1. CENTRAL MURCHISON GOLD PROJECT

The Central Murchison Gold Project (CMGP) is located between the towns of Mt Magnet and Cue approximately 600km north-east of Perth, Western Australia. The Project access is via a sealed highway from Perth or via air with a sealed airstrip at Mt Magnet. The Dampier to Bunbury pipeline runs within close proximity to the Project area, potentially facilitating a gas powered electricity source.
CMGP contains three key project areas synonymous with the three historic mining centres. These are:

    • The Day Dawn Goldfield
    • The Murchison Bell Project
    • The Cuddingwarra Goldfield

Central Murchison Gold Project showing historical production from each of the three key project areas of Murchison Bell, Day Dawn and Cuddingwarra.

Regional Geology
CMGP is situated within the Mt Magnet greenstone belt in the Murchison Province of the Archaean Yilgarn Craton. The Mount Magnet greenstone belt consists of a complexly deformed sequence of ultramafic, mafic and felsic volcanics with interbedded banded iron formations (BIFs) and other sediments.

The figure below highlights the regional setting of the Murchison Province which is characterised by a granitoid – greenstone terrain. The Cuddingwarra deposits lie along the north-south orientated Cuddingwarra Shear, whereas both the Great Fingall and Big Bell deposits lie along north-easterly orientated structural trends. Gold mineralisation at all deposits indicates a strong structural control.

Simplified Geology of the Murchison Province and project areas.

Current Resources
Substantial remnant resources and newly defined gold exploration targets exist within the titles. The Central Murchison Gold Project is now the main focus of Aragon with the clear aim to expand the resource base and advance towards production.

Total current JORC resources of approximately 1.5 million ounces with over 900,000 ounces in the “indicated” category at 4.7g/t have been defined. The summary resource table demonstrates the magnitude of the resource inventory and the number of targets that have proven production history and which there remains potential to increase inventory at current gold prices. In addition, exploration works completed in the six years since closure of operations has defined many new targets and exploration opportunities.

Project Overview
Day Dawn Goldfield

The Day Dawn mining centre has an estimated historic production of approximately 1.6 million ounces and the current total Identified Mineral Resource estimate (JORC) is 488,000 oz.

The Day Dawn Goldfield is characterised by the favoured host of the Great Fingall Dolerite (GFD). This geological unit manifests as a contrasting brittle host that allows quartz-filled fault and shear structures to widen and ramify establishing larger mining structures. The GFD coincident with numerous indentified exploration targets and historic workings along its strike and there remains excellent potential to define further deposits and to expand existing open pits and underground resources.

The Great Fingall underground mine, which was closed in 1918 is an exciting opportunity to re-establish a long term high grade operation due to the grade and quantity of resources (902,000 tonnes @ 9.5g/t for 275,000 oz). A claim, requiring clarification of a 49% Joint Venture interest exists below 500m.

More recently the Great Fingall open pit has produced approximately 82,000 ounces from ramified quartz lodes that splay off the main Great Fingall structure and a remnant mineable resource of 88,000 oz remains in the floor of the current pit. Aragon believes that there is excellent potential to define further significant mineralisation along strike adjacent to the pit limits.

Underground resource extensions will also be targeted at the neighbouring Golden Crown underground mine where the current total Identified Mineral Resource estimate is 238,000 tonnes @ 8.3g/t for 63,000 oz. Previous work has identified extensive high grade reefs and splay development.

The Cuddingwarra Project

The Cuddingwarra mining centre has an aggregate historic production of approximately 800,000 oz. The current total Identified Mineral Estimate (JORC) is 349,000 oz within numerous historical pits and prospects. Since mining ceased in the area, about 6 years ago, exploration has continued. A comprehensive database, including a recent Sub Audio Magnetic survey reveals many targets still to be evaluated.

Aragon has identified a number of high priority exploration targets worthy of drill testing. In particular, de-magnetised zones of the mafic sequence indicated in the imagery are interpreted to result from cross cutting structures that have allowed for the introduction of mineral bearing fluids and these areas are considered to hold excellent potential for additional new discoveries similar to those discovered and mined in the field in more recent times.

