EL 24851 Annual Report for period ending 28 July 2013

Abstract

This annual report covers EL 24851 located on the south coast of Bathurst Island, part of the Tiwi Islands, in the Northern Territory (see Figure 1). The area is prospective for zircon and rutile rich mineral sands however suitable exploration areas must be outside of environmentally sensitive beach, mangrove and river zones. The tenement was purchased by MZI Resources (previously Matilda Zircon) from Stirling Zircon Pty Ltd who obtained the tenements from the Administrator of Matilda Minerals in July 2009. During the reporting period no mineral sand exploration field work was completed because the company was focussed on mining activities on ML 27438. The EL area was subjected to a desktop review by the company's new chief geologist in conjunction with the senior geologist. The aim of the review was to identify 1 million tonnes of ore at a target heavy mineral grade of 2% in a discrete area. These assumptions are explained further in the exploration section of this report. Contained in the EL are several large barchan dunes which have the potential to meet the volume exploration target. A drilling MMP was prepared during the period based on the desktop review. However the drilling MMP has been withdrawn following the most recent management input which has concluded further exploration expenditure shall be made in conjunction with work on the adjacent EL 24329 (Kilimiraka). It is recommended tenement EL 24851 be retained in the 2013/14 period and the withdrawn MMP be redrafted and resubmitted to the DME so exploration work may be conducted in conjunction with drilling work at EL 24329.