Annual report on exploration activities on EL 24815 Pine Creek Project for period 18 April 2010 to 17 April 2011

Abstract

Exploration activities during the reporting period consisted of a low level detailed aeromagnetic (radiometric) survey in the southern portion of the project area, field exploration across the northern portion of the Stray Creek West target, which consisted of XRF readings and soil samples on seven east - west traverses and a gradient array IP survey, and the design of a drill program to test the Stray Creek radiometric target. Data collected consisted of 124 coincident XRF points / soil samples and three rock chip samples. The XRF readings and soil samples confirmed the tenor of the low order Zn and Pb anomalism at Stray Creek West and extended the zone some 400m to the north. The anomalism appears to have a broad east - west trend and is coincident with an apparent demagnetised zone. No coherent uranium or precious metals anomalism was defined. The gradient array survey failed to identify any significant resistive or chargeable zones. The XRF/soil sampling and gradient array IP survey have downgraded the prospectivity of the Stray Creek West base metal anomaly, whilst the Stray Creek radiometric anomaly remains of interest due to its geological and geomorphological setting. Follow up exploration will focus on the Stray Creek radiometric anomaly with a program of grid based vertical aircore drilling planned.