Annual report on EL 25240 'Acacia Creek', for the period 16 November 2006 to 15 November 2007

Abstract

Glengarry Resources' Rum Jungle Project is located 65km south of Darwin and 25km northeast of Batchelor along the Stuart Highway and Alice Springs to Darwin Railway line. The project area is considered prospective for sediment hosted epigenetic structurally controlled gold, lead-zinc and uranium mineralisation. The Project encompasses over 140km2 of prospective Proterozoic stratigraphy in the Pine Creek Geosyncline, proximal to the historical Rum Jungle Uranium Mine and the Woodcutters Lead-Zinc Mine. Rum Jungle produced 0.66M tonnes @ 0.43% U3O8 for 3530 tonnes U3O8 between 1954 and 1971. Approximately 6M tonnes @ 12% zinc and 6% lead was mined from the Woodcutters Mine between 1985 and 1999. Production of 17,800 tonnes @ 10.7g/t gold was also mined from three small. Sundance pits in 1986 and 1993, located 2.5km east of Batchelor and 12km southwest of the Woodcutters Mine. The Acacia Creek EL 25240 is situated 4km east of the Archaean Rum Jungle Complex. The Complex is mapped as two subcropping domal inliers of Archaean schists and fractionated I plus S-type granite gneisses unconformably draped by Lower Proterozoic Manton Group and Mt Partridge Group metasediments of the Pine Creek Geosyncline. The age of the geosyncline is constrained between 2470 and 1870Ma. Multiple phases of folding and faulting affected the Pine Creek rocks between 1880 - 1760Ma resulting in gently folded north-south trending stratigraphy. The sedimentary rocks have been metamorphosed to sub-greenschist facies. The regionally extensive and northeast trending Giants Reef Fault truncates the Rum Jungle Complex and displays dextral strike slip faulting, displacing the Rum Jungle Complex up to 7km. The Giants Reef Fault passes within 1km of the Acacia Creek EL southern boundary. Geology within the Acacia Creek EL is dominated by domal folding of the Palaeoproterozoic Whites Formation metasediments and Coomalie Dolostone. The Whites Formation is dominated by pyritic carbonaceous shale and hosts the Rum Jungle uranium deposits plus base metal mineralisation at Woodcutters. Exploration undertaken within EL 25240 by Glengarry Resources during the reporting period has consisted of the compilation and review of all historical exploration data, compilation of available regional geophysical datasets and field validation/inspection of reported gold anomalies at Acacia North. Reconnaissance traverses and rock chip sampling by Glengarry has confirmed the presence of anomalous gold mineralisation from quartz outcrops at Acacia North. Proposed reverse circulation drilling into the Acacia North gold anomaly has been delayed until the 2008 field season due to the inability to secure a suitable drilling contractor within the period. Reconnaissance mapping and sampling by Glengarry has confirmed the anomalous uranium responses are restricted to Recent-Tertiary surficial fluvial hardpan, lying unconformably over the prospective Proterozoic rocks. This unconformable nature of the fluvial hardpan is believed to have masked earlier surface and shallow auger sampling exploration programmes by previous explorers. Glengarry therefore intends to complete further reconnaissance exploration drilling along the Acacia North trend during 2008, to establish whether additional gold anomalism can be identified along strike.