Annual Report on EL 27646 Mordor Project, for the period 12 April 2010 to 11 April 2011

Abstract

EL 27646 is one of a number of tenements in the Arunta Block being explored by Independence Group NL. Work done on the tenement to date has included: data acquisition, compilation and interpretation (open file, magnetics, gravity, other geological data). One main target area, an area of mapped mafic rocks including meta-gabbro in the north of the tenement, was the initial area of interest in the tenement. This has yet to be confirmed by field checking. The unit has reasonable outcrop, and magnetic data suggests that the interpretation may need some revision. Additional field checking of the main area of interest within EL 27646 was planned for January 2011, but was delayed due to mustering. Large rainfall events in February and March and other project commitments in April hindered this field checking. Further work is planned. While the mapped gabbros within the tenement represent a priority target, field confirmation of the mapping is required before additional phases of exploration commence. The targets of interest do not appear to have been tested by previous exploration. Access is yet to be established to our main target area. It has been recommended that helicopter access be used to verify the targets prior to any helicopter EM surveys or systematic local geochemical surveys (the likely next exploration phases). The potential for gold mineralisation may also need to be assessed given the recent results announced about 15km to the east by another exploration company.