QUARTERLY REPORT FOR THE 3 MONTHS ENDED 31 MARCH

Transcription

1 QUARTERLY REPORT FOR THE 3 MONTHS ENDED 31 MARCH 2009 Highlights REDAN / BURTA - RECONAISSANCE SAMPLING RETURNS ELEVATED IRON RESULTS (UP TO 44.6%) CONFIRMING PAST EXPLORATION RESULTS - THE PROSPECTIVE FORMATION MAY EXTEND OVER A FOLDED STRIKE LENGTH OF 16KM AND ACROSS STRIKE FOR SEVERAL HUNDREDS OF METRES PANAMA HAT - POWER AUGER SOIL SAMPLES CONFIRM GOLD TREND AT THE WILLIAMS PROSPECT COMBANING - WORK FOCUSED ON DEFINING GOLD TARGETS NEAR PREVIOUS PRODUCING MINES WHERE RAB DRILLING BY PREVIOUS EXPLORERS RETURNED BEST INTERSECTIONS OF 2M AT 6.80G/T AU FROM 38M AND 2M AT 3.95G/T AU FROM 4M MT AGATE - IP SURVEY TO COMMENCE IN JUNE QUARTER TO BETTER DEFINE COPPER / GOLD TARGETS AT MT SHEILA AND QMH IN PREPARATION FOR DRILLING Project Location Map FOR FURTHER INFORMATION CONTACT: NICK SHEARD EXECUTIVE CHAIRMAN CARPENTARIA EXPLORATION LTD Bus: +61 (7) Figure 1: Location of Carpentaria Exploration Projects

2 PAGE 2 of 7 SUMMARY EXPLORATION Carpentaria Exploration Limited (ASX Code: CAP) has been re-evaluating its exploration portfolio with the aim of prioritising projects and dropping or disposing of lower ranked projects. During the quarter, Carpentaria has also assessed numerous third party projects with a view of acquisition/joint venture of high quality mature projects to further enhance the existing project portfolio. None of the projects assessed have been progressed. Redan JV / Burta Panama Hat JV Combaning Hughenden Coal Project Reconnaissance sampling of iron formation outcrops in these areas has returned elevated iron assays of up to 44.6% with low phosphorous (0.06%) from outcropping magnetite rich rock which has confirmed work carried out by previous explorers. Proximity to infrastructure and possibility of large tonnage make this an encouraging result. Auger drilling results at the Williams Prospect in the Panama Hat JV suggest the continuation of the gold trend beneath cover to the north east. New gold targets are being assessed around known gold occurrences. Targets are being defined near the Mother Shipton mine where historical production of 30,000oz of gold has been reported. A comprehensive regional technical review has confirmed the potential for coal in the Betts Creek Beds of the Galilee Basin particularly in the northern part of the tenement applications. Mt Agate Preparations for an IP survey to better define targets at the QMH and Mt Sheila Prospects are underway. FINANCIAL Cash and deposits totalled A$3,747,938 as at 31 March CORPORATE Issued Capital 55,178,410 ordinary fully paid shares listed 14,821,590 ordinary fully paid shares unlisted (restricted) 21,447,415 options listed ACTIVITIES Carpentaria has been actively evaluating projects with a view of either purchase or joint venture. The main focus in relation to potential acquisitions has been gold projects that could provide Carpentaria with a mineral resource that would provide the potential to develop a mining operation in the near/medium term. Exploration focus has been in the Broken Hill region with reconnaissance rock sampling carried out on the Burta EL in NSW. During the quarter, exploration programs have been developed for the Redan/Burta Project (iron ore), the Euriowie Project (lead/silver/gold plus tin and tantalum), Combaning (gold) and Mt Agate (iron oxide copper gold).

