Annual Report EL 25688 and EL 27143 Mountain Creek Group Report GR322 for the period 20 August 2014 to 19 August 2015

Abstract

The Mountain Creek Project is located approximately 40 kilometres south of Ngukurr in the gulf country of the Northern Territory. The project group comprises EL 25688 and EL 27143, and covers an area of 715.37 square kilometres. EL 25688 was originally granted to Tianda Resources (Australia) Pty Ltd (Tianda) for six years on 20 August 2007. Tianda entered into a farm-in agreement with Western Desert Resources Ltd (Receivers and Managers) ('WDR') on 1/6/2010. During the second half of 2013, EL 25688 was transferred to WDR in full. EL 27143 was granted to WDR Iron Ore Pty Ltd, a wholly owned subsidiary of WDR, on 24th August 2009 for a period of six years. The tenement, at time of grant covered an area of 1,027 sq km (320 sub blocks). 134 blocks for 409.6 sq km were relinquished in August 2011. Both tenements are prospective for sediment hosted iron ore deposits. Some base metal potential for McArthur River style mineralisation also exists in the northern portion of EL 27143. The project area is underlain by the Maiwok Subgroup of the Roper Group of the McArthur Basin. The Roper Group of sediments consists of two sub groups, the Collara Subgroup and the Maiwok Subgroup. Sedimentary oolitic ironstone is present at several intervals within the upper part of the Roper Group, and best developed within the Sherwin Formation in the Maiwok Subgroup. Oolitic ironstone within the Sherwin Formation is the target of exploration for iron ore within the project area. No work was completed during the term, as WDR?s assets were placed into external administration on 5 September 2014. The asset is now also liquidation and is being managed by Ferrier Hodgson as Receivers and Managers of WDR.