EL 26034 Tennant Creek Project Annual report for the period 25 February 2009 to 24 February 2010

Abstract

This report covers exploration completed on EL 26034 during the reporting period from 25 February 2009 to 24 February 2010. The tenement is within the Warramunga Province of the Tennant Region, and is 55 kms north-west of the town of Tennant Creek. It occupies an area of about 58 square kilometres, and forms part of Castile's Tennant Creek Project. EL 26034 lies on the north-eastern end of the highly productive Tennant Creek mineral field, and is 10 kilometres to the north of the Warrego Mine. Exploration for the year ending 24 February 2010 included continuation of negotiations towards a heritage agreement with the CLC, additional research leading to the location of 3 previously unreported diamond drill holes on the tenement, and report writing. Because of the sensitive nature of negotiations in this and other parts of the region, and the discovery of the Rover1 Deposit, Westgold will not commit to ground exploration until the CLC and the Traditional Owners have ratified a heritage agreement for the tenement which allows exploration access on the ground. Consequently no field work was completed during the year. Previous exploration has been restricted to flying aeromagnetic surveys at various times, the testing of a number of areas by vacuum geochemical drilling to 5m depth, and three diamond drill holes. Ten of the 19 graticular blocks which comprise EL 26034 have not been tested on the ground. A new aeromagnetic survey was flown in 2008 by Kevron for NTGS, and this data has not yet been fully interpreted for the delineation of Tennant Creek style copper-gold targets. The proposed programme includes detailed ground based gravity and airborne helimagnetic surveys. These surveys will be initiated upon successful finalisation of exploration agreements with the CLC. Based on successful target definition from the above surveys and hopeful discovery of any existing core from previous explorer, then the Company would look to advance drilling of targets if warranted. Please note the past diamond holes were only recently discovered to exist. No record of these holes has been found in any open file reports. Heritage and access negotiations are currently on-going and all field work is subject to suitable agreement being concluded.