GR244 Heavy Mineral Project Group Annual Report for the Period 14 January 2011 to 13 January 2012

Abstract

In October 2011, a field trip to the license area was made for the purpose of collecting soil samples. The trip was also made so that geologists employed by Ao-Zhong could see the prospect area and become familiar with the prevailing conditions. In all a total of 50 samples were selected from along the road side but away from the actual road way. The processing and assay work done on the 50 samples has demonstrated that screening and high-intensity magnetic separation is capable of producing a concentrate containing all of the commercially significant minerals. The total volume of the sample was reduced to about 13.5% of the original which represents a significant saving in terms of the amount of material that needs secondary refinement. Some additional metallurgical test work is underway to assist in planning next years' proposed drilling program.The very limited data available suggests that a high-grade iron product (96% Fe2O3) and a high-grade iron - titanium product (Fe2O3 55%, TiO2 35%) can be produced. Both concentrates have very low impurity levels.