Year 8 Annual report for EL 10228 Blueys Project for the period 20 July 2008 to 19 July 2009

Abstract

The tenement of 53.5 square kilometres in area is located about 100km east northeast of Alice Springs in the southern part of the Northern Territory. EL 10228 was granted to Imperial Granite and Minerals Pty Ltd on July 20th 2001. The licence was transferred to Tennant Creek Gold (NT) P/L on January 13th 2004. The licence was purchased by WDR Base Metals Pty Ltd, a wholly owned subsidiary of Western Desert Resources Ltd, on July 20th 2007. The tenement is transected by the Burt Plain-Albarta shear zone on the Arunta Block-Amadeus Basin unconformity. The Arunta Block in this area consists of the Proterozoic Atnarpa Igneous Complex, Cavenagh Metamorphics, and undifferentiated gneisses and granites. The tenement contains Blueys Prospect, Slate Hole Bore Prospect and Dragon on the Ground prospect and been previously explored for silver, base metals, tungsten molybdenite, gold and uranium. Low level airborne magnetic/radiometric surveys were flown over the Blueys Project by UTS Geophysics between November 2007 and January 2008. A high resolution helicopter borne EM survey was completed over the entire Blueys tenement by Geoforce P/L using their SkyTEM system was completed in January 2008. During June 2008, a two diamond hole drilling programme was completed. During the current year further rock chip sampling was conducted over the old Blueys prospect and the southern thorium anomalie. Samples were taken of zones of high scintillometer counts over these thorium anomalies. One rock chip sample returned anomalous Zirconium and rare earth element values. Rehabilitation of the drill sites and access tracks from drilling programme was completed late in 2008. The proposed exploration programme for the next year (year 9) will include geological mapping, gridding, ground radiometrics and rock chip sampling over Thorium anomalies.