Annual report on exploration activities on EL 25839 for period 21 September 2009 to 20 September 2010 McArthur River Project

Abstract

Exploration activities during the reporting period consisted of a first pass reconnaissance / prospecting program, incorporating soil sampling, scintillometer and XRF surveys, across the VTEM targets identified from the previous years exploration and a combination of ground EM and a Gradient Array IP / Dipole - Dipole IP survey across the T1 target, a well defined EM conductor coincident with a magnetic anomaly. The first pass reconnaissance / prospecting program failed to identify any significant mineralisation, however the ground geophysics at the T1 target defined a strongly chargeable and moderately conductive flat lying semicircular body at approximately 100 metres depth with a thickness of approximately 30 metres and an areal extent of at least 300m x 300m. The response suggests a disseminated metallic sulphide or graphitic body. Exploration on the McArthur River Project during the reporting period was dominated by the initial testing of the higher priority T1 target, which returned a response prospective for base metal mineralisation. First pass drill testing of the geophysical response at T1 will be key to determining if further ground geophysics will be completed at the other VTEM targets identified at the McArthur River Project.