The banded iron formations associated with various tillite in South Australia have been recognised as being potential sources for iron however the low-grade nature of these bands has been one of the limiting factors in why they have not been exploited. Exploration licence 3997 “Manunda” is situated approximately 50 km south of Yunta and surrounds the Razorback Ridge and Iron Peak it therefore focuses on the banded iron formations located to the north and south of Razorback Ridge. The area Razorback Ridge and Iron Peak was highlighted in “The Investigation and Exploitation of the Razorback Ridge Iron Deposit” G F Whitten, Report of Investigations 33, 1970 [CNO:1003234]. At Razorback ridge it was thought that its iron resources were uneconomic due to the low prices at that time. With technological changes taking place in both mining and metallurgy the economics of developing this resource have become much more positive, the ability to produce a magnetite concentrate quite simply and commands a significantly higher price than what is usually expected for feedstock for iron smelting. During the first reporting period to 9th December 2008, Goldus Pty Ltd’s exploration of the area was mainly restricted to office base reviews with limited field visits. A detailed study of open file PIRSA published data for the area was undertaken with the aim of gaining a better understanding of the occurrences of iron stone in the area. Three site visits were made with potential international investors/partners from major iron and steel companies. In October 2008, an onsite visit was organized by The Hon Peter Lewis and under the direction of Mr. Hillam / Geologist, with Salim China to further evaluate mining feasibility on EL 3143 (neighbouring tenement) and a half day visit to EL 3997. Marcus Flis of Royal Resources Ltd was contracted to review the economic potential of neighbouring EL 3143, Goldus believe that the conclusions made in the report have significance to the current tenement with respect to how to value the additional reserves that may be added from adjoining prospects once these reserves are proven. During the reporting period fraudulent challenges were made against the lessee. The challenges were made without any legal basis and have since been dismissed but did lead to significant costs of loss of time, limiting the company’s ability to complete its planned exploration for the reporting period. During the second reporting period to 9th December 2009, Royal Resources Ltd and Goldus Pty Ltd entered into a Joint Venture agreement on the iron ore rights of the project area as of November 2009. Royal undertook due diligence on the Red Dragon Tenement (EL3997), which included a desktop study and site visit. Royal believes the tenement holds good magnetite potential and could provide additional tonnage to compliment the Razorback Iron Deposit in the adjoining tenement. Within the Red Dragon Tenement, Royal began an aeromagnetic survey program and geological mapping, with results to be presented in the following annual report.