Annual report for EL 23092, for the period 13 February 2005 to 12 February 2006

Abstract

Red Metal's Urapunga Project in the McArthur Basin comprises Exploration Licence 23092 (Urapunga South) and Exploration Licence Application 23139 (Urapunga North), which are located in northeast Arnhem Land, adjacent to the Roper River, some 490km southeast of Darwin. Landholder consent is necessary for grant of the northern ELA which lies within freehold Aboriginal ground. EL 23092 was acquired to investigate the prospective Vizard Group units within the northern McArthur Basin for lead-zinc deposits similar to the McArthur River deposit. Further work is warranted on the EL to ground truth airborne TEM anomalies and follow-up two unexplained zones of anomalous lead and zinc stream geochemistry, as well as potential diamond pipe targets. Field work is expected to commence after the consent of the local Aboriginal community is provided for the grant of the adjacent EL Application 23139. Work in Year 4 will include ground investigation of airborne TEM features and further geochemical stream sampling, soil sampling, ground based gravity over the two areas of anomalous stream geochemistry as well as the potential diamond targets.