In addition, there remain obvious opportunities for extensions of the previously mined deposits at Black Swan South, Rheingold and Golden Gate.

The Murchison Bell Project

The Murchison Bell mining centre is an elongate trend of Archaean greenstone metamorphosed to hornblende facies and transacted by a major shear zone extending several kilometres in a north-east south-west direction. Previous production along the shear has won 2.6 million ounces from open pit and underground operations and there remains excellent potential to define additional deposits along it strike length. The current total Identified Mineral Resource estimate (JORC) on the line of lode is 657,000oz.

Structural jogs along the shear have resulted in economic accumulations of lensoidal mineralisation that vary from 6m to over 35m in width and extend to a depth of at least 1500m below surface. Shallow historical drilling has identified areas of anomalism and the proven structure remains under-explored at depth adding to its potential.

2. MISSION AND CABLES GOLD PROSPECT

Located just 7km north of the Darlot Gold Mine in the gold rich Yandal Belt of Western Australia the Mission and Cables Prospects are located in a zone of structural deformation extending north from the Darlot Gold Mine. Historical shallow drilling within this zone has reported high grade gold assays. Aragon has since completed a Sub Audio Magnetic Geophysics Survey to better define the structural controls at depth and has then followed this up with successful drilling campaigns that have resulted in numerous high grade gold assays. Please refer to company announcements for details of drilling results.

Mission and Cables Prospects.

Mission Prospect
Drilling at the Mission Prospect in 2006 identified a zone of over 400m in strike length which contains significant supergene gold mineralisation. The zone remains open along strike and wide space geochemical drilling has identified gold anomalism approximately 1.5 km north on what may be an extension to the zone. RC drilling by Aragon has returned numerous high grade gold results such as:

    • 7m @ 11.35g/t, including 2m @ 33.62g/t
    • 2m @ 9.45g/t, including 1m @ 14.00g/t
    • 3m @ 11.40g/t, including 1m @ 29.65g/t
    • 3m @ 11.20g/t, including 1m @ 24.60g/t
    • 2m @ 18.62g/t, including 1m @ 20.00g/t
    • 2m @ 28.29g/t, including 1m @ 55.85g/t
    • 1m @ 72.42g/t

Cables Prospect
The Cables prospect is located immediately west of the Mission Prospect and has been drilled to define a large NNW trending 3km long zone of highly anomalous supergene gold in a similar geological setting to the Darlot Mine. Significant gold results from the limited previous deeper RC drilling includes 5m @ 4.2g/t Au, 2m @ 9.1g/t Au, 3m @ 9.0g/t Au, 11m @ 2.7g/t Au and 2m @ 4.9g/t Au. Aragon has continued to target primary gold mineralisation within the magnetic dolerite host. Selected significant results from the RC drilling completed by Aragon include:

    • 2m @ 23.94g/t
    • 3m @ 6.63g/t, including 1m @ 17.30g/t
    • 7m @ 4.46g/t, including 1m @ 17.35g/t
    • m @ 1.58g/t, including 1m @ 5.53g/t
    • 3m @ 16.75g/t, including 1m @ 36.00g/t
    • 7m @ 27.53g/t, including 1m @ 77.60g/t
    • 4m @ 41.96g/t, including 1m @ 107.50g/t
    • 3m @ 18.85g/t, including 1m @ 72.20g/t

There remain numerous untested drill targets defined by the SAM survey in the form of structural dilatation zones where gold deposition is most favourable. While at the current stage of exploration it is too early to report a mineral resource, it is clear from the results to date that the area has the potential for a new primary gold discovery.

3. LAKE LEFROY NICKEL PROSPECT

The Kambalda region is prospective for both orogenic gold and massive Ni sulphide mineralisation and has a history of extensive production from mines such as the Long (200,000t Ni) and Beta-Hunt (nickel) (35,000t Ni).

