Published mechanical and thermal properties data on a variety of materials was gathered, with focus on materials that have potential with respect to developing wear resistant and damage tolerant composite for mining industry applications. Preliminary core materials of interest include but are not limited to: Diamond, Tungsten Carbide and Cemented Tungsten Carbides, Carbides of Boron, Silicon, Titanium and Aluminum, Diboride of Titanium and Aluminum, Nitrides of Aluminum, Silicon, Titanium, and Boron, Aluminum Oxide, Tungsten, Titanium, Iron, Cobalt and Metal Alloys. Preliminary boundary materials of interest include but are not limited to: W metal, WC-Co, W-Co, WFeNi, and Mo metal and alloys. Several FM test coupons were fabricated with various compositions using the above listed materials. These coupons were consolidated to varying degrees by uniaxial hot pressing, then cut and ground to expose the FM cell structure. One promising system, WC-Co core and WFeNi boundary, was consolidated to 97% of theoretical density, and demonstrates excellent hardness. Data on standard mechanical tests was gathered, and tests will begin on the consolidated test coupons during the upcoming reporting period. The program statements of work for ACR Inc. and its subcontractors, as well as the final contract negotiations, were finalized during the current reporting …