The Mount Remarkable Project

(copper-gold, lead-zinc & uranium)

The Mount Remarkable Project, including the Barbara copper deposit, is centred about 60 kilometres northeast of Mount Isa. This project, which comprises mostly contiguous tenements covering around 1100 square kilometres, is considered prospective for copper-gold, sediment hosted lead-zinc-silver and uranium mineralisation.

The Mount Remarkable Project tenements are mostly situated on the western side of the Mary Kathleen Fold Belt adjacent to the Mount Remarkable Fault.

All tenements are 100% owned by Syndicated apart from two tenements (EPM16112 and EPM16197) covering the north-western part of the Barbara copper prospect and the area surrounding the Blockade copper mine that are in joint venture with Mount Isa Metals Limited (the Leichhardt Joint Venture). Syndicated holds 51% and management.

Syndicated's aim is to delineate sufficient resources at the Barbara Project to justify a stand-alone mining and processing operation. Successful exploration programs to date have focussed on RC drilling of established copper targets along with regional soil and rock chip geochemical sampling programs over the terrain adjacent to the principal structural zones and magnetic anomalies.

Uranium deposits such as the Mary Kathleen deposit located about 30 kilometres to the south east of the Mount Remarkable tenements occur in the Mount Isa Inlier. Syndicated intends to assess the prospectivity of the Mount Remarkable project tenements for uranium mineralisation, including several uranium prospects evaluated in previous years.

Barbara South Lode

Exploration during the past year has focussed on RC and diamond drilling programs at the Barbara copper project. The maiden resource estimate for the Barbara South Lode was announced in October 2008 and current programs are designed to expand this resource.

Significant intercepts from diamond drilling at Barbara South Lode include:

• 16.3 metres at 2.27% Cu and 0.17 g/t Au from 11.7 metres in BADD001
• 31.47 metres at 2.56% Cu and 0.12 g/t Au from 166.53 metres and 13.81 metres at 1.67% Cu and 0.22 g/t Au from 207.19 metres in BADD002
• 20 metres at 4.97% Cu and 0.38 g/t Au from 105 metres in BADD003

In addition to significant copper and gold values the deposit contains elevated concentrations of cobalt and silver.

Hellman & Schofield Pty Ltd ("H&S"), an independent geological consultancy based in Sydney, New South Wales, was contracted by Syndicated to provide a resource estimate for the Barbara copper deposit within tenements owned 100% by Syndicated. The estimates have been classified using the JORC Guidelines.

The mineral resource estimates based on a 0.5% copper and 1% copper cut off are tabulated below.

Table 1: Resources for the Barbara South Lode - October 2008

0.5% Cu
Category	Tonnes	Cu %	Au g/t	Cu Tonnes	Au ozs
Indicated	400,000	1.51	0.17	6,000	2,200
Inferred	1,970,000	1.63	0.15	32,000	9,400
Total	2,370,000	1.61	0.15	38,000	11,600
1% Cu
Category	Tonnes	Cu %	Au g/t	Cu Tonnes	Au ozs
Indicated	250,000	1.99	0.21	5,000	1,700
Inferred	1,280,000	2.11	0.19	27,000	7,600
Total	1,530,000	2.09	0.19	32,000	9,300

(Based on modelled density, minor rounding errors may occur)

The mineralisation at Barbara is related to a northwest trending gossanous shear zone that has been mapped along a length of 1700 metres. Strongly gossanous material extends over a strike length of about 550 metres in the centre of the zone from which several abandoned shafts exploited oxide copper ore. The mineralisation comprises semi-massive sulphide and stringer veins hosted in Mesoproterozoic-aged rhyodacitic volcanics.

The mineralised zone is between 5 and 40 metres thick and dips at about 60º to the southwest and appears to have a moderate plunge to the southeast. The base of oxidation is relatively shallow extending to between 10 and 20 metres vertical depth. Approximately 6.4% of the resources are within the oxidised and partially oxidised domains.

The deposit remains open at depth.

Barbara North Lode

The North Lode is located within the Barbara shear zone approximately 400 metres along strike to the north of the South Lode within EPM 16112 (51% Syndicated).

RC programs were completed late in 2009 to test the North Lode to a vertical depth of 100 to 150 metres and an initial resource estimate for the deposit is in progress. The deposit is open at depth and extensional drilling is planned for 2010 along with metallurgical testwork and pit planning.

Mining and metallurgical studies

Syndicated engaged mining consultants to commence an assessment, for in-house planning purposes, of the potential of mining the Barbara South Lode. Indicative open-pit optimisations using what are considered to be reasonable assumptions on mining and treatment costs and metal prices have been undertaken. The deeper section of the deposit which may not be recoverable by open-pit methods has also undergone some early-stage assessment for its potential for recovery by underground mining.

Preliminary flotation testwork was undertaken by AMDEL Mineral Laboratories in Perth on two composite samples of sulphide ore grading 3.5% Cu and 4.9% Cu collected from Syndicated's diamond drilling program. The testwork comprised tests to assess the effect of grind size on flotation performance and flotation cleaner tests. The results show that a saleable copper concentrate grade of 25% with copper recoveries of 91% and 96% could be achieved from these composites. A mineralogical examination of the cleaner concentrates showed both samples to be very similar consisting of 80-85% chalcopyrite, 15% iron sulphide and less than 5% non-opaque gangue.

Other targets

Syndicated has identified a range of high priority drilling targets at the Mount Remarkable project within a 20 kilometre radius of the Barbara deposit. Targets including the Green Zone, Greenback, North Gossan, Referee, Trey Bit, Mount Margaret and Mount Hutchinson will be tested by an aggressive program of resource expansion and exploration drilling planned to commence in early March 2010.