The project area is located over part of the Aztec Dome which exhibits a similar regional magnetic image to that of the Kambalda Dome. The aim of this work is to test for the presence of conductive nickel sulphide mineralisation associated with ultramafics units around the dome.

Regional magnetics at the Lake Lefroy and Hogans Prospects.

A SQUID MLTEM ground geophysical survey has been done so to define nickel targets beneath the lake surface. SQUID sensor systems have become an accepted tool for ground-based TEM prospecting. A particular advantage of these sensors, compared to the more conventional coil sensors, is their enhanced conductance discrimination capabilities. This enhancement enables detection of highly conductive targets either buried beneath a conductive overburden or located close to a conductive host rock. The SQUID class of TEM sensor has been responsible for a number of major new nickel-sulphide discoveries worth billions of dollars.

Plan view of SQUID MLTEM survey area, and cross section showing potential drill targets.

This incomplete survey has already identified a number of potential nickel targets. Unusually wet conditions on the lake has hampered progress however Aragon will complete the survey as soon as practicable.

4. TERRITORY PHOSPHATE PROSPECTS

In August 2008 Aragon completed the acquisition of Territory Phosphate Pty Ltd (“Territory”). The key assets of Territory are three granted exploration licences and one exploration licence application which cover the Ammaroo and Lady Judith Phosphate Prospects in the southern Georgina Basin and western Wiso Basin, Northern Territory. Aragon has subsequently submitted an application over an area with similar phosphate potential referred to as the Barkly Phosphate Prospect. The tenements cover shelf facies phosphatic beds in Lower Cambrian sediments that border the Proterozoic Davenport Inlier. Substantive phosphatic sediments extend in a belt around the periphery of the Georgina Basin and are hosted in Lower to Middle Cambrian marine carbonate and clastic sediments including mudstones, claystones and limestone.).

Location map showing the Ammarro and Lady Judith and Barkly Phosphate Prospects

Ammaroo Phosphate Prospect
Excellent results of significant phosphate mineralization from shallow depths have been confirmed. The granted exploration licences are located within 165km of the existing Adelaide – Darwin Railway Line in the southern Georgina Basin, Northern Territory and total 3,765 km².

The average depth to the top of the mineralisation in the core area is just 31.4m making it amenable to an open cut mining scenario. While at the current stage of exploration it is too early to report a mineral resource it is clear from the results to date that the area has the potential for a new large scale phosphate discovery.

Drillhole location over core area of significant phosphate mineralisation showing depth to mineralisation contours of 60m (red outline) and 40m (yellow outline).

An additional 17 drill holes have been completed along existing tracks in the greater area and are designed to identify regional trends as to the depth of the phosphatic beds. This drilling confirms the presence of extensive phosphatic beds over a very large area and shows that there is great potential to discover additional near surface phosphate mineralisation. Aragon will continue to evaluate this new data to assist in further exploration of the greater area while also focusing on advancing the newly discovered shallow phosphate deposit to a JORC compliant resource.

First pass aircore drillhole locations. Drillhole colour corresponds to the highest downhole P₂O₅ assay result. Analysis done by Australian Laboratory Services Pty Ltd using whole rock XRF method AME-XRF12.

Lady Judith Phosphate Prospect
Application ELA24994 is located approximately 280km west of the Alice Springs – Darwin railway line on the western edge of the Wiso Basin. Phosphate assays of up to 31% P₂O₅ over 6 metres have been reported. Water bore RN020989 located within the tenement has yielded an assay of 28.2% P₂O₅ over 3 metres from a depth of 15 metres and another interval of 2.2% P₂O₅ from 72 to 75 metres. The phosphatic intersection is in Hooker Formation mudstone and silty limestone.

Schematic west to east stratigraphic section across Wiso and Georgina basins showing the stratigraphic location of phosphate occurrences identified in a study conducted by the Northern Territory Geological Survey during 2004 and 2005.

