EL 24851 Annual Report for period ending 28 July 2015

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. Prior to the transfer MZI had been managing exploration on the tenement since 2009 on behalf of Stirling Zircon. 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 completing decommissioning activities on ML 27438 located on the north coast of Melville Island. During 2014/15 the EL area was studied for the purpose of incorporating it in a wide ranging exploration program. The future drill program is to incorporate several tenements and has been designed to fully test the dune mineralisation along the south coast of Bathurst Island from surface to basement. Unfortunately continued depressed mineral concentrate prices are affecting the ability of the company to raise funds and finance exploration in the EL. In the next period the proposed drill program shall be redrafted and re-budgeted and a Mining Management Plan (MMP) executed so that exploration drilling is able to be executed in 2016/17 when funds are expected to be available. It is recommended tenement EL 24851 be retained in the 2015/16 period.