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Exploration Licence 10387 Mount Liebig SF5216

RELINQUISHMENT REPORT

2nd September 2008 – 2nd September 2010-11-30

Licensee: Kajeena Mining Company Pty Ltd

Operator: Teck Australia Pty Ltd ABN 35 091 271 911

Author: A J Kalma (Teck Australia Pty Ltd)

30th November 2010

Distribution

Department of Business, Industry and Resource Development

Kajeena Mining Company Pty Ltd

Teck Australia Pty Ltd

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Executive Summary

EL 10387 was granted to Kajeena Mining Company Pty Ltd in September of 2008.

Teck Australia Pty Ltd as operator successfully negotiated the grant of the tenement

and exploration Deed with the traditional owners and the Central Land Council.

Desktop targeting for base metals (Broken Hill Type and IOCG systems) identified a

number of discrete areas of interest, however thes could not be field tested due to

the outcomes of a cultural heritage survey.

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Table Of Contents 

1.  Introduction .................................................................................................................................... 4 

2.  Location ........................................................................................................................................... 4 

3.  Tenure ............................................................................................................................................. 4 

4.  Land Access and Heritage Clearances ............................................................................................. 5 

5.  Work Completed ............................................................................................................................. 5 

a.  Literature Review ........................................................................................................................ 5 

b.  Strategic & Technical Reviews .................................................................................................... 5 

c.  Exploration Targeting .................................................................................................................. 5 

i.  Methodology ........................................................................................................................... 5 

ii.  Geology ................................................................................................................................... 5 

1.  Regional ............................................................................................................................... 5 

2.  BHT Target Geology ............................................................................................................ 6 

iii.  Geophysics .............................................................................................................................. 6 

1.  Airborne Magnetics ............................................................................................................. 6 

2.  Regional Gravity .................................................................................................................. 7 

iv.  Spectral Data ........................................................................................................................... 7 

1.  Landsat data ........................................................................................................................ 7 

2.  Aster Data ........................................................................................................................... 7 

v.  Results ..................................................................................................................................... 8 

6.  Expenditure ..................................................................................................................................... 8 

7.  Conclusion ....................................................................................................................................... 8 

Appendix 1: References

Appendix 2: Relinquished Sub –Blocks

Appendix 3: Metadata Report

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1. Introduction

An agreement with Kajeena Mining was established in 2002 to explore for base

metals (Zn, Cu, Pb) and nickel over a number of tenements including EL 10387.

A Deed with the Central Land Council was executed in 2008 following successful

negotiation with Traditional Owners to explore on the tenement. This

relinquishment report details the desktop mapping completed prior to heritage

exclusion and the subsequent decision to relinquish ground.

2. Location

The area of EL 10387 relinquished is located approximately 300km west of Alice

Springs and about 20km south west of the community of Mt Liebig.

Access to the area is from Alice Springs via the Stuart Highway, Tanami Road

and Kintore Road.

The tenement is within the Mount Liebig 1:250K map sheet.

3. Tenure

EL 10387 (500 sub-blocks) was granted to Kajeena Mining on the 2nd of

September 2008. One hundred and fifty five blocks over five discrete areas of EL

10387 have been relinquished and are labelled A to E and mapped in Figure 1

and listed in Appendix 2.

The number of sub-blocks per Area are;

Area A: 5

Area B: 1

Area C: 2

Area D: 38

Area E:109

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4. Land Access and Heritage Clearances

Negotiations with Traditional Owners to grant the tenement were successful with the tenement granted on the 2nd of September 2008 following execution of an Access Deed with the Central Land Council. Following preparation and submission of a work plan, a heritage survey was coordinated with the assistance of the Central Land Council. The resulting report excluded areas from exploration approximating the relinquished areas A..E . Without the possibility of accessing the areas, the ground was relinquished.

5. Work Completed

a. Literature Review

A literature review confirmed that no previous exploration had occurred on the tenement. A number of publications were sourced and provided useful background for exploration targeting, notably the work by the NTGS (refer Appendix 1). Whilst some NTGS mapping has been completed and interpretive products produced, no systematic mapping or sampling program has been undertaken.

b. Strategic & Technical Reviews

A number of technical and strategic reviews were conducted during the period involving input from both internal and external specialists.

c. Exploration Targeting

i. Methodology

Integration of expert weighted layers of geology, structural data,

magnetic and spectral anomalies resulted in the delineation and

prioritization of exploration targets.

ii. Geology

1. Regional

The Warumpi Province is a 1690–1610 Ma accreted terrane, comprising metasedimentary, metavolcanic and metamorphosed plutonic rocks that abut the southern margin of the North Australian Craton (NAC).

2. BHT Target Geology

Target geology comprises metasediments and metavolcanics which may form suitable hosts to Broken Hill Type mineralization. Mapped 250K geology is insufficient to separate various metasedimentary, metavolcanic and meta-intrusive units and without access to the areas no further ground truthing was possible.