3 PAGE 3 of 7 PLANNED JUNE QUARTER EXPLORATION ACTIVITIES Exploration activities will be focused as follows: Redan JV and Burta EL - A program of Niton Portable X-Ray Fluorescence (XRF) micro analyser sampling and mapping will be undertaken to establish the extent of the iron formation outcrop and evaluate its potential for commercial grade magnetite. Combaning - Delineation of gold targets in and around the Mother Shipton area will occur. At Mother Shipton, RAB drilling by previous explorers included best intersections of 2m at 6.80g/t Au from 38m and 2m at 3.95g/t Au from 4m. Mt Agate - When access conditions improve (due to wet weather), it is anticipated that an IP survey will be conducted to better define targets at the Mt Sheila and QMH gold and copper prospects. Euriowie - Mapping and sampling and geochemical analysis using a Niton portable in-situ XRF analyser will be undertaken in the region where very elevated lead and silver was previously discovered EXPLORATION Iron Redan (Earning 51%) / Burta (100%) - Reconnaissance sampling returns elevated iron (up to 44.6%) confirming past exploration results - the prospective formation may extend over a folded strike length of 16km and across strike for several hundreds of metres. Review of previous work indicated that, in 1960, Enterprise Exploration Co. Pty Ltd (the precursor to CRA Exploration) undertook channel rock sampling over a large area of outcropping NeoProterozoic rocks interpreted to be components of the Braemar Ironstone (Yudnamunta Subgroup of the Adelaide Fold Belt) located to the west of Hawson s Knob. Iron (Fe) concentrations ranging from 36.4% to 49.1% (see figure 2) in relatively fine grained banded magnetite-hematite-quartz rocks were reported. Enterprise did not undertake any further work at the prospect. To confirm these 1960 results, investigate potential deleterious elements and visually observe the grainsize of exposed iron formation at Hawson s Knob, Carpentaria undertook a small check sampling program of selected banded magnetite-hematite rich outcrops which returned elevated iron assays up to a maximum of 44.6% with low phosphorous (0.06%) and acceptable Al, Ti and V concentrations with a visually estimated grain size in the 30 to 100 micron range. Samples have been forwarded for detailed petro graphic examination to establish the exact mineralogy, grain size and texture of the sampled iron rich rocks. Results are awaited. During the next quarter, a detailed rock sampling program using a Niton portable in-situ XRF analyser will be initiated combined with check sampling, geological mapping and ground magnetics to assess the potential of the Hawson Prospect. Aeromagnetic interpretation indicates the formation may extend over a folded strike length of approximately 16km with potential iron rich strata being present across strike for several hundreds of metres (refer figure 2). Together with the proximity to the Broken Hill to Port Pirie railway line, main road (about 30Km), power and major mining centre of Broken Hill, the potential for large tonnage of magnetite resources makes this a very encouraging prospect.

4 PAGE 4 of 7 Figure 2 : Location of Enterprise and Carpentaria sampling overlying the airborne magnetics, (RK is rock chip and CS is a channel sample) Gold Panama Hat - (Carpentaria earning initially 51%) - Power auger soil sampling confirms gold trend at the Williams Prospect Geochemical analyses for 101 nominal C-horizon soil samples collected to test the eastern strike extent of the highly anomalous surface gold, silver, bismuth, copper ( Au-Ag-Bi-Cu) Williams quartz lode were received. Bulk soil samples were taken by power auger at an average depth of 0.7m, split in half and analysed for gold via both fire assay (FA) and bulk cyanide leach (BCL) methods. Base metals, silver and trace elements were analysed by ICP- OES. Samples were taken on a nominal 50m x 5m grid extending 250m to the east of the Williams Prospect (see figure 3). The spatial distribution of elevated Au concentrations is somewhat erratic in detail but in broad terms suggests a simple strike extension of the mineralised zone at Williams is present. The distribution of BCL Ag concentrations supports this interpretation. Figure 3: Williams Prospect - EL Power Auger Grid Gold Results

5 PAGE 5 of 7 Gold (continued) Combaning - (Carpentaria 100%) Work focused on defining gold targets near previous producing mines During the March Quarter, work at Combaning focussed on identifying gold drill targets in the highly prospective western part of the tenement. In this area, the Macquarie Arc Volcanics host a number of prospects and old workings, including Mother Shipton where historically, approximately 30,000oz of gold has been mined from hard rock and alluvial sources (see figure 4). An ongoing review of previous work revealed that surface geochemistry and RAB drilling have identified porphyry/epithermal style gold prospects within two north west striking andesitic sequences. At Mother Shipton, RAB drilling by previous explorers included best intersections of 2m at 6.80g/t Au from 38m and 2m at 3.95g/t Au from 4m..Figure 4 : Combaning prospect location plan.

