Third annual report on EL 22824, EL 23566, EL 23792 and EL 25007 Plenty River, for period 19 December 2007 to 18 December 2008

Abstract

This is the third annual report on AusQuest's Plenty River tenements, ELs 22824, 23566, 23792 and 25007. The tenements were granted their current combined reporting status on September 10th 2007. AusQuest's exploration on the project formerly targeted magnetic dipole anomalies as potential kimberlite or lamproite pipes beneath sand cover. A helicopter-assisted gravity survey in 2007 revealed a coincident gravity anomaly over a previously identified magnetic complex now referred to as the Caroline feature and work in 2008 has focussed on this. RTE had drilled the large circular magnetic anomaly in 2006 however did not intersect magnetic lithologies indicating that the source of the magnetic anomalies lay below the maximum hole depths at these targets of 76 and 102 metres respectively. The gravity survey completed by Daishsat Geodetic Surveyors over the large circular magnetic anomaly revealed a dense non-magnetic core within the circular magnetic perimeter. This may have similarities to an Iron-oxide - Cu - Au system. The gravity and magnetic data have been modelled and evaluated during 2008 before planning further work. Magnetic rocks on the south-western tenement EL 23566 were identified as a prominent northwest trending belt of magnetic rocks which may be related to similar rocks hosting disseminated nickel sulphides 70km to the northwest. No work was completed on EL 22824 and the tenement was surrendered in November 2008. Compulsory partial reductions were completed on tenements EL 23566, 23792 and 25007.