Exploration for possible economic occurrences of magnetite and/or haematite iron ore formed in concealed Proterozoic basement to the west of the Middleback Range is being carried out by Northern Eyre Peninsula Project (NEPP) joint venturer Centrex Metals, while exploration for all other minerals is being done by licensee Lincoln Minerals, with some overlapping survey operations being done in concert. A formal legal agreement exists between Centrex Metals and Lincoln Minerals, which addresses the expected scenarios of exploration and mining on the NEPP tenements that may be enacted by either company. Both companies also share data and reports pertaining to the project tenements. During February 2007, both partners co-funded the acquisition of a regional detailed airborne magnetic/radiometric/DTM survey flown across most of the five subject licences, for a total coverage of 5916 line km at 100 m line spacing and a 50 m nominal sensor height above the ground surface. Following the processing of the survey data, Lincoln Minerals followed up selected interpreted radiometric anomalies with ground spectrometric traverses. No anomalous uranium channel radiation was detected. Subsequently, during April 2007, Lincoln undertook calcrete sampling at 500 m x 1 km grid spacing (38 samples) over a salt lake on Kimba Gap EL 3018. During March-April 2007, Centrex Metals performed appraisal diamond drilling at the known significant Bungalow iron ore deposit located on Minbrie EL 3610. 4 inclined HQ/NQ core holes were completed for a total penetration of 893.3 m (including 198.3 m of rotary mud precollars) to test for structural thickening and coalescing of three previously reported magnetite ‘units’ at the southern margin of the deposit. The southern part of the Bungalow deposit had been identified by Centrex Metals as the most prospective due to the depth of cover and the apparent ‘mineable’ thickness of the magnetite zone. A drill traverse was designed with holes spaced 100 m apart. Three of the holes, BUDD07, BUDD08 and BUDD10, intersected an 80–100 m wide zone of magnetite-rich rock material. The fourth hole BUDD09 encountered drilling difficulties within the weathered basement's clay-rich saprolitic paleosurface, which expanded into the wellbore and caused the rods to tighten up, thus leading to abandonment of this hole. 175 quarter drill core samples were despatched for laboratory semi-quantitative satmagan magnetic balance testing to determine probable magnetite content, as well as for XRF assaying of a broad range of elements. Over the succeeding year, reverse circulation exploration drilling and selective calcrete sampling were undertaken at EL 3287 Stony Hill; geological reconnaissance, ongoing data review and selective vegetation sampling were undertaken at EL 3968 Kimba Gap; and preparations for more diamond drilling, and a number of iron ore mine planning - related studies, were undertaken at EL 3610 Minbrie. As part of the latter, with respect to the Bungalow deposit, metallurgical consultants Engenium were engaged by Centrex Metals to undertake an iron mineral separation analysis of a 50 kg bulk drill core magnetite ore sample to determine an optimum grind size for Davis Tube Recovery (DTR) testwork. The results showed a P100 38 micron grind size (P80 28 micron) would produce an optimum concentrate at DTR recovery: 36.5%, Fe: 69.3%, SiO2: 3.38%, Al2O3: 0.08% and CaO: 0.09%. In addition, Golder Associates were contracted by Centrex Metals to carry out an environmental scoping study for the Bungalow project. Work undertaken until June 2008 included a site visit to recommend key baseline studies that will be required to be undertaken, by having a first pass high level look at major environmental issues at the site, and then the company was instructed to conduct a review of required approvals for the development of a future mine site. Results from their study are due in early 2009. During February 2008, Lincoln Minerals undertook reconnaissance biogeochemical exploration across EL 3018 Kimba Gap, collecting leaves from the deep-rooted tree species Mulga (Acacia aneura - 11 samples) and Red Mallee (Eucalyptus gracilis - 34 samples) to process for a wide range of trace metal and rare earth element assaying. Surface geochemical anomalies in U and U/Th were thereby defined, possibly indicating the presence of a buried channel leading to a salt lake where there is a significant airborne radiometric anomaly. Lincoln concluded that vegetation sampling (i.e. biogeochemistry) seems to be a suitable tool for mineral exploration. It decided to conduct a follow-up programme of vegetation sampling in early 2009 (summer) to confirm the present results and to define precisely the location of the possible buried channel. Late summer is the preferred time for vegetation sampling, since at