Figure 1: Area of EL 10387 and relinquished areas A..E with Proterozoic geology (1Ml) on

topographic background (1ML).

iii. Geophysics

1. Airborne Magnetics

Regional airborne magnetic data at 400m spaced intervals was used to highlight discrete magnetic features with size potential to reflect a Broken Hill Type (Cannington style) or IOCG target.

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2. Regional Gravity

Regional gravity data was very poorly spaced and not of sufficient quality for the selection of target areas.

Figure 2: Area of EL 10387 and relinquished areas A..E with Proterozoic geology (1Ml) on magnetic (TMI) background (1ML).

iv. Spectral Data

1. Landsat data

Was acquired and processed using CSIRO’s Clay (R) – Iron (G) – Silica (B) ratio. Anomalies were identified and used in final targeting as shown in Figure 3.

2. Aster Data

Crosstalk corrected Aster data was acquired and a number of algorithms were applied to map the abundance of hydroxyl minerals, carbonate, silica and iron. Anomalies were identified and used in final targeting as shown in Figure 3.

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v. Results

Figure 3 shows the results of targeting with numerous areas identified within the exclusion zones.

6. Expenditure

Year 1 Year 2

Desktop Review & Targeting $4906 $3145 Total Expenditure $8051

7. Conclusion

Despite significant efforts and expense to negotiate grant of the tenement and to undertake the technical review and targeting it is disappointing that such large areas were excluded from exploration due to heritage exclusions. Without access to outcrop in such an unexplored terrain technical knowledge has not been advanced.

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Appendix 1 References 

Frater in prep 2006, Mineral Potential of the 1690-1600 Ma Warumpi Province. Cross et al 2005, Summary of results. Joint NTGS-GA geochronology project : southern Arunta region. Scrimgeour et al 2006, High-T granulites and poly metamorphism in the southern Arunta Region, central Australia: Evidence for a 1.64Ga accretional event. Hoatson et al 2005, Proterozoic mafic–ultramafic intrusions in the Arunta Region, central Australia: Part 1: Geological setting and mineral potential Claoue-Long et al 2005, Proterozoic mafic–ultramafic intrusions in the Arunta Region, central Australia: Part 2: Event chronology and regional correlations, Precambrian Research

NTGS 1:250K Explanatory Notes, Mount Leibig, NTGS (various) Wyborn et al 1998, A newly discovered major Proterozoic granite-alteration system in the Mount Webb region, central Australia, and implications for Cu–Au mineralisation. AGSO Research Newsletter 28.

Appendix 2Relinquished Areas

Grid_ID BIM Block Sub_BlockArea A SF522936S SF52 2936 SArea A SF522936T SF52 2936 TArea A SF522936U SF52 2936 UArea A SF522936Y SF52 2936 YArea A SF522936Z SF52 2936 ZArea B SF522940Q SF52 2940 QArea C SF522867Y SF52 2867 YArea C SF522867Z SF52 2867 ZArea D SF522869X SF52 2869 XArea D SF522869Y SF52 2869 YArea D SF522869Z SF52 2869 ZArea D SF522869X SF52 2869 XArea D SF522869Y SF52 2869 YArea D SF522869Z SF52 2869 ZArea D SF522941C SF52 2941 CArea D SF522941D SF52 2941 DArea D SF522941E SF52 2941 EArea D SF522942A SF52 2942 AArea D SF522942B SF52 2942 BArea D SF522942C SF52 2942 CArea D SF522941H SF52 2941 HArea D SF522941J SF52 2941 JArea D SF522941K SF52 2941 KArea D SF522942F SF52 2942 FArea D SF522942G SF52 2942 GArea D SF522942H SF52 2942 HArea D SF522942J SF52 2942 JArea D SF522941L SF52 2941 LArea D SF522941MSF52 2941 MArea D SF522941N SF52 2941 NArea D SF522941O SF52 2941 OArea D SF522941P SF52 2941 PArea D SF522942L SF52 2942 LArea D SF522942MSF52 2942 MArea D SF522942N SF52 2942 NArea D SF522942O SF52 2942 OArea D SF522940T SF52 2940 TArea D SF522940U SF52 2940 UArea D SF522941Q SF52 2941 QArea D SF522941R SF52 2941 RArea D SF522941S SF52 2941 SArea D SF522942Q SF52 2942 QArea D SF522942R SF52 2942 RArea D SF522942S SF52 2942 SArea D SF522942T SF52 2942 TArea D SF522940Z SF52 2940 ZArea D SF522941V SF52 2941 V

