Combined annual report on EL 27398, EL 27399, EL 27400 and EL 27404 Northern Territory Base Metals Project 10 February 2010 to 9 February 2011

Abstract

The area is highly prospective for base metal mineralisation due to its unique geology; the interaction of the Cambrian aged Antrim Plateau volcanics and the underlying Limbunya group lithologies, and its similarity to the Norilsk style Cu-Ni/PGE deposit which is being used as the exploration model. Due to this the area has been the focus of numerous reconnaissance and explorative activities in the past and present. They are located on numerous pastoral leases approximately 580 kilometres S/SW of Darwin. Based on this, Spitfire acquired the licences, deemed the Northern Territory Base Metals project, and for first year exploration undertook in depth literature reviews of available data and online magnetics to determine the viability of them individually. Due to financial limitations and other commitments, no fieldwork was undertaken except on licence EL 27400. The fieldwork on EL 27400 has assisted with designating reconnaissance targets. After reviewing the licences, Spitfire is focusing its attention on EL 27399 and EL 27400 due to noticeably higher magnetic anomalies being present. A field visit conducted in late 2010 allowed numerous field observations to be made at EL 27400 and will assist in further definition of exploration and sampling targets. Further work was not undertaken at the other licences due to financial restraints due to the global financial crisis and a demanding project in WA, coupled with overly optimistic covenants for those licences being submitted. It is the conclusion of the work done thus far that licences EL 27398 and EL 27404 be surrendered and that EL 27399 be partially surrendered to free up company resources to focus on the areas of interest. It is intended for further work to be undertaken involving helicopter based reconnaissance and sampling later in 2011 on EL 27400 and EL 27399.