this time trees get their moisture from deeper levels in the soil profile. During the period March-May 2008, Centrex completed 24 vertical exploratory RC drillholes for 2769 m to investigate targets in an area of EL 3287 Stony Hill located about 20 km west of Iron Baron. The Hutchison Group in this area was deemed highly prospective for both haematite and magnetite based on detailed aeromagnetic data, outcrop evidence and the results from two previous holes drilled by BHP (ST1 and ST2). In the central zone the cumulative strike length of the main aeromagnetic anomaly is in the order of 8 km, with outlying magnetic anomalies indicating several more kilometers of strike length. It was intended that for this particular area the drill programme would address significant knowledge gaps in the State’s existing geological information with regards to stratigraphy, structural relationships and depth to basement [so all of the basic drillhole data obtained by Centrex has been provided to PIRSA herein via the subject 2007-2008 joint annual report]. During May 2008, Lincoln Minerals performed further regional calcrete, soil and lateritic lag sampling (130 samples collected over a 500 m x 1 km grid on EL 3287 Stony Hill), but no geochemical anomalism was found. No significant exploration activity was undertaken on ELs 3375, 3999 and 4185 during the NEPP 2008-2009 reporting year. On EL 3610, Centrex Metals drilled 20 new RC or rotary mud precollared diamond holes for 5194.3 m, targeting iron ore within the the Bungalow magnetic anomalies. Three of the holes, BUDD019, -021 and -033, were completed with slotted PVC casing run to end-of-hole to allow for future groundwater monitoring. All of the HQ3 and oriented NQ2 drill core was geologically logged for lithology, visible minerals, and geologic structures (bedding, foliation, faults, folds etc.). Lithological logging was also done on all RC drill chips. 530 samples of 1/4 core from holes BUDD011 to BUDD030 were submitted for assay and DTR testing. Most assay intervals were 3 m long. No samples were submitted from either BUDD013 or BUDD028 because they did not intersect ore. Thin sections and polished thin sections of 17 selected drill core samples were prepared and described. The latest drillholes collectively encountered three elongated magnetite BIF orebodies at Bungalow. The first orebody is contained in a sheath fold that was progressively unroofed by erosion to make a synform. The second orebody is in an overturned syncline. Both of these orebodies were intercepted by previous drilling (2005 and 2007), and the 20 new holes confirmed that they have been strongly affected by ductile deformation and minor folding superimposed on their major folds. Both are also diluted by multiple granite intrusions. The third orebody, not previously drilled, appears to be a simple vertical slab, possibly one limb of a sheared syncline. These three orebodies are separated from each other by two parallel shear zones up to 200 m wide. These are filled by a melange of strongly foliated schists, migmatised schists, intensely deformed and/or recrystallised calcsilicates, disrupted pods of harder rocks, and intrusive amphibolitic and granitic rocks. Two additional shear zones, also nearly parallel but of unknown thickness, define the outer flanks of the Bungalow magnetic anomalies. Centrex Metals has suggested that the observed mismatch of structures and lithologies across all shears indicates past large displacements. All shears are steeply dipping (75-80º) to the north-west, and all apparently cut through the major folds. These shears are assumed to be the same age as the Kalinjala Mylonite Zone, a major crustal-scale shear that passes near the south-western end of Bungalow. They have provided pathways for amphibolite intrusions, pyrite-pyrrhotite veins, and possibly for some dykes of late-stage Kimban Orogeny granites. It is obvious that all three of the major fold structures at Bungalow were originally parts of a much larger structure that has been telescoped together along the shear zones described above. Lincoln Minerals continued its biogeochemical exploration on EL 3125 during November 2008 and January 2009, in order to complement the widely spaced data acquired in the previous campaign by both extending the survey and acquiring more closely spaced data. 86 samples of Red Mallee were assayed, and the results defined a pattern of uranium anomalies having a WNW trend, that could suggest the presence of a mineralised paleodrainage system. During the NEPP 2009-2010 reporting year, no work took place on EL 3610, but detailed geological mapping and outcrop sampling was undertaken by Centrex Metals over the region to the west of the Middleback Range on ELs 3287/4451, 3375, 3986, 3999 and 4185. Some suspected-to-be Mesoarchean granitoid rocks discovered