EL 24581 Annual Report for period ending 28 July 2014

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 tenement was purchased by MZI Resources from Stirling Zircon Pty Ltd and was transferred to MZI on the 17th April 2014. 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. During the reporting period no mineral sand exploration field work was completed because the company was focused on decommissioning activities on ML 27438 located on the north coast of Melville Island. During 2013-2014 the EL area was studied for the purpose of preparing and budgeting for a drilling program. The study involved satellite interpretation of dune systems as well as collating existing drill and assay data. The drill program was designed to dovetail with the planned exploration on nearby EL 24329 and to identify sufficient ore for a mining program. Satellite interpretation has confirmed several large barchan dunes which have the potential to meet the volume exploration target for mining. Unfortunately continued depressed mineral concentrate prices are affecting the ability of the company to raise funds and finance exploration in the EL.