EL 29550 Annual Report for Year 1 Batchelor Project period 1 August 2012 to 31 July 2013

Abstract

This is the First Annual Report for the EL 29550. The tenement is a result of amalgamation of several exploration licences and it constitutes the Batchelor Project operated by Korab Resources Ltd. EL 29550 was granted on 1 August 2012 and was an amalgamation of previous ELs 24818, 24855, 25133, 25135, 25136, 27683, 27875, 28348 and 28867. In Year 1, work concentrated on mapping the outcrops of Mt. Deane Volcanic unit (MDV), collecting rock chip samples from outcrops (8 samples were collected and assays are still pending), site verification and preparation for drilling the MDV unit, update to the feasibility study for the development of the Winchester magnesite deposit conducted by Bateman-Tenova Pty Ltd, digitising of past data, compilation of geochemical data base from sampling conducted over the past years, digitising of the stream sediment sampling completed in prior years, review of the TEMPEST electromagnetic data and gravity data from government data base and surface geochemical sampling data against the geochemical data from drilling completed in prior years to prioritise the drilling targets. Review has shown the potential buried conductors associated with faulting and elevated base metals in soil and chips, wide-spread nickel and copper/cobalt anomalism associated with MDV unit and pervasive lead, zinc, copper and nickel anomalism in the drainage from the ridge where MDV is outcropping despite its relatively poor outcrop in places. Occasionally MDV outcrops but it occurs in difficult terrain and mapping is difficult. The data collected in field is still being converted to digital format. Field mapping of MDV also is difficult because it is obscured by Acacia Gap quartzite. The update of feasibility study for production of the magnesium metal has shown that it is not economic at current labour costs and energy costs despite the magnesium price having risen considerably since the last review in 2001-2002.