Annual report for EL 25917 Walhallow for the period 29 October 2008 to 28 October 2009

Abstract

Exploration Licence 25917 was granted to Conarco Minerals Pty Ltd on 29th October 2007 for a term of 6 years. The EL comprises an area of 500 sub-blocks (approximately 1,639 sq. km.) and is located on Walhallow and Mallapunyah pastoral leases, approximately 130km SSW of Cape Crawford in the Northern Territory of Australia. In December, 2007, Conarco Minerals Pty Ltd entered into the Jacaranda Alliance Joint Venture with Hancock Prospecting Pty Ltd of Perth, WA in order to carry out exploration on all Conarco tenements, including EL 25917. The Jacaranda Alliance JV comprises Jacaranda Minerals Pty Ltd (50%) and Minerals Australia Pty Ltd (50%). Jacaranda Minerals Ltd is wholly owned by Conarco Minerals Pty Ltd and Minerals Australia Pty Ltd is wholly owned by Hancock Prospecting Pty Ltd. In June, 2008 title to EL 25917 was transferred from Conarco Minerals Pty Ltd to Jacaranda Minerals Ltd and Minerals Australia Pty Ltd in equal shares. In 2002, Conarco conducted a reconnaissance geochemical survey for petroleum exploration along the Tablelands Highway. Geochemically anomalous molybdenum was reported from a sample site located near Bostock Bore on the Walhallow 1:250,000 map sheet area. Subsequent evaluation of the Cretaceous Toolebuc Formation in the Carpentaria and Eromanga Basin of NW Queensland resulted in the realization that Walhallow's molybdenum anomalism could be originating from the Cretaceous. It was considered possible that the Cretaceous sediments at Walhallow could be a close stratigraphic/facies equivalent of the Toolebuc Formation. Assay results from work completed in the 2007-2008 reporting period, show no anomalous Uranium, with two small areas of anomalous Molybdenum and Vanadium within the laterite and on the contact with the underlying Cretaceous sediments. Work completed by the JV during 2008/2009 involved a 28 day ground reconnaissance of the entire tenement. Geochemical samples were taken on a 9 kilometre square grid over the entire tenement, for a total of 149 samples. Rough inaccessible terrain prevented a total of 37 samples from being collected. A total of 149 samples were analysed for a suite of 21 elements incorporating areas displaying elevated radiometric total counts from previously sampled locations. No anomalous uranium, molybdenum or vanadium were reported. The remaining elements assayed showed only background levels.