Annual report EL 23391, for the year ended 28 August 2007

Abstract

This report summarises work carried out on Exploration License 23391, Arunta Project, Northern Territory for the year ended 28th August 2007. The Arunta Project is located approximately 250km N-NW of Alice Springs in the Northern Territory. The North Arunta Province is dominated by a series of sulphidic Proterozoic sedimentary sequences on an Archean/Proterozoic boundary zone that have been intruded by late mafic sills. Quaternary and Tertiary cover of variable thickness, conceal large areas of bedrock in the area and although the region has seen some exploration for a variety of commodities (including gold, copper, iron ore, and diamonds) the evaluation of the nickel potential of the area has been very limited to date. During regional compilations by Falconbridge the area was recognised to have potential when the Barrow Creek nickel sulphide occurrence 75-100km east of the project area was noted in regional assessment files. Also, rumors of success in the Andrew Young belt to the south prompted further assessment of the NTGS geophysical and geological datasets. These compilations flagged major regional structures coincident with interpreted mafic bodies in the project area that had potential for nickel sulphides and hence tenement applications were made. Later work by Discovery Nickel showed potential for Mt Isa styles mineralisation. Proto Resources acquired the tenement in June 2006. Principally to follow up untested GEOTEM anomalies defined by Discovery Nickel. Work completed in the area to date, by Falconbridge, Discovery Nickel and Proto includes negotiating an access agreement, compilation of historic and regional datasets, Geotem airborne survey late 2004, interpretation of airborne EM results, magnetic data interpretation, planning for ground EM survey and complete review of multi commodity exploration potential. This annual report provides a summary of the work completed on EL 23391 for the year ended 28th August 2007.