September 2010 Quarterly Report

The Company reported encouraging exploration results from the Mata da Corda Phosphate Project (“MCPP”), these included:

  • Discovery of high grade phosphate in surface rock chips with grades of 23.1% and 18.6% P2O5 at the Breccia Target located 3 kilometres to the west of Capacete
  • Discovery of the Block 5 Target , where surface sampling results returned up to 13.01% P2O5.
  • Scout mapping of Blocks 5, 6 and 10 identified similar rocks as found at the Capacete Target to the east, with very promising thicknesses and strike lengths in excess of 50 kilometres.
  • These new discoveries highlight the area’s potential to host a near surface phosphate deposit and will be drill tested in December quarter.
  • First bulk sample (16kg) taken from Capacete Target returned excellent mineralogical results and grade of 18.2% P2O5. Results indicate Capacete target amenable to beneficiation which has significant advantages for downstream development of beneficiated phosphate rock and fertiliser production.
  • Completed a 1,000 metre (16 holes) diamond drilling program at the Capacete and Breccia Target with results pending.
  • Reconnaissance ground checking over large 300,000 hectare groundholding continues with the Company expecting results progressively over the coming months.