An area in the vicinity of Parndana, located on north-central Kangaroo Island approximately 30 km west-southwest of Kingscote, is being explored mainly for possible economic gold and Mississippi Valley type base metal sulphide mineralisation associated with dilational vein systems developed adjacent to the deep-seated, east-west trending Cygnet-Snelling Shear Zone (C-SSZ), which is believed to lie right on the southern margin of the Gawler Craton. Gold and base metal occurrences exist along much of the C-SSZ, with significant deposits having been worked at six historic mines, including Grainger’s mine and the Kohinoor goldfield. These deposits are evidence of the existence of an extensive hydrothermal alteration and vein system related to past fault activity along the C-SSZ. Aeromagnetic data indicate that a distinct magnetic low marks the C-SSZ in the vicinity of Grainger’s mine. This phenomenon is apparently due to de-magnetisation of the Cambrian host rocks by mineralising fluids channelled through the fault zone. High-grade zinc mineralisation (up to 5 m @ 26.9% Zn), discovered at Grainger’s mine prospect during 2003 by a Havilah aircore drilling programme, forms stockworks of thin, quartz-sphalerite-galena veins invading a silicified greywacke host rock. A halo of lower grade, disseminated, zinc and lead mineralisation surrounds the stockworks over a strike length of at least 400 m. These results indicate that the Grainger’s mine area is a focus of significant hydrothermal base metal mineralisation, with associated precious metal values. Further drilling of this prospect, which lies within the retained portion of EL 4851, would offer the potential to define a significant metal resource. Monax considers that a marked kink in the fault zone at Grainger’s mine may reflect a secondary structural control. Further exploration will be assisted by the discovery that the surficial laterite layer may not hinder soil geochemical surveys to the extent previously thought. At Dewrang prospect, which lies on the fault zone 4 km west of Grainger’s mine, the possibility of widespread lead mineralisation is indicated by anomalous soil geochemistry. Recently Monax was required to relinquish approximately one-half of the subject EL 4581 under the terms of licence renewal, and to satisfy this condition, chose to divest about a 20 km section of the target C-SSZ, in two blocks. Exploration undertaken there over the past seven years, all of which took place during the 5-year term of EL 3376, has included parts of gravity and aeromagnetic surveys, as well as soil and rock chip sampling. During late February 2006, approximately 56 gravity stations were read on a 1 km x 1 km grid within the now relinquished ground, as part of a 217 station helicopter - assisted ground gravity survey contracted to Daishsat Geodetic Surveyors. All of the raw gravity data for this survey was submitted in the Kangaroo Island Project 2005-2006 period combined annual report (herewith included). During October 2006, an airborne magnetic and radiometric survey totalling 3439 line km, with a north-south flight line spacing of 100 m and a 50 m nominal sensor height above ground level, was acquired over Monax’s Parndana (EL 3376) and Western River (EL 3088) tenements by contractor UTS Geophysics. The survey raw data was submitted in the Kangaroo Island Project 2006-2007 period combined annual report (herewith included). During March 2008, Monax undertook a diamond drilling programme which included one hole at the historic Kohinoor mine located within the now relinquished eastern block (KOHDD001 drilled to a total depth of 140.1 m at -59.2° inclination from the horizontal). Details of this drillhole, including drill core lithologies and geochemistry, were submitted in the Kangaroo Island Project 2007-2008 period combined annual report (herewith included). At various times during the period of licence tenure by Monax, soil and rock chip geochemical samples were collected for analysis, including 309 samples taken from within the now relinquished ground. The majority of these samples were collected during 2008 and 2009, and their assay results have been reported in the Kangaroo Island Project 2 combined annual reports dealing with those respective years (herewith included). During March 2010, a detailed helicopter-borne magnetic and radiometric survey totalling 1450 line km, with an east-west flight line spacing of 25 m and a 35 m nominal sensor height above ground level, was acquired over Monax’s Parndana (EL 3376) and Western River (EL 4154) tenements by contractor Aerosystems. The survey raw data was submitted in the Kangaroo Island Project 2009-2010 period combined annual report (herewith included). Although Monax maintains an active interest in the exploration potential of EL 4581, no work has been done there during the first two licence years, since October 2010. Due to the company's priority focus on and commitment of funds to its other projects on the mainland, it became necessary to relinquish ground on Kangaroo Island to compensate for this decision.