Annual Report EL 25469 Sliding Rock Well for the period 2 March 2007 to 1 March 2008 Year 1

Abstract

The Exploration Licence was held by A W Mackie and G J Bubner until it was acquired by Western Desert Resources Ltd in May 2007. The tenement covers ground prospective for gold and base metal mineralisation. The project area is located within the Aileron Province of the Palaeoproterozoic Arunta Block, which is aged between 1840-1760Ma. The Arunta Block in this area consists of the Strangways Metamorphic Complex to the north and undifferentiated gneisses and granites to the south. The Arunta Block sequence is overlain unconformably by Amadeus Basin sediments which have been thrust over the older rocks in the Winneckie Nappe, part of the Arltunga Nappe Complex. Strongly deformed rocks of the Arunta Block occur to the north and south of folded outliers of Heavitree Quartzite and Bitter Springs Formation of the Amadeus Basin. The basement rocks consist of undifferentiated gneisses and schists to the south of the Winneckie Nappe. To the north, rocks of the Strangways Metamorphic Complex crop out; including the Cadney Metamorphics, the Erotonga Metamorphics and the Ankala gneiss. Intense shear zones occur in the basement and these zones have been retrogressively metamorphosed or altered to greenschist facies. Tightly folded and faulted Heavitree Quartzite and Bitter Springs Formation occur within the west-northwest trending Winneckie Nappe. The nappe dips to the north and both the Amadeus Basin sediments and the underlying basement rocks have been thrust over the metamorphic rocks to the south. Shearing occurs within the nappe and along its margins, forming altered and mylonitic zones. The gold mineralisation in the Winneckie Goldfield occurs in quartz veins within the sediments of the nappe and in altered basement rocks along its northern margin. Two types of gold mineralisation occur. The majority of the gold has been worked from quartz veins containing pyrite or gossan in the oxidised zone. Gold is sporadically developed in the otherwise barren massive quartz blows and pods. The second type includes stratabound mineralisation in altered schists. The tenement covers the western end of the Winneckie Goldfield. Gold was discovered in the area around 1900. Mining activities took place between 1901 and 1905, and also between 1933 and 1937, with about 1500oz of gold produced. Unrecorded production in the early days may have been about 500oz. An airborne survey was flown by UTS geophysics during November 2007 and January 2008. The survey covered the eastern portion of the tenement. A helicopter EM survey was flown by Geoforce between 15th and 17th January 2008. The survey covered the same ground as the airborne magnetic/radiometric survey. The survey used the SkyTEM system with a terrain clearance of 30 metres. The traverse line spacing was 150 metres. Interpretation of the airborne surveys data had not been completed by the date of this report.