Combined annual report for EL 24984, EL 25176, EL 25195 and EL 25297 Litchfield Project for the period ending 8 November 2009

Abstract

The project area is approximately 100km SW of Darwin and consists of four tenements: EL 24984, EL 25176, EL 25195 and EL 25297. EL 25176 and EL 25195 underwent requirements for 2nd year 50% reduction, and waivers from reduction were applied for EL 24984 and EL 25297. During the third year, EL 25176, EL 25195 and EL25297 were all reduced, and EL 24984 was waived. At the end of the third year; two tenements, EL 24984 and EL 25297, were sold to Anhui Geology and Mining Investment Ltd. as part of a larger sale agreement. The tenement group is located partly over the Litchfield province and partly over the western margin of the Pine Creek Orogen. Exploration potential exists for uranium, base metals, mineral sands and tin. Exploration focused on EL 24984 during the period. Airborne electromagnetic survey VTEM was undertaken on EL 24984 in year 2 to explore for high sulphide style mineralised systems (Sally Malay or Voisey Bay Style) associated with ultramafic rocks intersected in TUC diamond drilling in late 2007. A test flight of 80 line kms was flown and results were reviewed to assess the effectiveness of airborne EM methods in coastal terrains. Helicopter and geochemical reconnaissance of radiometric anomalies and priority targets were undertaken on EL 24984, EL 25195 & EL 25176. A total of 6 soil samples, 4 rock chip samples and 16 spectrometer assays were taken across all tenements.