Cobalt Projects (CAZ 100%)

The Company has granted Exploration Permits located in both Queensland and New South Wales over cobalt prospective geology. The two licences cover several prospects with significant historic cobalt mineralisation with little modern exploration conducted to date.

MOUNT TABOR, QUEENSLAND (CAZ 100%)

In Queensland the Mount Tabor Project, held under Exploration Licence EPM26213, covers approximately 325 square kilometres located near the eastern margin of the Eromanga Basin in Central Queensland.

The area contains several prospects of manganese oxide impregnated sand and grit of Tertiary age with potentially significant cobalt and manganese mineralisation over an extensive area. The licence lies to the north west of Injune and approximately 130km directly north of Mitchell in south-central Queensland.

Manganese rich pods occur sporadically throughout the area and are found to contain appreciable amounts of potentially economic cobalt. Some of these pods were explored initially by Mineral Deposits Limited (“MDL”) from 1979-1982 and then by Cobalt Resources NL (“CRN”) in the 1990’s with further work more recently conducted by Maranoa Resources Limited (“MRL”). This work highlighted cobalt mineralisation over several prospects; Mt Manganese, Mt Gould, Alpha, Mt Bally-Lethbridge, Mt Emily and Carnarvon and extend over approximately 20km within the project area.

Of particular interest was the Mt Manganese prospect where MDL returned grab samples assaying up to 2.89% Co. MDL also drilled 62 percussion holes whilst CRN drilled a further 139 holes. CRN also carried out preliminary metallurgical studies that confirmed that several leachants may be suitable for treating the mineralisation. MRL developed a new genetic model for the mineralisation however due to the depressed market for cobalt at the time the licence was relinquished.

Very little modern systematic exploration has been completed to examine the economic potential of the deposits. The company is currently negotiating access to the licenses ahead of its initial ground work.

BUNGONIA, NSW (100% CAZ)

In New South Wales the Bungonia Project, held under Exploration Licence EL8483, covers approximately 240 square kilometres on the eastern edge of the Lachlan Fold Belt. Previous exploration defined several areas of significant cobalt and nickel mineralisation some of which have been historically mined as early as the 1890’s. Cobalt mineralisation occurs as flat lying residual on hills extending for several hundred metres associated with manganiferous deposits over intense deeply weathered mafic or other metal rich rocks. The deposits typically contain relatively rich cobalt values, with minor nickel and copper credits, and have been worked historically with high cobalt recoveries.

The areal extent and assay results from historic work point to significant potential to extend known deposits as well as make new discoveries within the project area. The potential is highlighted by rock chip grades of up to 1.8% cobalt along with historic mining from several locations.

Metallurgical test work previously undertaken was also positive with excellent recoveries of 83.2% cobalt, 79.5% copper and 85.9% nickel returned from acid leaching of a 80 kilogram sample containing 1.15% cobalt, 0.39% copper and 0.26% nickel.

Drilling of the Main Deposit in 1970, along with drilling by others over other localities at Minalinka, Angel Myst, Osiers, Jacqua Creek, Dogleg, Hillydale and Yarralaw, has produced results that indicate the area is highly prospective for small to modest sized individual cobalt ore bodies. Preliminary assessment indicates that there is potential for further extensions to these bodies as well as the discovery of new cobalt sources, including blind ore bodies beneath Tertiary cover, basement primary cobalt mineralisation as well as new discoveries at surface.