EL 3106 Arrarra Annual Report for period 17 April 2007 to 16 April 2008

Abstract

Exploration activities for the fifth year of tenure consisted of a helicopter-assisted sampling program and Sub-Audio Magnetic (SAM) survey. The SAM survey was aimed at delineating sub-surface conductive structures in the vicinity of the Mamurri Hill prospect, while the outcrop sampling program was aimed at explaining geochemical anomalies defined during the recent geochemical review. Also included in this report is a summary of petrographic descriptions from drill holes in 2006. The SAM survey appears to have been relatively successful in delineating two sub surface conductive units that may be associated with dilational or shear zones. This survey has allowed the generation of two targets which will be followed up in 2008. The geochemical surface sampling results appear to support the presence of a potentially interesting geochemical signature within a few hundred metres of the targets proposed by the initial geochemical review. Further sampling and data review is required to confirm initial results. All exploration work was conducted from the King River camp, located approximately 45 kilometres to the northeast and therefore a helicopter was utilised to assist with transportation. Planned work for the sixth year may comprise follow up mapping and rock geochemistry on selected areas and a RC drill program proximal to Mamurri Hill.