Third annual report for EL 25578, period ended 10 July 2010

Abstract

During the third year of tenure, reconnaissance field work and sampling was conducted over the tenement with results showing elevated copper, zinc and nickel. Twelve RAB drill holes were drilled for a total of 408m over the large gravity anomaly with elevated levels of zinc, nickel and cobalt. The holes were drilled by Well Drilled Pty Ltd. Arenite, arkose, chert and clays, including weathered and fresh Warramunga granite in the northern section, were intersected. A one metre thick iron rich band occurred in most holes, generally at 15 to 20m depth, with iron concentration on the hand held XRF ranging between 20 to 35%. Some drill hole samples returned results with elevated Zn, Ni, Cu and Co. Prior to drilling commencing an archaeological survey was conducted over the drill target by Earth Sea Heritage Surveys. Reconnaissance field work was also conducted over the tenement as a whole. Forty-three rock chips were taken with XRF results showing elevated copper, zinc and nickel. A portion of the tenement has been relinquished as it is no longer considered prospective. Expenditure for the second year of tenure was $ 47 791 against a covenant of $31 000.