EL 26534 Helen Springs Project, Annual report for the period ending 1 August 2011

Abstract

During this reporting period, the authors made a site visit to check target areas and prepare logistics for drilling, the geophysical data were modelled and analysed in more detail to better position drill collars and target depths, and CSA Global were contracted to prepare the access tracks and drill pads for the drill program and carry out the drilling program. Report authors Dr Jayson Meyers and Nigel Cantwell visited site during 11th to 15th October, 2010 to review drill program logistics, assess environmental conditions and meet with the land managers. In addition, a visit was made to the Bootu Creek Manganese mine to gain a better understanding of the local geology and style of Mn mineralisation. The current drill targets are a mixture of magnetic and EM anomalies. The HEM and magnetic data were modelled for selected targets to refine drill collar positions. Following approval of an MMP for exploration operations during the reporting period, CSA Global were contracted to organise and carry out a RC drill program to test the geophysical targets. CSA Global Senior Geologist Nikita Sergeev made a site visit and prepared the access tracks and drill pads. CSA Global NT Manager Patrick Maher sought quotes from various drilling companies. The drilling program was not completed during this reporting due to the initial drilling contract with Interdrill being cancelled due to non-performance on their previous job in the NT and then a shortage of RC drill rigs to get the program finished in a tight time frame. Interdrill have kep Sinosteel's mobilisation payment. A contract has been signed with McKay Drilling, and they are expected to start in the last week of August 2011. Information obtained through drilling will be input into the current bedrock interpretation. Target areas will be prioritised and if required further diamond drilling will be undertaken to explain sources of geophysical anomalies.