Annual Combined Report GR051/09 EL 23862 and EL 24329 for the period 1 April 2014 to 31 March 2015

Abstract

This combined annual report covers EL 23862 and EL 24329 for the period 1 April 2014 to 31 March 2015 for which there is combined reporting status with the reporting date of 30 May 2015. The ELs are located on Melville and Bathurst Islands which form the Tiwi Island group in the Northern Territory. In the reporting year the primary focus of MZI Resources has been on monitoring the decommissioning of the plant located on ML 27438 which is overlain by EL 23862. Work was done by the purchaser's contractor on the plant removal by barge to Darwin and the plant reassembly at a new mining project in the Northern Territory. The removal of the support camp and the plant pad is scheduled for mid-2015 per the Mine Closure and Rehabilitation Plan (EcOz 2015). Road infrastructure requirements of the Tiwi people have been agreed and roads are to be left for traditional activity access. Planned work for the coming 12 months in the Lethbridge area (EL 23862) centres on the removal of mining camp, the preparation of a drilling MMP and the execution of an auger program at Lethbridge East and Robinson Inlet. For EL 24329 (Kilimiraka) the company plans to have a consultant prepare a drilling MMP for scout drilling on the dune sequences in 2016-17. The drilling sample library is to be relocated from Darwin to Perth for cataloguing and a mineralogical study is likely to follow. The current data on the prospect is to be benchmarked against other mineral sand projects as part of a development project. The continued downturn in concentrate prices has been a major impediment in 2014-15 to raising funds for exploration and justifying significant exploration expenditure to progress the company's prospects.