Annual report for EL 24970 'Daly Range', for the period 14 August 2007 to 13 August 2008

Abstract

Glengarry Resources' Rum Jungle Project is located 65km south of Darwin and 25km northeast of Bachelor along the Stuart Highway and Alice Springs to Darwin Railway line. 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 Bachelor and 12km southwest of the Woodcutters Mine. The Daly Range EL 24970 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 1870 Ma. Multiple phases of folding and faulting affected the Pine Creek rocks between 1880 - 1760 Ma 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 through the northwestern corner of the Daly Range EL. Geology within the Daly Range EL is dominated by domal folding of the Acacia Gap Quartzite defining prominent ridgelines. Older Whites Formation metasediments occupy the core of the anticline. 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 24970 by Glengarry Resources during the reporting period has consisted of a review of all historical exploration data, compilation of available regional geophysical datasets and field validation/inspection of reported gold anomalies at DeMonchaux Creek. Previous reconnaissance traverses and rock chip sampling by Glengarry has confirmed the presence of anomalous gold mineralisation from quartz outcrops at DeMonchaux Creek. Proposed reverse circulation drilling into the DeMonchaux Creek gold anomaly has again been delayed until the 2008-2009 field season due to the inability to secure a suitable drilling contractor within the period.