Barkly Phosphate Prospect
The Barkly tenement application is nearby to the significant phosphate occurrences of Buchanan Dam and Alroy. The shelf facies phosphatic beds in Lower Cambrian sediments are interpreted to continue into the tenement and provide great potential for the discovery of additional shallow phosphate mineralisation at similar grades.

Peter Gerard Cook (Non Executive Chairman)
Mr Cook is a geologist (BSc (Applied Geology)) and mineral economist (MSc (Min. Econ)) and is the Non Executive Chairman of Metals X Limited. In recent years he has been the Managing Director of Metals X, Hill 50 Limited, Harmony Gold Australia Pty Ltd, Abelle Limited and the chairman of Metals Exploration Limited. He has considerable experience in the fields of exploration, mining project and corporate management of listed entities in the resource sector. He is a member of AusIMM.

Paul Garrett Benson (Executive Director & Chief Executive Officer)
Mr Benson is a geologist (BSc (Geology), MAusIMM, MAICD) with over 17 years experience the mining industry. He has considerable experience in the exploration and development of gold and tin projects in Australia. Prior to joining Aragon Paul was employed by Metals X Limited initially as the Geology Manager for the Collingwood Project, managing the geological and environmental aspects of the project since construction and since April 2006 as General Manager of the Collingwood Tin Project. Prior to joining Metals X, his previous roles include Exploration Geologist with Consolidated Gold at Davyhurst/Riverina WA, Underground Mine Geologist with Abelle at Gidgee WA, Project Geologist with Barrick at Lawlers WA and Senior Exploration Geologist with Westcoast Mining at Tuckabianna WA.

Paul was appointed Non Executive Director of Vital Metals Ltd in April 2009.

Simon Eley (Executive Director)
Simon Eley is a corporate/commercial lawyer and spearheaded the acquisition of the Central Murchison Gold Project. Simon has over 12 years practical and corporate experience in the mining and resources sector. Prior to joining Aragon, Simon worked with ASX200 company Aquila Resources Limited where he worked closely with the executive management in corporate strategy, assessing potential acquisitions and managing divestments. Simon was engaged as the Corporate Manager for Manhattan Resources Pty Ltd that was the subject of a takeover by Uranio Limited (and re-named Manhattan Corporation Limited), an ASX listed uranium exploration company. Simon was involved with the creation, promotion and management of Manhattan Resources Pty Ltd.

Simon worked for Woodside Petroleum Limited. He was a part of the Chinguetti Project management team based in Mauritania for Woodside and chief legal advisor reporting to the President & General Manager. His responsibilities in Mauritania extended to the management of the supply chain responsible for the significant operational, exploration, and capital expenditure requirements of the project. Simon was an integral part of the leadership team tasked with maximising Woodside’s investment in the region. Simon has worked previously for ASX listed Clough Ltd and legal firm Clayton Utz. Simon has hands on experience in open-pit and milling operations in base metal and gold mines in Western Australia and the Northern Territory.

Ben Pollard (Non Executive Director)
Mr Pollard is a Geologist with significant mining, exploration and management experience in the gold industry throughout Western Australia. He brings to the Company exploration, mine planning and resource estimation skills suited to the project development and Company’s expansion plans through 2010. He is also Principal Geologist of BMGS Perth managing geological consulting services in Australia and overseas.

Brian David Thomas (Non Executive Director)
Mr Thomas is a geologist (BSc, MBA, SA Fin, MAusIMM, MAICD) with over 20 years of mining and exploration industry experience complemented by 12 years in the Australian financial services sector. He is currently Managing Director of ASX listed Chrome Corporation Ltd and was one of the founding directors of Navarre Resources Pty Ltd prior to its takeover by Westgold Resources NL. He was previously a Director with Westpac Institutional Bank sourcing Energy and Resources finance opportunities, which followed a period with Merrill Lynch Investment Banking Group, MacIntosh Corporate and Morgan Corporate. The shift to the finance industry followed an extended period of operational management in the resources sector with both production and exploration roles.

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