Annual Report for year ending 3 March 2012 EL 26812 Bonya

Abstract

No on-ground exploration activity occurred during the last reporting period. EL 26812 was granted to Arafura Resources on 4 March 2009 for a period of six years. EL 26812 is part of Arafura's Jervois project area in the eastern part of the Aileron Province in the Arunta Region, Northern Territory. The license area was acquired because this area has potential to host mineralisation styles akin to those on adjacent tenements. To date, Arafura's exploration activities in the Jervois project area have primarily focused on the assessment of Fe-V resources at the Unca prospect in the adjacent EL 10215. More recently, Arafura commenced an assessment of the Au-PGE potential of the Attutra Metagabbro on EL10215. This may have implications for EL 26812 as contemporaneous mafic intrusions are also thought to be present within this tenement. In the last period, an interested party approached Arafura to explore for other commodities in the Jervois project area. Their reconnaissance activities to date have concentrated on a number of historic prospects/workings within the adjacent EL 10215. This party has expressed a desire to explore the Jervois project area and negotiations are currently in progress.