Annual report for the period 9 December 2009 to 8 December 2010 and final report for the period 9 December 2002 to 8 December 2010

Abstract

EL10321 consists of 2 graticular blocks over an area of approximately 6.7 square km. It is located within the Batchelor 1:100,000 Map sheet area, approximately 18 km due east of Adelaide River township. The tenement is underlain throughout by the Lower Proterozoic Burrell Creek Formation, which consists of a grey-wacke to mud-stone suite representing a series of cyclic turbidity events throughout the Finnis River Group depositional history. The Early Proterozoic Burnside and Margaret granites, which form part of the Cullen Batholith, are located approximately 30 km SSE of the tenement. EL10321 was granted on 9 December 2002 to Agricola Gold Limited and they commenced exploration in 2003. From December 2002 to December 2007, exploration by Agricola included field surveys and surface sampling. Salisbury Exploration Pty Ltd, a wholly owned subsidiary of Salisbury Resources Limited, entered into an Option and Farm-in Joint Venture Agreement with Agricola Gold Ltd on 14 December 2007 and under the JV terms, they became the Operator. Exploration activities carried out by Salisbury during 2008 comprised soil and rock chip sampling over three prospect areas, namely Cook, Fisher and Reid, together with GPS location of old drill holes, topographic features and geology. During 2009 activities comprised additional soil and rock chip sampling over the same three prospect areas. The additional soil sampling provided infill data to the sampling program undertaken in October 2008. Further geological mapping and mapping of topographic features using Garmin GPS instrumentation was undertaken. A Mining Management Plan was prepared and lodged with the Department in May 2009. However, the proposed drilling program was not undertaken. No field work was carried out in 2010 and the tenement was not renewed prior to its expiry on 8 December 2010.