Annual report for EL 25416, 2007-2008

Abstract

The Daly River tenement is located proximal to the highly prospective Daly River Mineral Field (DRMF) which is located about 20km to the north east of EL 25416, and is underlain by green schist facies, submarine, mafic to folic volcanics and interbedded sediments of the Finniss River Group, within the Pine Creek Orogen (PCO). The north-trending field is about 160km2 in area and contains numerous base metal occurrences. Fifteen of these can be classified as hydrothermal vein-type and three as volcanic-hosted massive sulphide (VHMS)-type. Detailed interpretations of airborne radiometric data from the Northern Territory Geological Survey highlighted a number of radiometric anomalies. During May 2007 a proposal was made by 'Outback Metals Limited' to acquire 'Corporate Developments Pty Ltd'. EL 25416 is part of a package of tenements being discussed within this transaction. Since the above mentioned transaction was proposed, much of the associated work in this tenement has been associated with the business side of the transaction including acquiring an Independent Geologist Report which was carried out by Al Maynard and Associates Consulting Geologists. A review of the tenements held by Corporate Developments Pty Ltd was also carried out by Hetherington Exploration and Mining Title services. Site visits were made to the Daly River project area by 3 executives of the 'Company' to review the investments. Research studies have shown a number of clusters of second and third order radiometric anomalies that have not, to date, been systematically explored. The radiometric anomalies are associated with the favourable lithologies which have hosted uranium and base metal deposits in the Pine Creek region. An 8 week desktop study has been completed and was able to outline some significant targets to follow up in the 2008-2009 exploration season. Due to the company's work force being tied up in other priorities we were unable to proceed with any further groundwork exploration.