Annual report for EL 23726 801 Project, for the period ending 31-07-2007

Abstract

EL 23726, granted to Conarco Minerals Pty Ltd, currently comprises an area of 149 blocks and is located on Dalmore Downs pastoral lease, 260km east of Tennant Creek in the Northern Territory of Australia. In late 2002, Conarco discovered strongly anomalous geochemical lead (750ppm Pb) and arsenic (150ppm As) in weathered Cambrian sediments at a location named '801' while carrying out a regional reconnaissance geochemical survey. Literature search by Conarco also discovered drill holes previously drilled in the area containing anomalous lead values up to 370ppm Pb. Follow-up work by Conarco defined a broad area within EL 23726 containing anomalous lead geochemistry with coincident magnetic response defined from interpretation of the NTGS Barkly airborne geophysical survey. Additional magnetic modelling also revealed several magnetic targets for kimberlite bodies. The targets range in depths from100m to 200m. In March, 2007, Conarco signed a Memorandum of Agreement to enter into a Joint venture with Hancock Prospecting Pty Ltd in Perth (HPPL), WA to carry out exploration on all Conarco tenements including EL23726. An MMP for a drilling program, submitted by HPPL subsidiary Minerals Australia Pty Ltd, was approved by DPIFM in June 2007 and Authorisation No. 0367-01 was issued on 28 June 2007. Work completed by the JV during 2006-2007 involved a review of the geophysical modelling and planning for the drilling program to test a number of the magnetic anomalies. A field visit was made to the area by geological consultants for the JV, Bill Fraser and Peter Collings.