arh third quarter report sb

SHERLOCK BAY EXTENDED
The Sherlock Bay Extended exploration area is covered by an Exploration Licence (E47/1227) and two Exploration Licence applications (E47/1769 and E47/1770) surrounding the main Sherlock Bay Nickel Project area. It was acquired by a joint venture between the Company (70% interest) and Metals Australia Ltd (30% interest), from Fox Resources Ltd under agreements executed in December 2006.
The Company was recently advised that Mining Act objections lodged by Ngarluma Aboriginal Corporation over E47/1769 and E47/1770 were withdrawn in April 2007. This will allow the tenements to be advertised under the Native Title Act which entails a further four month notice period. The Company is therefore expectant that these tenements will be granted during the second half of 2007.
An initial programme of soil sampling on tenement E47/1227 was completed in January 2007 in order to test a number of anomalies identified from previous airborne magnetic surveys.
Assay results from the sampling programme are currently being analysed which will assist with the planning of future exploration work on the tenement. Results and conclusions will be provided during the coming months.