Annual report for EL 25508 Bonya, for the period 13 July 2007 to 12 July 2008

Abstract

This is the first annual report on AusQuest?s 'Bonya' exploration title, EL 25508. This tenement was granted on 13th July 2007 for a period of 6 years. The tenement application was made to cover two gravity anomalies revealed in the East Arunta NTGS Gravity survey 2006. At least one of the anomalies was interpreted as a potential iron oxide - copper - gold target revealed in coincident gravity/magnetics anomalies in new NTGS data. Work during this first year has comprised desktop geoscientific data compilation and evaluation, and a helicopter - assisted gravity survey to infill the NTGS East Arunta gravity data of 2006. This infill gravity surveying was completed by Daishsat Geodetic Surveyors over the two regional gravity anomalies, at 0.5 km centres infilling the 2 km spaced grid of the East Arunta NTGS Survey. The more detailed gravity data, whilst essentially confirming the coincidence of gravity anomalies, suggested that the Jervois 1 gravity source is centred about 1 km east-southeast of the main magnetic anomaly. The Jervois 2 gravity anomaly is a circular anomaly located immediately north of the Lucy Creek Fault zone within a magnetic low. A geological mapping/investigation and geochemical (rock and regolith) sampling program is planned for the 2008 field season to confirm prospectivity, prior to drilling.