Drill collaboration agreement, EL 25511 Rover Project

Abstract

Castile Resources' tenement EL 25511, located approximately 100km west-southwest of the town of Tennant Creek, was granted in December 2007. Completion of one diamond hole each at the historic Rover 5 and Rover 3 Magnetic anomalies in 2009 for a total of 2 holes, 1,420m and 513 multi-element samples was intended to test magnetic bodies modelled at depths of greater than 350m below surface. The target was typical Tennant Creek style ironstone hosted copper-gold mineralisation. The Rover 5 magnetic anomaly is considered to be a typical Tennant Creek style bulls eye anomaly analogous to Westgolds Rover 1 deposit. The Rover 3 magnetic signature however is actually an inverse anomaly. This was considered due to a reversal in the earths' magnetic field at the time of the deposition of the magnetite in the modelled ironstone. Each drill hole was planned to intersect the modelled ironstone in the centre of the body. Both holes failed to intersect significant magnetic material and a downhole magnetic probe was employed to identify any nearby anomalies. Results of the magnetic probe work are still awaited.