Annual Report EL 25688 and EL 27143 Mountain Creek GR322-13 for the period 20 August 2012 to 19 August 2013

Abstract

The project is located approximately 40 kilometres south of Ngukurr in the gulf country of the Northern Territory (Figure 1). The project group comprises EL 25688 and EL27143, and covers an area of 715.37 square kilometres. EL 25688 was originally 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 earned the right to 70% interest in the project by undertaking exploration on the tenement, during the second half of 2013 EL 25688 was transferred to WDR in full and an application for renewal of the licence was submitted to the DME before the expiry date. EL 27143 was granted to WDR Iron Ore Pty Ltd, a wholly owned subsidiary of Western Desert Resources Ltd, on 24th August 2009 for a period of six years. The tenement, at time of grant covered an area of 1,027 sq km (320 sub blocks). 134 blocks for 409.6 sq km were relinquished in August 2011. Application for a Waiver from Statutory Relinquishment was sought from the Dept Mines and Resources as the relinquished area is less than the required 50% at the end of Year 2.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 reporting period have included RC drilling (32 holes, 1973m), drill sampling (1256 samples) and downhole logging (29 holes) over the Pumbaa target area in EL 27143, and downhole logging of 25 holes completed the previous reporting period in EL 25688. 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.