Third Annual Report GR275/15 Incorporating EL 28291, EL 29675, EL 28893 and EL 28896 for the period 9 February 2014 to 8 February 2015

Abstract

On 28 July 2014 Janna Robertson and Scott Kershaw of KordaMentha were appointed as Receivers and Managers of AIR ('he Receivers') pursuant to security interests duly registered with the Personal Property Securities Register. Since the appointment of Receivers AIR undertook regional reconnaissance mapping and sampling over an extensive area of EL 28291 that identified four target areas of ilmenite potential. In October and November 2014, AIR undertook a JORC compliant resource definition drilling and sampling program of ML 27422 and EL 28291. The program was managed by a leading mineral sands industry expert, TZ Minerals International Pty Ltd (TZMI). Aircore drilling was completed across the four target areas in October 2014 as part of JORC compliant resource definition drilling and sampling program. In total 247 holes were drilled for 699m in 4 blocks on nominal 200m x400m and 200x 200m spacings. A total of 836 samples, including reference standards and duplicates, were sent for heavy mineral processing. Holes were drilled to bedrock varying from 0.7m to 12m depth but mostly 2m to 4m depth. Samples were geologically logged at 1.0m downhole spacings and regolith interpretation carried out. In total 46kms of cleared lines were required for the drilling. The exploration program undertaken on EL 28291 is set out in section 5, 6 and 7 of this report. Incomplete reconnaissance geological mapping and stream sediment sampling in the central and northeast parts of EL 28291 has outlined further extensive areas of heavy mineral-bearing regolith that require further exploration. Stream sediment sampling has identified two large multi-element Ti-Mg-Mn-REE-base metal Co-Cr-V-Zr-Hf anomalies that warrant further exploration and analysis to determine their potential to host hard rock mineralisation. In February 2015, the Department of Mines and Energy approved an application by AIR for the granted exploration tenements to be included under an Exploration Project Area.