EL 28041 Renner Springs Project Annual Technical Report Year 3, 9 December 2012 to 8 December 2013

Abstract

Exploration activity on EL 28041 during Year 3 included completion of one Gradient Array IP survey (overlap from EL 28604), RC exploration-delineation drilling at Renner Central prospect and updating the resource estimation for Renner West deposit. Four manganese prospects have been identified on EL 28041, the northern most of two Exploration Licences covering the Renner Springs Project area. The Renner North Prospect (R2): the 2012 GAIP survey covered a strike length of 2.8 km and highlighted several chargeability anomalies that were recommended for follow up RC drill testing in 2013. That drill program has been deferred until 2014. The Renner West Prospect (R6): the Inferred Mineral Resource estimation was updated for inclusion in the 31 December 2012 Bootu Creek Mineral Resource announcement. Diamond coring for metallurgical test work will be required before the Mineral Resource can be upgraded to an Indicated Resource status. The Renner Central Prospect (R8); the 2013 drill program was restricted by budget constraints to 18 shallow RC infill holes testing the northern extents of this flat lying manganese outcrop. This limited drill program identified a keel of slightly deeper mineralisation extending 20m below the generally near surface, modest grade outcropping and sub-cropping manganese mineralisation. Several separated outcrops remain limited in extent and too widely spaced to constitute a Mineral Resource without further drilling. The Renner East Prospect consists of a flat lying manganese occurrence located around 1,000 metres east of the Renner Central Prospect, with manganese mineralisation similar in character to Renner Central. There was no work on this prospect in 2013. The 2013 Carruthers Extended GAIP survey failed to identify and significant 'chargeability' anomalies within the SE corner of EL 28041. The Renner West Inferred Mineral Resource is likely to be too small to mine on its own and further drilling of adjacent manganese prospects is recommended to increase the available tonnage to that required to support a satellite mining operation.