Partial surrender report on EL 26756 for the period 15 December 2008 to 14 December 2010

Abstract

This report describes exploration activities for gold and copper undertaken by Prosperity Resources (Tennant Creek) Pty Ltd over 5 surrendered blocks of EL 26756 as part of the Tennant Creek Project between the 15 December 2008 and 14 December 2010. The project area is located approximately 10km north-west of Tennant Creek in the Northern Territory. During the reporting period, a geological review and re-assessment of the Tennant Creek Mineral Field was completed over the surrendered blocks. This comprehensive review was required to re-assess the potential for new goldcopper mineralising systems within the Tennant Creek area. It was concluded that Tennant Creek is fundamentally a gold and not an IOCG mineral system because the copper has an apparent sedimentary and not magmatic origin. This means that copper occurs peripherally and not centrally to the system. The most favourable target sites will be larger and more complex structural zones, where a variety of anomaly-types form in a comparatively closely spaced cluster. These sites are likely to be more fundamental structural sites where there have been higher rates of fluidflow, representing a more core part of the system. In this context, the presence of both weathered and possibly haematitic ironstones are positive criteria. Prosperity's tenure in the Tennant Creek region remains significantly under explored and the paucity of drilling over the vast majority of the Company's leases heightens existing potential. MMI soil sampling is proposed as the most effective method in deeply weathered terranes. The southwest and far eastern portions of EL 26756 are deemed not to hold any prospectivity for gold or copper and 5 blocks were subsequently relinquished.