during the mapping were sampled for radiometric dating service and research work done by PIRSA as PACE Geochronology project PGC01-05 (for full details and a discussion of the dating results, see RB 2011/00003). During the NEPP combined 2010-2011 and 2011-2012 reporting years, Lincoln Minerals conducted a review of previous explorers' calcrete geochemical data for the area covered by ELs 4451 and 4571, and submitted the calcrete samples that it had collected in 2008 to be assayed. Centrex Metal's activities on the five western Middleback region tenements were limited to sporadic visits to specific localities and outcrops for the training of new geological staff, plus the conduct of a desktop geology review, with consideration of possible portions of project ground that it could relinquish, and of potential drilling targets. Some of the rock chip samples collected by Centrex Metals in 2009 were used by a student from the University of Adelaide in research he conducted for his B.Sc.(Hons) thesis project [cf. Goodwin, S., 2010. Geochemical and isotopic investigation into the tectonic setting of Mesoarchean and Paleoproterozoic granitoid suites within the eastern Gawler Craton, South Australia. University of Adelaide, unpublished B.Sc.(Hons) thesis. Available from the University.]. The new Ironstone Hill Conservation Park was proclaimed by the Government of South Australia on 26/8/2010. The new park includes all of EL 3999, practically all of EL 4185, and a small portion of EL 3968. On the same day, a related proclamation was issued which preserved Centrex Metal’s existing rights of entry, prospecting, exploration or mining within the affected tenement areas. Creation of the new conservation park has a significant effect on required legal notifications of any future activities proposed by Centrex Metals within its borders. The minimum notice period is now 3 months instead of 3 weeks, and details of the proposed activity must be sent to (and approved by) both the Minister of Mines and the Minister for the Environment. During August 2010, Thomson Aviation was contracted by Centrex Metals to fly a 1350 line km detailed airborne magnetic/radiometric survey over northern EL 3610. The NW-SE aligned flight lines were spaced 40 m apart, and geophysical data was acquired using a 20 m mean terrain clearance. This survey was merged with the 2004 survey to yield a high resolution magnetic map of most of EL 3610. Drill targeting of magnetic orebodies was significantly improved. Also on EL 3610, using three contract diamond drilling rigs, Centrex Metals carried out three campaigns of drilling over the two-year period, during August-December 2010 (total of 8157.7 m drilled, including 2340.6 m of HQ core and 3412.6 m of NQ2 core), during March-September 2011 (total of 4209.2 m drilled, including 1374.6 m HQ core and 1598.5m NQ2 core),and from September 2011 to February 2012 (total of 1648.0 m drilled, including 15.5 m HQ core and 1067.7 m NQ2 core). Overall, 243 holes for a total penetration of 55,927.7 m were completed, including 12 geotechnical holes that were designed to assess the pit wall stability of a potential open cut mine at Bungalow, besides 11 water bores destined for pump tests and long term groundwater monitoring, plus 15 vertical holes drilled to investigate the overburden within a potential pit outline. 134 of the latest holes made a total of 9815.5 m of iron ore intercepts, or ~28% of the total metres drilled, that included subsurface occurrences of several new ore types. Some of the diamond drill cores provided samples for initial metallurgical test work on new BIF bodies, and cores from all of the exploratory holes were then used to make bulk samples of the major known ore types to help develop detailed metallurgical flow sheets. Baseline social and environmental work for the Bungalow Mining Pre-Feasibility Study also began during this reporting period. It included making an aerial photographic and topographic survey of the entire tenement in February 2011, conducting seasonal flora and fauna surveys, the installation of an automatic weather and air monitoring station on site, and commencing Acid Mine Drainage sensitivity and prevention experiments. In fault block Section 43 East of the Bungalow orebody, Potentially Fibrous Minerals were found to be associated with a talc-rich ore zone. This discovery was made independently and simultaneously by metallurgists (while testing earlier recovered samples) and Centrex Metals geologists (while logging the latest samples from the zone). All subsequent drilling of this ore zone was done as drill core, or as water-injected RC, with total collection of all drill chips into bags. Any of the Section 43 east holes that actually had encountered talc were later prioritised for rehabilitation, which was done by personnel wearing personal