, ML 25152 and ML 25396

Abstract

Reverse circulation drilling during the reporting year totalled 54 Reverse Circulation holes for a total of 4,671 metres. There were a total of 10 geotechnical diamond drill holes completed for 833.20 metres during the reporting year. All holes were completed on ML 24727. There were an additional seven (7) vertical Water Monitoring RC drill holes completed for 211 metres. All holes but one (1) was completed on ML 24727, with a sole hole being completed on ML 25088 (near the Ochre Hill deposit). A total of 4,882 riffled reverse circulation samples were collected at 1 metre intervals and logged, of which a total of 1,265 were assayed. Extensive fieldwork was conducted by Earth Sea Heritage Surveys during the reporting period to identify Significant Sites, predominantly on ML 24727 where most ground disturbance was conducted. Resource models were updated by Territory Resources Limited personnel for the entire Jasmine deposit area, the Thelma 1 deposit and the Thelma-Rosemary deposit (the latter deposit is not yet JORC-compliant and requires more drilling). All existing Mineral Resource models re-optimised using improved open pit optimisation parameters and new Mineral Resources and Ore Reserves for the Mine became available at 31 October 2010, using a lower 50% Fe ore block cut off.