Area D SF522941WSF52 2941 WArea D SF522941X SF52 2941 XArea E SF523009H SF52 3009 HArea E SF523009J SF52 3009 JArea E SF523010H SF52 3010 HArea E SF523010J SF52 3010 JArea E SF523010K SF52 3010 KArea E SF523014G SF52 3014 GArea E SF523014H SF52 3014 HArea E SF523009N SF52 3009 NArea E SF523009O SF52 3009 OArea E SF523009P SF52 3009 PArea E SF523010L SF52 3010 LArea E SF523010MSF52 3010 MArea E SF523010N SF52 3010 NArea E SF523010O SF52 3010 OArea E SF523010P SF52 3010 PArea E SF523014L SF52 3014 LArea E SF523014MSF52 3014 MArea E SF523014N SF52 3014 NArea E SF523014O SF52 3014 OArea E SF523009S SF52 3009 SArea E SF523009T SF52 3009 TArea E SF523009U SF52 3009 UArea E SF523010Q SF52 3010 QArea E SF523010R SF52 3010 RArea E SF523010S SF52 3010 SArea E SF523010T SF52 3010 TArea E SF523010U SF52 3010 UArea E SF523011Q SF52 3011 QArea E SF523011R SF52 3011 RArea E SF523011S SF52 3011 SArea E SF523011T SF52 3011 TArea E SF523011U SF52 3011 UArea E SF523012Q SF52 3012 QArea E SF523012R SF52 3012 RArea E SF523012S SF52 3012 SArea E SF523012T SF52 3012 TArea E SF523012U SF52 3012 UArea E SF523013Q SF52 3013 QArea E SF523013R SF52 3013 RArea E SF523013S SF52 3013 SArea E SF523013T SF52 3013 TArea E SF523013U SF52 3013 UArea E SF523014Q SF52 3014 QArea E SF523014R SF52 3014 RArea E SF523014S SF52 3014 SArea E SF523014T SF52 3014 TArea E SF523009X SF52 3009 XArea E SF523009Y SF52 3009 Y

Area E SF523009Z SF52 3009 ZArea E SF523010V SF52 3010 VArea E SF523011V SF52 3011 VArea E SF523011WSF52 3011 WArea E SF523011X SF52 3011 XArea E SF523011Y SF52 3011 YArea E SF523011Z SF52 3011 ZArea E SF523012V SF52 3012 VArea E SF523012WSF52 3012 WArea E SF523012X SF52 3012 XArea E SF523012Y SF52 3012 YArea E SF523012Z SF52 3012 ZArea E SF523013V SF52 3013 VArea E SF523013WSF52 3013 WArea E SF523013X SF52 3013 XArea E SF523013Y SF52 3013 YArea E SF523013Z SF52 3013 ZArea E SF523014V SF52 3014 VArea E SF523014WSF52 3014 WArea E SF523014X SF52 3014 XArea E SF523014Y SF52 3014 YArea E SF523081D SF52 3081 DArea E SF523081E SF52 3081 EArea E SF523082A SF52 3082 AArea E SF523082B SF52 3082 BArea E SF523083A SF52 3083 AArea E SF523083B SF52 3083 BArea E SF523083C SF52 3083 CArea E SF523083D SF52 3083 DArea E SF523083E SF52 3083 EArea E SF523084A SF52 3084 AArea E SF523084B SF52 3084 BArea E SF523084C SF52 3084 CArea E SF523084D SF52 3084 DArea E SF523084E SF52 3084 EArea E SF523085A SF52 3085 AArea E SF523085B SF52 3085 BArea E SF523085C SF52 3085 CArea E SF523085D SF52 3085 DArea E SF523085E SF52 3085 EArea E SF523086A SF52 3086 AArea E SF523086B SF52 3086 BArea E SF523081J SF52 3081 JArea E SF523081K SF52 3081 KArea E SF523082F SF52 3082 FArea E SF523082G SF52 3082 GArea E SF523083F SF52 3083 FArea E SF523083G SF52 3083 GArea E SF523083H SF52 3083 HArea E SF523083J SF52 3083 J

Area E SF523083K SF52 3083 KArea E SF523084F SF52 3084 FArea E SF523084G SF52 3084 GArea E SF523084H SF52 3084 HArea E SF523084J SF52 3084 JArea E SF523084K SF52 3084 KArea E SF523085F SF52 3085 FArea E SF523085G SF52 3085 GArea E SF523085H SF52 3085 HArea E SF523085J SF52 3085 JArea E SF523085K SF52 3085 KArea E SF523086F SF52 3086 F

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Appendix 3 Metadata Report

Titleholder Kajeena Mining Company Pty Ltd

Operator (if different from above) Teck Australia Pty Ltd

Tenement Manager/Agent McColl Tenement Services

Titles/Tenements EL 10387

Mine/Project Name West Arunta

Report title including type of report and reporting period including a date EL10387 Relinquishment Report 30 November 2010

Personal author(s) Kalma AJ

Corporate author(s) Teck Australia Pty Ltd

Company reference number Target Commodity or Commodities Zinc, Copper, Gold

Date of report 30 November 2010

Datum/Zone GDA94/Zone 52

250 000 K mapsheet, Mount Liebig

100 000 K mapsheet Contact details Postal address Tony Kalma – PO Box 1677 West Perth, WA, 6872

Fax 08 9321 4766

Phone 08 9321 4936

Email for further technical details tony.kalma@teck.com

Email for expenditure tony.kalma@teck.com