Combined Annual Exploration Report CR111, EL 24984, EL 25176, EL 25195 and EL 25297 for period ending 8 November 2008 Litchfield Project

Abstract

The project area is approximately 100 km SW of Darwin and consists of five tenements: EL 24984, EL 25176, EL 25195 and EL 25297. Three tenements underwent requirements for 2nd 50% reduction with a waiver from reduction applied for EL 24984 and 50% reduction completed for EL 25176 and EL 25195. The tenement group is located partly over the Litchfield province and partly over the western margin of the Pine Creek Orogen. Exploration potential exists for Uranium, base metals, mineral sands and tin. Exploration focused on EL 24984 during the period. Airborne electromagnetic survey VTEM was undertaken on EL 24984 to explore for high sulphide style mineralised systems (Sally Malay or Voisey Bay Style) associated with ultramafic rocks intersected in TUC diamond drilling in late 2007. A test flight of 80 line kms was flown and results are undergoing detailed analysis. Exploration on EL 25176, EL 25195 and EL 25297 included historical data compilation and a review of uranium targets (EL 25176, EL 25195) and tin targets (EL 25297). Exploration next period will again be focused on EL 24984 and based on the review of the VTEM test flight data. Dependant on the results an appropriate geophysical EM system is to be chosen to complete the EM flight. Helicopter and geochemical reconnaissance of radiometric anomalies and priority targets will be undertaken on EL 24984, EL 25176, EL 25195, EL 25297.