Annual combined report for EL 23862, EL 24328 and EL 24329 for period ending 31 March 2011

Abstract

This combined annual report covers EL 23862, EL 24328 and EL 24329 for which there is combined reporting status with the due date of 31 March 2011. The ELs are located on Melville and Bathurst Islands which form the Tiwi Islands in the Northern Territory. In the reporting year the primary focus of exploration was to gain access agreements and develop a strategy to drill test the heavy mineral content of Kilimiraka, previously known as One Tree Point on EL 24329. Access to drill the deposit was agreed to by the Tiwi Land Council in November, 2010 and a proposed drilling programme was designed. Johansenn Drilling were engaged to undertake the drilling. Several trips were made to the tenement to assess access and to determine the type of rig to use in the drilling. In December an attempt was made to undertake the drilling project but this proved to be quite difficult as the are is very steep and sandy and vehicular access was not possible. Exploration on the licences subject of this report was limited by access agreements, availability of suitable drilling rigs and commitment to mining of the Lethbridge Bay deposit. Planned work for the coming 12 months revolves around further shaell and baler drilling of the Kilimiraka large dunal sand mineralisation located within EL 24329, the commencement of mining activities at Lethbridge South, re-evaluation of the Puwanapi (EL 24328) and Wangati mineral sands resource by further sampling within EL 24328 and the Wangati resource within EL 24329. Continuing work to identify the environmental constraints within EL 23862 for the mining of the Goose Creek East, Goose Creek West and Radford Points deposits also needs to be completed. These resources are all located within 200 metres of the active beach or 100 metres of mangroves and or wetlands and comprise high grade zircon and rutile deposits. At present they may be sterilised from mining due to buffer zones and environmental constraints.