GR244/13 Kulgera Heavy Mineral Project Group Annual Report for the period 14 January 2012 to 13 January 2013

Abstract

During the report year, a considerable amount of work has been completed on the Kulgera Heavy Mineral Project. The work has focused on defining the nature and distribution of the mineralisation present. The Kulgera Heavy Mineral project consists of 4 prospect areas, only one of which (Arrakis) with 622 AC drillholes and has been drill tested. The results available suggest a global resource of heavy mineral (HM) sands between 7.5 and 10 billion tonnes is achievable. Head assaying of the drill hole composite samples has shown an iron-ore quality material containing about 30% TiO2 can be made just using gravity separation methods. A drilling program and budget has been prepared for 2013 which has been designed to elevate the Inferred resource to an Indicated category and to complete the mineralogical and metallurgical studies.