Annual Report EL 25688 Tianda Joint Venture for the period 20 August 2011 to 19 August 2012 Year 5

Abstract

EL 25688 is located approximately 40 kilometres south of Ngukurr in the gulf country of the Northern Territory. EL 25688 was granted to Tianda Resources (Australia) Pty Ltd (Tianda) for six years on 20/8/2007. Tianda entered into a farm-in agreement with Western Desert Resources Ltd (WDR) on 1/6/2010 over this EL. WDR has earned the right to a 70% interest in the project by undertaking exploration on the tenement. WDR is the manager of the project. The tenement is prospective for sediment hosted iron ore deposits. The exploration licence is located within the boundaries of the former St Vidgeon pastoral lease, now crown land, which is excluded from Limmen National Park. Native Title has been granted over the former St Vidgeon pastoral lease and therefore affects the tenement. The project area is underlain by the Maiwok Subgroup of the Roper Group of the McArthur Basin. The Roper Group of sediments consists of two sub groups, the Collara Subgroup and the Maiwok Subgroup. Sedimentary oolitic ironstone is present at several intervals within the upper part of the Roper Group, and best developed within the Sherwin Formation in the Maiwok Subgroup. Oolitic ironstone within the Sherwin Formation (local name - Sherwin Ironstone Member or SIM) is the target of exploration for iron ore within the project area. Exploration activities conducted during the fourth year of tenure have included an airborne gravity survey (615 line km), mapping, rock chip sampling (12 samples), RC drilling (81 holes, 2360m), drill sampling (1975 samples) and downhole logging (9 holes). Most drill holes intersected the target Sherwin Formation with grades that require beneficiation, however the Pumbaa prospect has been identified as having potential for small tonnages of high grade mineralisation. Numerous new targets have been identified using the airborne gravity data, which are yet to be drill tested.