Combined annual exploration report for the period ending 26 October 2010

Abstract

Exploration for phosphate at the Brunchilly Project consisted of field mapping, rock-chip sampling (173 samples) and reconnaissance Reverse Circulation (RC) drilling (VGRC001-014, 1878m, 626 composite drill samples) in the reporting period. An open file literature review, acquisition and reprocessing of geophysical data, an AAPA register search, acquisition of NRETAS environmental data and the compilation of a Mining Management Plan and XRF analysis of historic water bore chips were also completed. Detailed surface mapping and rock-chip sampling were completed to gain a greater understanding of the lithological and structural controls within the project area. No significant rock-chip results were recorded. Although no high-grade phosphate drill intercepts were recorded, the first pass drill results were encouraging with several elevated phosphate assays received. The best intercept was 24m @ 3.36% P2O5 in VGRC005. Further drill targeting using recent detailed surface mapping, geophysical interpretation and modeling (aeromagnetics and gravity) and anomalous new phosphate drill intercepts is planned for the 2010-2011 reporting period.