Combined annual exploration report for the period ending 26 October 2010

Abstract

Exploration for phosphate at the Elliot (Lakewoods) Project consisted of field mapping, rock-chip sampling (92 samples) and reconnaissance Reverse Circulation (RC) drilling (VGRC022-031, 10 holes, 1326 m, 442 composite drill samples) during the reporting period. An open file literature review, acquisition and reprocessing of geophysical data (gravity survey), an AAPA register search, acquisition of NRETAS environmental data, Mining Management Plan compilation and XRF analysis of historic water bore chips (522 samples) were also completed. Surface mapping was completed to gain a greater understanding of the lithological and structural controls within the project area. A rock-chip sampling program was completed during the mapping program. No significant rock-chip results were recorded. Assay results from holes VGRC022-031 are pending and will be presented in the next reporting period. In addition, 6 historic NQ diamond drill holes (163.0 m) were logged at the NTGS, Darwin and 8 samples cut and submitted to ALS for multielement analyses. No anomalous phosphate values were recorded in these core samples. Further drill targeting using recent detailed surface mapping, geophysical interpretation and modelling (aeromagnetics and gravity) and drill results when received is planned for the 2010-2011 reporting period.