Annual Combined Report GR051/09 EL 23862 and EL 24329 Tiwi Islands for period 1 April 2013 to 31 March 2014

Abstract

This combined annual report covers EL 23862 and EL 24329 for the period 01/04/2013 to 31/03/2014 for which there is combined reporting status with the reporting date of 30 May 2014. The ELs are located on Melville and Bathurst Islands which form the Tiwi Island group in the Northern Territory (see Figure 1). During the 12 month period a dispute between Stirling Zircon Pty Ltd and MZI Resources Limited was settled with an agreement to finalise the Tiwi Island titles transfer to MZI Limited. In the reporting year the primary focus of MZI Resources 'the company' has been on the sale and decommissioning of the plant located on ML 27438 which is overlain by EL 23862. A preliminary sales contract has been entered into and the plant is expected to be removed in 2014 allowing the final rehabilitation of the site. An agreement on the roads to be left and the removal of the camp building has been entered into with the Tiwi Land Council and the Tiwi College. Planned work for the coming 12 months in the Lethbridge area (EL 23862) centres on the removal of plant and a desktop evaluation of the remaining prospectivity. The company has continued turtle and flora monitoring at the Kilimiraka project within EL 24329 (South) as part of a long term plan to have an EIS approved and to develop a mine site at the location. Work planned at Kilimiraka (EL 24329) is focused on the reporting of environmental data to ensure a complete data set for an EIS in the future. The continued downturn in concentrate prices has been a major impediment in 2013/14 to raising funds for exploration and justifying significant exploration expenditure to progress the Kilimiraka prospect.