Annual and final report on EL 9701, Frew River, year ending 09-07-2007

Abstract

Prior to Arafura's tenancy, the Kurinelli gold field and the immediate surrounding areas had never undergone systematic exploration using modern geochemical and geophysical methods. Arafura Resources completed a number of low-level gold-in-soil geochemical sampling programs in the Kurinelli-Frew River area in 2004-2006, which in conjunction with regional mapping have increased the geological understanding of the area. Two phases of geochemical exploration were completed across EL 9701. In May - June 2005, a regional soil sampling program (Phase 1) identified a coherent zone of possible low-level gold anomalism over an approximate area of six square kilometres. A second follow-up, more closely spaced sampling program (Phase 2A) was completed in 2006, in order to test the accuracy of the Phase 1 program and to enhance the coherency of the possible low-level Au anomaly. The results of Arafura's two soil sampling programs indicate a broad zone of possibly anomalous low-level gold is present over an area of 1000m x 500m within EL 9701. It was decided that Arafura would relinquish the title for EL 9701 and concentrate exploration efforts on more attractive gold anomalies in the neighbouring AC 74 'Kurinelli' tenement.