ADMIRALTY RESOURCES NL 29 October 2004 Company Announcements by cuiliqing


									                                                     ADMIRALTY RESOURCES NL
                                                                                   ACN 010 195 972
                                                                               ABN 74 010 195 972
                                          Suite 1 – Level 3, 320 Adelaide Street, Brisbane Qld 4000
                                       PO Box 10672, Brisbane Adelaide Street, QLD 4000 Australia

                                                                             Tel +61 7 3229 2677
                                                                            Fax +61 7 3229 4066

29 October 2004

Company Announcements Office
Australian Stock Exchange Limited
4th Floor, 20 Bridge Street

Dear Sir/Madam,

                  SEPTEMBER 2004 QUARTERLY REPORT


   Due Diligence on the El Tofo Iron Ore prospect in Chile concluded that the
   deposit was uneconomic. Due diligence was initiated on the Japonesa Group
   of Iron Ore properties near Vallenar in Chile. Myself and a Consultant visited
   the properties subsequent to the quarter end. An extensive review of the
   literature and reports including a 3D magnetic survey was completed prior to
   visiting the properties. These properties have been extensively drilled and
   sampled and reserve calculations are being checked to determine the extent
   of proven resources;
   The debt facility available from Perolin Investments Pty Ltd was renegotiated
   to a new facility of $1.5 million, and has been partially drawn down;
   The Board has been working closely with Intrepid International Finance Ltd, a
   Hong Kong based financier to raise up to A$50 million in a two year
   convertible note issue. More details will be released soon;
   Hazen Research has completed its draft report and is completing the final
   report for release in early November 2004. The results are encouraging and
   a full release to the ASX will be made once the final report is received;
   Planning has commenced for exploration of the Mistake Creek, NT gold and
   base metal prospect. Subsequent to the end of the quarter, work commenced
   in late October to conduct sampling tests and mapping of the geology to
   better understand the prospect;
   NILNAV Orthopaedics reports that their global distributor, NeuMedix Inc
   completed a very successful launch in Warsaw, Poland in August 2004. They
   completed two operations at the Otwock Hospital which was viewed by more
   than 60 surgeons. They have negotiated a sub distribution agreement for this
     country. Strong sales interest from surgeons and hospitals in South East Asia
     continues and this was evident at the Triennial Asia Pacific Orthopaedics
     Conference held in Kuala Lumpur. Negotiations for distribution are
     progressing well in Thailand, Malaysia and Singapore.
1.    Key Objectives for the Quarter
      a.   Complete the due diligence on the Japonesa Group of Iron Ore
           prospects and the other iron ore prospects identified. Determine if
           these purchases are appropriate, complete the financial and logistics
           modelling, execute the Heads of Agreement contract, and negotiate
           the final agreements.
      b.   Visit Shanghai and Beijing and enter into negotiations with the Chinese
           Iron ore buyers to secure contracts for supply of iron ore prior to final
           contracts being signed with Japonesa Group vendors.
      c.   Evaluate the recommendations from Hazen Research to determine the
           best way to extract the lithium, potash and boron from the Salar.
           Determine the value of the project on an operational basis, with the
           assumption that project finance is available. Seek and evaluate
           expressions of interest and proposals from consulting engineers to
           establish suitable pilot ponds and plant to extract and process the brine.
      d.   Evaluate our consulting geologist’s report to be received after the
           October 2004 work is completed on the Mistake Creek tenement to
           determine the activities to progress the prospect.
      e.   Commence preliminary discussions with investors in the convertible
           note issue and joint venturers to obtain up to A$50 million to develop
           the Rincon Salar and Japonesa projects.
2.    Iron Ore Resource - Chile
      Phillip Thomas, CEO and Consultant Stephen Wee spent five days
      reviewing the eight properties in the Japonesa Group of Iron ore prospects
      owned by Berger, Compania Minera Dan, and Farkas groups. We were
      encouraged by the high iron ore content (63%-65% Fe) contained in the
      assays and the extent of the mines. There are two stockpiles of tailings
      from previous mining in 1977, one of which is a stockpile of 3 million cubic
      metres of fines. Infrastructure is ideal with rail being 5 km away and the port
      of Huasco being 50 km away and well serviced by loading facilities and
      capacity to stockpile more than 500,000 tonnes of ore. Estimation of the
      reserves is being completed and other purchase arrangements are being

3.    Rincon Salar Project – Argentina
      The Company is waiting on the final report of the phase chemistry from
      Hazen Research. It was discovered that the rate of lithium concentration
      varied with the rate of evaporation and several additional tests had to be

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     conducted to identify what stage of evaporation the concentration of the
     brine yielded the highest amount of lithium. In addition a variety of tests to
     remove the magnesium and aluminium from the brine leaving pure lithium
     carbonate were conducted. The University of Salta have been conducting
     tests with different reagents to enhance the economics of this project.
     Subsequent to the quarter end, a two day workshop with CEO Phillip
     Thomas was held in Salta to determine the plan forward to commercialise
     the project and it was decided that pilot ponds and 20 kilometres of roads
     would be established as soon as possible to commence production.
4.   Pykes Hill WA – (M39/159)
     There has been no further progress by Cougar Metals NL.
5.   Mistake Creek, NT (EL 10096, EL 10097, EL 10098)
     The agreement with Kajeena Mining Pty Ltd was finalized and exploration
     planning has commenced. Our consulting geologist is preparing a report on
     completion of the current exploration work which will be due early November
6.   NILNAV Orthopaedics Investment
     During the quarter, NILNAV Orthopaedics (NILNAV) worked with NeuMedix
     Inc, NILNAV’s global distributor to further develop distribution agreements in
     Asia. Neumedix presented at the Triennial Asia Pacific Conference and
     reported strong interest from many countries through out Asia.

Admiralty Resources NL

Phillip Thomas
Chairman and CEO

For further details:
Call 03-9642-3535

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