6 PAGE 6 of 7 Copper / Gold Mt Agate - (100% CAP) No work has been undertaken on this prospect due to access restrictions caused by adverse weather conditions. In order to maximise the value of drill holes an IP survey is being planned to provide drill targets at both the QMH and Mt Sheila Prospects. Coal Queensland Coal Projects - (Carpentaria 100%) - Review completed A comprehensive review of government and historical company data covering the Hughenden Coal Project continued during the quarter with the aim of categorising data, basin interpretation and defining target areas for coal potential. The review has confirmed the potential for shallow coal in the Betts Creek Beds of the Galilee Basin in the northern parts of the applications. Potential target areas have been delineated and upon grant of applications work can proceed to test these areas. In the south west portion of the applications, Carpentaria has decided not to accept 5 of the tenements that were offered by the Department as the targets were confirmed to be too deep. Tin/Tantalum Lead/Silver Euriowie - (Carpentaria owns rights to 100% base and precious metals other than lithium) Preparations are underway for an extensive field program to map the area where high lead / silver samples were previously reported (11.45% lead, 191 g/t silver and 0.72 g/t gold) are underway.

7 PAGE 7 of 7 ABOUT CARPENTARIA Carpentaria Exploration Limited is an exploration company focused on finding base and precious metals and bulk commodities in Eastern Australia. The company holds 100% owned tenements in NSW and Queensland and also has a number of farm-in deals. Most tenements have known mineralized systems and are being explored using modern, efficient technologies. It is Carpentaria s intention to ultimately mine its discoveries. CORPORATE DETAILS Board of Directors: Nick Sheard Executive Chairman Stan MacDonald Non-Executive Director Bob Hair Non-Executive Director Mike Chester Non-Executive Director Capital Structure: Ordinary Shares 67,500,000 Listed Options 21,447,415 Major Shareholder: Giralia Resources 10% Stock Exchange Listing Australian Stock Exchange ASX Code: CAP CAPO Principal & Registered Office: Ground Floor, Boundary Court., 55 Little Edward Street., Spring Hill, Qld 4000 Contact Details: info@capex.net.au Website: Telephone: (61 7) Facsimile: (61 7) PO Box 1019, Spring Hill, Qld., 4004 Share Registry: Link Market Services Limited Level 12, 300 Queen Street Brisbane Qld 4000 The term "Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve. The information in this report that relates to Exploration Results is based on information compiled by Mr Nick Sheard, who is a Member of the Australian Institute of Geoscientists and is a Registered Professional Geoscientist - Mineral Exploration and Geophysics. Mr Sheard is a full time employee of Carpentaria Exploration Limited and Mr Sheard has sufficient expertise which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Sheard consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. For further information please contact: Nick Sheard - Executive Chairman Carpentaria Exploration Limited (+617)

8 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98. Name of entity Carpentaria Exploration Limited ACN or ABN Quarter ended ( current quarter ) Mar-09 Consolidated statement of cash flows Current quarter Year to date Cash flows related to operating activities $A 000 (9 months) $A Receipts from product sales and related debtors Payments for (a) exploration and evaluation ,355 (b) development (c) production (d) administration Dividends received 1.4 Interest and other items of a similar nature received Interest and other costs of finance paid Income taxes paid 1.7 Other Net Operating Cash Flows ,780 Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (b)equity investments (c) other fixed assets Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other Net investing cash flows Total operating and investing cash flows (carried forward) , Total operating and investing cash flows (brought forward) ,805 Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings Repayment of borrowings Dividends paid 1.19 Other capital raising costs Net financing cash flows Net increase (decrease) in cash held , Cash at beginning of quarter/year to date 4,246 5, Exchange rate adjustments to item Cash at end of quarter 3,748 3,748

9 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions Item 1.23 relates to Directors Remuneration, Fees and Superannuation Contributions. 2.1 Non-cash financing and investing activities Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A 000 $A Loan facilities Credit standby arrangements Estimated cash outflows for next quarter Exploration and evaluation Development $A Total 232 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter $A 000 Previous quarter 5.1 Cash on hand and at bank Deposits at call 3, Bank overdraft. 5.4 Other (provide details) $A 000 Total: cash at end of quarter (item 1.22) 3,748 4,246 Changes in interests in mining tenements Interests in mining tenements relinquished, reduced or lapsed Nature of interest (note (2)) Interest at beginning of quarter 6.2 Interests in mining tenements acquired or increased

10 Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions Number quoted Issue price per security (see note 3) (cents) 7.3 +Ordinary securities Quoted 55,178,410 Options Quoted (Exercisable on 30 June 2010) 21,447,415 +Ordinary securities Un-Quoted (restricted) 14,821, Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs 7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Exercise of Options 7.7 Options (description and conversion factor) Number Exercise price Expiry date 7.8 Issued during quarter 3,700, Jun , Jun , Jun Exercised during quarter 7.10 Expired during quarter 7.11 Debentures - (totals only) 7.12 Unsecured notes (totals only) - Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. 22/04/2009 Company Secretary Chris Powell

11 1 This quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.