Barrytown Mineral Sands Project
New Zealand

Location of tenement EL 51803
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The Barrytown Mineral Sands deposit is located on the South Island of New Zealand, 28 kms north of the port of Greymouth. The exploration licence area comprises a coastal lowland strip up to 1.5 km wide within a coastal embayment that stretches over 17 km.

Farm-in Joint Venture

This Project is currently subject to a Farm-in Agreement with Pacific Mineral Resources Limited (PMRL), a New Zealand based unlisted Company, whereby PMRL can earn an 80% interest by completing a Pre-feasibility Study within 2 years (see ASX Announcement dated 19 September 2012).

In an ASX Announcement dated 28 March 2014, the Company has agreed to sell this 20% interest to PMRL, subject to conditions, by the 30 May 2014.

Ilmenite Mineral Sands

The Barrytown Project is a very large, by world standards, heavy mineral sand deposit with an Exploration Target*of 80-100 million tonnes @ 11-13% ilmenite.

The Project has seen extensive work over the last 40 years culminating in pilot scale production by C.R.A (now Rio Tinto) in the 1980's.

The Company believes that the potential for an Ilmenite development may be possible in current market conditions, however the work required for such a large and complex project requires specialist involvement which has seen the introduction of a Farm-in partner with appropriate expertise.

Barrytown beach licence area is mostly farmland

Gold in Heavy Mineral Sands

The Company has completed a more in-depth review of data and completed a site visit in early March 2012 to confirm the above assessment as well as investigate other value creating options. Of interest is the potential for economic development of the project by focussing on the most valuable constituents of the ore, being Gold and Zircon. The recent increase in market value for both these commodities has changed the value of such a proposition.

Previous work has focussed on the broad nature of the ilmenite within the deposit, with very little attention given to the gold and zircon contents, particularly within the higher grade portions of the strands where these minerals would be expected to be concentrated. This is despite the fact that approximately 16 million ounces of gold has been recovered historically from palaeo-river and beach deposits within the south island of New Zealand.

Seasonal licenced mining below High Water Mark at Barrytown recovers gold in 2012