protective equipment approved for asbestos work. A new base metal discovery comprising intersections of significant copper-lead-zinc and silver mineralisation was made in hole BUDD192 situated near the centre of the Bungalow North orebody. Laboratory assaying of drill core samples taken over a 29.5 m thick interval between 131.1 m to 160.6 m hole depth (hole angled -60° toward 135°) returned an average grade of up to 0.76% Cu, 7.37% Pb, 1.88% Zn, 9.0 g/t Ag plus traces of gold (0.01 g/t Au). This mineralisation exists as massive to banded to vein sulphides contained within hydrothermally brecciated Hutchison Group BIF, schist and dolomitic metasediments. Later in the reporting period, Lincoln Minerals acting as the non-iron economic metals exploration operator logged, sampled and assayed this mineralisation, and also reviewed the geology and drill core assays from neighbouring holes. A small regolith sampling campaign was then planned to discover if there is any geochemical halo associated with the BUDD192 mineralisation. During the NEPP 2012-2013 reporting year, Centrex Metals and its contractors performed a large amount of metallurgical and engineering test work, modelling, and various baseline studies in and around renewed EL 4884 Minbrie. These topics will be reported by the soon-to-be-published “Bungalow magnetite project Pre-Feasibility Study”. A 148 line km ground magnetic survey was acquired in October 2012 along NW-SE traverse lines spaced 200 m apart, to cover areas suggested for the proposed mine’s waste rock dump, magnetite processing plant and tailings storage. It was “successful” because it did not find any significant new magnetite anomalies under these areas. Potentially Fibrous Minerals investigations were expanded to include more orebodies and rock types. More than 1000 samples have now been examined via optical microscopy and X-ray diffraction, confirming earlier findings about the occurrence and distribution of these types of minerals. Additional samples from existing drill cores were petrologically examined to help broaden the understanding of the various ores and rock types occurring at Bungalow. Metallurgical test work done for the PFS also included several mineralogical investigations of test products made using optical microscopy, QEMSCAN and/or X-ray diffraction methods. On EL 5170 Kimba Gap, the prominent South Camel Hill ridgeline will be the subject of a new iron ore exploration drilling and sampling programme planned for 2013. During 2012 some precursive work was done including making structural geology measurements of outcrops near the proposed drill sites, to aid any future drillhole data interpretations. An anthropological heritage survey of the entire ridgeline was conducted on foot by Australian Cultural Heritage Management Pty Ltd and representatives of the aboriginal traditional owners. OneSteel/Arrium granted permission for the survey to access the portion of the ridgeline outside of EL 5170 and within their tenement EL 4732. No field work was done on ELs 3999, 4185 or 4571 during the reporting period, but they were reviewed for partial relinquishment. For EL 4883 Cockabidnie, assaying and DTR test work was done by Centrex Metals on stored drill core samples from the depth interval 161.7-182.9 m in historic diamond hole DDH SC1, which were obtained from PIRSA's Whyalla Core Library. This hole was originally drilled by CRA Exploration in 1981. Samples for head assaying were taken at (nominally) 1 m intervals. Pairs of these samples were then combined into (nominally) 2 m intervals for DTR test work performed using the “Bungalow DTR procedure”. All of the DTR concentrates which were produced contained high levels of impurities. During 2012-2013, Lincoln Minerals acquired TEMPEST airborne EM survey coverage on EL 4883, in a collaboration with PIRSA for the PACE 2020 geophysical exploration Targeting programme, under approved Project PT1-16 (see Env 12371 for the final interpretative report). Prominent EM anomalies associated with saline aquifers within the Cenozoic cover to the Campoona Syncline were revealed, as well as more subtle anomalies associated with known metasedimentary basement-hosted graphite deposits and Ni-Co-Sc - bearing amphibolites. The mineralogy of the massive lead-zinc sulphide discovery made at Bungalow North in January 2012 in diamond drill hole BUDD192 has now been selectively sampled and fully described in Pontifex Mineralogical Report 10101 (attached hereto). It is intended to conduct a ground EM survey over the occurrence area in the near future. A tenement-wide review of previous calcrete data for EL 4451 Stony Hill and 4571 Gilles Downs was undertaken by Lincoln Minerals during 2012, and several calcrete samples it had collected during 2008 were submitted for assaying. No anomalous results were obtained.