Annual Combined Report GR051/09 EL 23862 and EL 24329 for period 1 April 2012 to 31 March 2013

Abstract

In the reporting year the primary focus of the company has been on the operating mine in ML 24511 which is contained within EL 23862. The company was previously mining at ML 24510 (Andranangoo) approximately 10 kilometres to the west of its Lethbridge South mine in an area which abuts EL 23862. The company completed mining at ML 24511 in January 2013 and the mine site is currently on care and maintenance. The company has progressed environmental work on the Kilimiraka project within EL 24329 (South) by commissioning and submitting a notification of intent (NOI) for the Kilimiraka Mineral Sands Project. Additionally a MMP for a proposed drilling program has been submitted to the DME. It is anticipated the drilling program shall be executed once the MMP is approved and all legal issues limiting work on the project have been resolved. During the 12 month period a legal dispute arose regarding the ownership of the Tiwi Island tenements. The dispute is between Stirling Zircon Pty Ltd and MZI Resources Limited and is centred on the transfer of ownership documents which went missing between the stamp duties being paid and the registration of the change of title ownership. The dispute has been heard in the Supreme Court of WA and a settlement is being negotiated. Planned work for the coming 12 months depends on the resolution of legal issues and approval of the MMPs for exploration. Once these issues are resolved further drilling at both ELs is planned. Environmental monitoring at EL 24329 is ongoing to provide a basis for environmental proposals.