Annual report on EL 25240 Acacia Creek, for the period 16 November 2007 to 15 November 2008

Abstract

Glengarry Resources' Rum Jungle Project, encompassing Acacia Creek, is located 65km south of Darwin and 25km northeast of Batchelor 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 Batchelor and 12km southwest of the Woodcutters Mine. The Acacia Creek EL25240 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 1870Ma. Multiple phases of folding and faulting affected the Pine Creek rocks between 1880 - 1760Ma 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 within 1km of the Acacia Creek EL southern boundary. Geology within the Acacia Creek EL is dominated by domal folding of the Palaeoproterozoic Whites Formation metasediments and Coomalie Dolostone. 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 25240 by Glengarry Resources during the reporting period has consisted of a 728m reverse circulation drill program. The purpose of the program was to test the limits of the Acacia North gold anomaly and to constrain a greater understanding on the controls of mineralisation. The highest metre Au intersection was 1m @ 11.2g/t within hole 08ANRC031. An average intersection of 3m @ 4.33g/t was encountered in this same drill hole between 101 and 104m.