Annual report on EL 25917 Walhallow Project, for the period ending 28 October 2008

Abstract

Exploration Licence 25917 was granted to Conarco Minerals Pty Ltd on 29th October 2007 for a term of 6 years. The EL comprises an area of 500 sub-blocks (approximately 1,639 sq. km.) and is located on Walhallow and Mallapunyah pastoral leases, approximately 130km SSW of Cape Crawford in the Northern Territory of Australia. In December, 2007, Conarco Minerals Pty Ltd entered into the Jacaranda Alliance Joint Venture with Hancock Prospecting Pty Ltd of Perth, WA in order to carry out exploration on all Conarco tenements, including EL25917. The Jacaranda Alliance JV comprises Jacaranda Minerals Pty Ltd (50%) and Minerals Australia Pty Ltd (50%). Jacaranda Minerals Ltd is wholly owned by Conarco Minerals Pty Ltd and Minerals Australia Pty Ltd is wholly owned by f Hancock Prospecting Pty Ltd. In June, 2008 title to EL25917 was transferred from Conarco Minerals Pty Ltd to Jacaranda Minerals Ltd and Minerals Australia Pty Ltd in equal shares. In 2002, Conarco conducted a reconnaissance geochemical survey for petroleum exploration along the Tablelands Highway. Geochemically anomalous molybdenum was reported from a sample site located near Bostock Bore on the Walhallow 1:250,000 map sheet area. Subsequent evaluation of the Cretaceous Toolebuc Formation in the Carpentaria and Eromanga Basin of NW Queensland resulted in the realization that Walhallow's molybdenum anomalism could be originating from the Cretaceous. It was considered possible that the Cretaceous sediments at Walhallow could be a close stratigraphic/facies equivalent of the Toolebuc Formation. Work completed by the JV during 2007/2008 involved a 5-day helicopter reconnaissance of the Cretaceous escarpments within the area of EL 25917. This field work was undertaken by two Jacaranda Alliance geologists as well as a geological consultant for the Jacaranda Alliance Joint Venture. The purpose of the reconnaissance was to: - Systematically fly along and log the radiometric total count of the escarpment areas. - Visit sites displaying elevated radiometric total counts and - Sample and analyze material from areas displaying elevated radiometric total counts. In all, 26 samples were collected and analysed for a suite of 51 elements. Although no anomalous uranium was located, a strong molybdenum-arsenic anomaly was discovered. Coincident low-level but anomalous silver and gold values may indicate an igneous provenance. Follow up exploration is considered warranted.