Annual report on EL 22824, EL 23566, EL 23792 and EL 25007 Plenty River, for period 19 December 2006 to 18 December 2007

Abstract

This is the second annual report on AusQuest's Plenty River tenements, EL's 22824, 23566, 23792 and 25007. The tenements were granted their current combined reporting status on September 10th 2007. Exploration on the project has targeted magnetic dipole anomalies as potential kimberlite or lamproite pipes beneath sand cover. Work relating to the tenement since the last annual report is summarised as follows: Drill samples from the 2006 Rio Tinto drilling programme on EL 25007 and EL 23792 have been evaluated. No chromite or garnet grains indicating a deep depleted mantle source were recovered. No microdiamonds were recovered from fusion of the samples; Examination of magnetic susceptibility data from the 2006 drilling showed that magnetic lateritised sandstone lithologies intersected over two of the four anomalies tested are sufficient to explain the magnetic anomalies; Drilling at the other two targets (a large circular magnetic anomaly) did not intersect magnetic lithologies indicating that the source of the magnetic anomalies lies below the maximum hole depths at these targets of 76 and 102 metres respectively; Rio Tinto Exploration withdrew from the joint venture in June 2007; A helicopter-assisted gravity survey was completed by Daishsat Geodetic Surveyors over the large circular magnetic anomaly referred to above. The survey revealed a dense non-magnetic core within the circular magnetic perimeter. The results are being evaluated before planning further work. No work was completed on EL 22824 and EL 23566. The diamond and Fe-oxide - Cu - Au potential of these tenements is presently under review.