Partial relinquishment report for EL 23687 Lake Woods Project for the period 17 June 2003 to 8 August 2008

Abstract

Exploration Licence 23687 is part of the Lake Woods Project which is located 700km south of Darwin and 200km north of Tennant Creek. The project area is centred on the Ashburton Range which runs north-south along the eastern margin of Lake Woods, a large seasonal lake. The Stuart Highway passes through the centre of the area. Bedrock in the area is Middle Proterozoic Renner Group sediments, intruded by pre-Cambrian dolerite. Previous exploration within the district has focused on the potential for diamonds and base metals but has been limited due to poorly developed drainage and widespread alluvial and aeolian cover. As required by the relevant mining legislation EL 23687 was reduced from 32 to 16 graticular blocks on 8 August, 2008. The area was identified as a conceptual target area based on proprietary methods and modelling conducted by Paradigm Geoscience Pty Ltd. Exploration conducted on the part of the tenement relinquished and described in this report consisted of: - Collection of 17 samples from stream sediment, aeolian sand and rock for multi-element geochemical analysis. - Collection of 4 mineralogical samples from stream sediment for diamond/indicator mineral analysis. - Geological reconnaissance - Completion of an airborne EM survey over the area Work completed to date indicates that the Lake Woods Project area has potential for diamonds, copper-nickel mineralisation and platinoids.