Annual report on exploration to February 2010

Abstract

This report gives a review of the drilling program carried out by Raxile Pty Ltd During January and February 2010 within EL 24282 and EL 24283 in the Todd River and Ringwood area east of Alice Springs in the Northern Territory. The licences were granted to Raxile Pty. Ltd. on the 7 January 2005 and have been progressively reduced to their current areas of 116 blocks (395 square Km) and 69 blocks (235 square Km) respectively. The licences are located within the Amadeus Basin and are centred approximately 75 and 100 km east south east of Alice Springs. Initial interest in the area arose through the evaluation of Russian remote sensing micro lepton technology. A gold anomaly map produced by the Russians was strongly suggestive of gold distribution diagrams for the Witwatersrand goldfields and as there are a number of other similarities between the Amadeus Basin and the Witwatersrand this added further weight to the concept. The distribution pattern of the micro lepton gold anomaly suggested a relationship to unconformities or disconformities within the Amadeus Basin sequence. Nowhere did the anomaly coincide with any outcrop of the unconformities so that a series of drill holes was the only way to test the veracity of the Russian technology. Initially five to seven 500 metre diamond drill holes were planned but after the first two holes, drilled into the strongest sections of the anomaly, proved unsuccessful the rest of the program was abandoned. The Russian micro lepton technology is believed to have no real basis in fact.