Annual report for EL 9725 and EL 10136 Hammer Hill Project 13 February 2008 to 12 February 2009

Abstract

This report presents the work completed during the seventh year of tenure on the Hammer Hill Project; a joint venture between Mithril Resources (manager), BHP Billiton and Arafura Resources. The project covers granted Exploration Licences EL 9725 and 10136, which have joint reporting status. The Hammer Hill Project area straddles the Huckitta and Illogwa Creek 250,000- scale map sheets and is centred about 180 km northeast of Alice Springs, south of the Plenty Highway. Work completed over the tenement area during the seventh year of tenure includes: A review of the final data from the VTEM survey; Heritage surveys; Ground EM (moving loop and fixed loop); Diamond drilling (3 drillholes); Petrography; Downhole EM; Geological mapping and rock sampling; and Planning of RAB/Aircore drilling. The diamond drilling intersected significant sulphide mineralisation including minor chalcopyrite. The style of mineralisation is thought to be that of a skarn type and conductive targets remain untested in the vicinity of the drilling. Aircore and / or RAB drilling is planned on a number of traverses to determine the source of other magnetic targets on the project.