Annual report for year ending 7 December 2010 EL 23571 Reynolds Range

Abstract

Minor desktop studies were undertaken to evaluate the mineralisation potential and outline exploration activities for 2010. Unfortunately the extreme wet year and ground conditions prevented access for on ground exploration activities in 2010. The desktop assessment and evaluation of the existing rock chip dataset and HyMap targets indicates that the exploration of additional, smaller HyMap targets is probably not warranted. However a cluster of rock chips collected from an advanced argillic HyMap target were highlighted for follow up systematic exploration sampling. Two of the 2009 HMC samples from EL 23571 were determined to be of interest with respect to REE mineralisation. The HMC geochemical signature of these samples showed geochemical indicators consistent with the possible presence REE mineralisation and/or alkaline or carbonatitic igneous rock in the source region. Repeat and more detailed systematic stream sediment sampling was planned for these catchment areas to follow up the geochemical signature and evaluate mineralogy of the HMC and its mineralisation potential.