Torrens

The Torrens Joint Venture (Torrens EL 4296) is between Argonaut Resources NL (ASX: ARE) and Straits Resources Limited (Straits earning a 70% interest).

The Torrens Joint Venture is exploring for iron-oxide copper-gold systems in the highly prospective Stuart Shelf region of South Australia (Torrens project).  The Torrens Project is located near the eastern margin of South Australia’s Gawler Craton region (Stuart Shelf), within 50 kilometres of Teck Cominco’s Carrapateena copper-gold discovery and 75 kilometres from BHP Billiton’s Olympic Dam mine.

In early July 2010 the Torrens Joint Venture announced that its application under s23 of the Aboriginal Heritage Act 1988 in South Australia in respect of the Torrens Project (EL4296) had been approved by the Minister for Aboriginal Affairs and Reconciliation.  A judicial review of this decision was dismissed on 17 March 2011 in the Supreme Court of South Australia (Justice Sulan), ensuring that the original s23 authorisation stands.  An appeal against this decision will be heard before the full court of the Supreme Court on 12 September 2011.

On 17 January 2011 Argonaut Resources (ASX: ARE) announced that the Environment, Resource and Development Court (ERD Court) of South Australia (Justice
Tilmouth) determined that Mining (exploration) Operations may not be conducted, pursuant to s 63S(2)(a) of the Mining Act 1971 (SA) on EL4296.

The parties to the Torrens Joint Venture had two independent avenues of appeal available:

1. The Minister for Mineral Resources Development has a discretionary power to overrule the determination
    of the ERD Court within two months of that determination where the Minister considers it to be “in the
    interests of the State” to do so (s 63W of the Mining Act 1971 (SA)); and,

2. The Respondents can make application to the full court of the Supreme Court pursuant to s30 of the
   Environment, Resources and Development Court Act 1993 (SA) within 21 days of the ERD Court
    determination.

The Minister for Mineral Resources Development chose not to exercise his discretionary power to overrule the determination of the ERD Court in this case.  The Minister has indicated that he and his department will provide the necessary assistance for the parties to negotiate an agreement that, with the authorisation of the ERD Court, could displace the earlier existing determination of the ERD
Court (Justice Tilmouth). 

The Torrens Joint Venture is appealing the ERD Court decision of Justice Tilmouth in the full court of the Supreme Court pursuant to s30 of the Environment, Resources and Development Court Act 1993 (SA). The appeal is set down for 10 October 2011.

Straits remains hopeful that an arrangement with the traditional owners can be reached to allow access for exploration activities without the need for further legal action.

Straits Regional

In March 2010, Straits made application for seven Exploration Licences in the Stuart Shelf and Mount Woods regions of South Australia.  To date three of these licences have been granted with target identification well advanced.  Work programmes are planned for the second half of calendar year 2011.

Stuart Shelf Joint Venture

The Stuart Shelf Joint Venture is between UXA Resources Limited (ASX Code:UXA) and Straits (Straits earning a 70% interest). The joint venture includes nine tenements located in South Australia for a total of 3,300km2.