EL 24819 Annual Report for period ending 28 July 2012

Abstract

This annual report covers EL 24819 located on the east coast of Melville Island. During the reporting period no mineral sand exploration work was completed because of the exceptional circumstances the company found itself in. The company's processing plant was completely destroyed by fire in July 2011. The EL is located on Melville Island, part of the Tiwi Islands, in the Northern Territory (see Figures 1a and 1b). The area is prospective for zircon and rutile rich mineral sands however suitable exploration areas must be outside of environmentally sensitive zones. The tenement was purchased by MZI Resources (previously Matilda Zircon) from the Administrator of Matilda Minerals in July 2009. It is recommended the tenement EL 24819 be relinquished as the previous work has considerably reduced the potential of the tenement to contain an economic sized resource of mineral sand. Management is considering the work program presented to meet the DOR requirements and a decision is expected within 8 months.