Third Annual Report ML 27422, 22 December 2013 to 21 December 2014

Abstract

Australian Ilmenite Resources Pty Ltd (Receivers and Managers Appointed) ('AIR') is an independent ilmenite developer focused on the ilmenite and magnitite-bearing soils from dolerite sills of the Roper Gulf Shire. Its primary asset is the Roper Heavy Minerals Project ('Project'), located off the Roper Highway, near Mataranka in the Northern Territory ('NT'), Australia. The Project lies in the central-western Bauhina Shelf of the McArthur Basin and is located ~475km south-east of Darwin. The Project consists of 18 Exploration Licence Applications ('ELA'), 22 Exploration Licences ('EL') including a Substitution Exploaration Licence (SEL), and 2 Mineral Leases ('ML'), covering Australian Ilmenite Resources Pty Ltd (Receivers and Managers Appointed) ('AIR') is an independent ilmenite developer focused on the ilmenite and magnitite-bearing soils from dolerite sills of the Roper Gulf Shire. Its primary asset is the Roper Heavy Minerals Project ('Project'), located off the Roper Highway, near Mataranka in the Northern Territory ('NT'), Australia. The Project lies in the central-western Bauhina Shelf of the McArthur Basin and is located ~475km south-east of Darwin. The Project consists of 18 Exploration Licence Applications ('ELA'), 22 Exploration Licences ('EL') including a Substitution Exploaration Licence (SEL), and 2 Mineral Leases ('ML'), covering a total area of circa 14,535 square kilometres that spans across the Roper Gulf Shire. The two MLs are located on Namul Namul Station in the Roper River District. In April 2014, a resource drilling program of 133 aircore holes was undertaken in the northern part of ML 27422. A potential paleo-channel system was recognised that would add to the resource, however, the majority of the samples were not processed. Geological mapping of ML 27422 was also undertaken with the aid of a very recent high resolution satellite imagery. The Property was placed into 'Care and Maintenance' in July 2013 and therefore no mining has been conducted in this reporting period. A further resource definition program was undertaken in October and November 2014. The purpose of this program was to move the known ilmenite resources into JORC categories. This included using material from 29 of the April 2014 aircore drill program for process testwork and possible inclusion in the resource database, 3 bulk samples that were homogenised and split for reference standards, mapping and sampling 24 trenches (19 previous and 5 new trenches), excavation of 15 pits for bulk density measurements and samples and 7 shallow aircore drill holes to bedrock for resource validation purposes. A total of 3360 samples from the trenching, bulk density pits and drilling were shipped to Perth for processing by Australian Mineral Laboratories ('AML'). In summary, trench mapping, drilling and sampling confirmed that ilmenite mineralization often extends below the original, pre-ML auger drilling, thus increasing tonnage potential. The trenching within the Mining Lease also shows that the ilmenite grade is not restricted to red soil but extends into the black soil regolith.