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23. EXPLORATION EXPENDITURE (NON-CURRENT) 

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The ultimate recoupment of costs carried forward for exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of the respective mining areas. Amortisation of the costs carried forward for the development phase is not recognised pending the commencement of production. 

During the year exploration and evaluation expenditure of $53,798,510 relating to the Wingellina Nickel Project was transferred to Mine Properties and Development. Completion of the first phase feasibility study in 2008 and signing the heads of agreement with Jinchuan during the year to advance the project. 

During the year a review was undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Exploration and evaluation expenditure of $1,189,720 (2010: $295,820) was written off to the income statement, $38,253 (2010: $41,345) of this expense is attributable to exploration and evaluation expenditure written off in relation to the Collingwood Tin Project (refer to note 11). The major expenditure written off in the current financial year relate to the Agaton Phosphate Project ($580,524) and the Mt Bischoff Tin Project ($359,272). The major expenditure written off in the previous financial year related to areas of interest within the Wingellina and Claude Hills Projects. Management decided to abandon future exploration of these areas due to low potential from results returned in the areas. 

24. TRADE AND OTHER PAYABLES (CURRENT) 

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(a) Trade creditors are non-interest bearing and generally on 30 day terms. 

(b) Sundry creditors and accruals are non-interest bearing and generally on 30 day terms. Due to the short term nature of these payables, their carrying value approximates their fair value. 

