Relinquishment report for EL 10370 Barkly for the period 20 March 2001 to 19 March 2009

Abstract

Exploration License (EL) 10370 Barkly was acquired to search for Tennant Creek style iron oxide copper-gold deposits. Giants Reef Exploration Pty Ltd is a wholly owned subsidiary of Emmerson Resources Ltd. EL 10370 is explored under the Barkly Joint Venture (JV), this JV was inked with Giants Reef, and covers the southeast extension of the Tennant Creek mineral field which has a production history of 5M ounces of gold and 16M tonnes of copper which was won from high grade ironstone related deposits. The JV tenements cover the historical Bluebird and Perseverance workings. Perseverance historical results showed a best result of 3m at 43.2g/t Au from 72m depth. Those workings are covered by a Central Land Council exclusion zone whereas the shallow Bluebird workings where historical results indicate 172t of ore at 9.3g/t Au were produced are outside the exclusion zone. Meteoric Resources currently has a 70% interest and Emmerson (Giants Reef) 30% with management rights being transferred back to Emmerson during February 2009. During the last tenure term Emmerson successfully built a team of highly qualified and skilled, staff and Geoscientists. Work commenced on the analysis of all historic drilling data, which included the validation and assessment of all Historical drilling over Emmerson Tenure, including EL 10370 and then the compilation into a database. A Detailed Ground Gravity Survey, conducted by Fugro Ground Geophysics commenced 27 March 2008. This ground gravity survey was conducted over Emmerson's Tennant Creek tenure package and included the relinquished area of EL 10370. The survey was conducted by three teams, each team consisted of a quad bike and rider equipped with a station meter. The three teams were supported by a Toyota Landcruiser 4WD Ute. The readings were taken on a 500m station spacing's, on lines 500m apart oriented North - South. Readings in areas requiring more detail were taken on 50 station spacing's on 100m spaced lines oriented North - South. The survey was completed during October 2008. 49 station readings were taken in the relinquished portion of EL 10370 and consisted of 49 Regional readings. A Detailed Airborne Magnetic, Radiometric and Digital Terrain Survey was conducted by UTS Geophysics and commenced 26 May 2008 and was completed on 22 July 2008. The survey included areas of the Eastern Project Area (EPA) and included part of the relinquished area of EL 10370. The survey was flown with a FU24 - 954 fixed wing survey aircraft on 75m line spacing's, with 750m tie line spacing's and a sensor height of 25m for a total Line KM of 38,278, with 3,379km's (approximately 9%) being in the EPA. Magnetic Data was captured using a Scintrex Cesium Vapour CS-2 total field magnetometer, Fluxgate three component vector magnetometer, RMS Aeromagnetic Automatic Digital Compensator (AADC II) and a Diurnal monitoring Magnetometer (Scintrex Envi8mag). Radiometric Data was captured using an Exploranium GR-820 gamma ray spectrometer and Exploranium gamma ray detectors. Emmerson's evaluation of this newly captured data in conjunction with previous exploration data and information and as the relinquished area of EL 10370 does not contain any known Warramunga Formation outcrops, the Warramunga Formation is the host rock to virtually all of the well-known Tennant Creek style of ironstone-associated gold-copper-bismuth orebodies, it was recommended that a voluntary reduction of area be actioned for EL 10370. This report records the exploration work done on the relinquished portion of EL 10370 during the period 20 March 2001 to the 19 March 2009. The geophysical coverage of the relinquished portion was in significant.