The Hammer Hill project is located about 180 km north-east of Alice Springs. It lies within the Harts Range Group of the Irindina province (eastern Arunta Region), a volcano-sedimentary succession that was metamorphosed to granulite facies during the Ordovician Larapinta Event. The numerous mafic and ultramafic units found throughout the Irindina Province may have intruded during the Larapinta Event. These intrusions are considered prospective for magmatic nickel-copper-PGE sulphide mineralisation.

During November 2005-June 2010, the Hammer Hill Project operated under a farm-in agreement with nickel explorer Mithril Resources Limited. The agreement allowed Mithril to earn up to 70% interest in the project by spending AUD$5 million over 6 years. Mithril withdrew from the agreement without earning an interest.

Work conducted by Mithril on the Hammer Hill Project included:

• systematic soil sampling over several areas, which was successful in defining a coherent nickel-chrome anomaly around Hammer Hill and detecting anomalous nickel-cobalt-chrome levels at a number of the other targets;

• acquiring VTEM heli-borne electromagnetic (EM) data. The VTEM survey defined a number of high-priority conductive nickel sulphide targets;

• drill testing of three EM targets on EL 10136. Significant intervals of sulphide mineralisation returned anomalous copper assays, including 4.52m @ 0.39% Cu.