Fourth Annual Technical Report ML 27422 for the period 22 December 2014 to 21 December 2015

Abstract

Australian Ilmenite Resources Pty Ltd (Receivers and Managers Appointed) (AIR) is an independent ilmenite developer focused on the ilmenite and magnetite-bearing regolith from the weathering of dolerite sills in the Roper Gulf Shire. Its primary asset is the Roper Heavy Minerals Project (Project) that straddles the Roper Highway east of Mataranka, about 475km south-east of Darwin, in the Northern Territory (NT), Australia. The Project consists of 18 Exploration Licence Applications (ELA), 22 Exploration Licences (EL) including one Substitution Exploration Licence (SEL), and 2 Mineral Leases (ML), covering a total area of 14,227 square kilometres spanning the Roper River Basin. The two MLs, where trial mining and processing have been conducted, are located on Namul Namul Station adjacent to the Roper Highway. This is the fourth annual report for ML 27422 that covers the activities for the reporting period from 22/12/2014 to 21/12/2015. The site was placed onto 'Care and Maintenance' in July 2013 and therefore no mining has been conducted during this reporting period. The Project lies in Mesoproterozoic sediments of the Roper Group in the central-western Bauhinia Shelf of the McArthur Basin that have been extensively intruded by flat lying late Proterozoic sills of the Derim Derim Dolerite. The Project area has previously been explored for heavy minerals, iron ore, base metals, uranium and diamonds. Heavy minerals, including ilmenite, are present at or near surface within pisolitic, clay-rich ferruginous regolith and black soils derived from prolonged weathering of dolerite as it was exposed beneath overlying sandstones. During this process the primary heavy mineral content from the dolerite has been significantly enriched to potential economic concentrations in the regolith. In April 2014, a limited resource drilling program was undertaken in the northern part of ML 27422 but the samples were not processed systematically. Geological mapping of ML 27422 was also undertaken with the aid of a very recent high resolution satellite imagery. On 28 July 2014 Janna Robertson and Scott Kershaw of KordaMentha were appointed as Receivers and Managers of AIR ('the Receivers') pursuant to security interests duly registered with the Personal Property Securities Register. This appointment placed AIR's Regional Exploration and Resource Assessment program on hold although the Receivers have continued to manage AIR on a business as usual basis. Exploration was subsequently focussed on SEL 28291 which surrounds ML 27422. In order to enhance the property for sale, a comprehensive resource definition program was undertaken in October and November 2014 the details of which were reported during the previous reporting period. The program was managed by TZ Minerals International Pty Ltd (TZMI), a leading mineral sands consultant. Results of the sample mineral processing and geological resource modelling show that for ML 27422 and adjacent Blocks 2 and 3 of SEL 28291 the combined indicated and inferred resource (JORC 2012) is estimated to contain 33.3Mt at an average grade of 5.7% ilmenite using a cutoff of 4% total heavy mineral content. There has been no on-ground activities on ML 27422 during the current reporting period.