Annual report EL 27472 and EL 27473 Larrimah East project, for the period 18 February 2010 to 17 February 2011

Abstract

The Larrimah East Project comprises two exploration leases, EL 27472 and EL 27473 (total 692km2) in the Dunmarra Basin region, approximately 80km southeast of the town of Mataranka. Western Desert Resources Limited (WDR) was granted the licences on 18 February 2010 through its wholly owned subsidiary, WDR Base Metals Ltd. WDR is primarily targeting McArthur River-style base metal deposits in sedimentary rocks of Proterozoic or Cambrian age. The Velkerri Formation of the Roper Group is believed to be a suitable target because of its regional-scale elevated base metal values. The Velkerri Formation is known to occur at shallow depths in the area based on previous exploration drilling, and a complex pattern observed in the magnetic imagery is thought to represent a regional structural target. During the first year of tenure, WDR completed a search of previous exploration activities and an airborne XTEM survey with the assistance of the Government co-funding scheme. The EM survey was flown using a helicopter and collected 1,763.8 line km of data at a ground clearance of 30-40m and a line spacing of 400m. The rationale of the survey was to refine understanding of the basement structure and stratigraphy, recent weathering events including possible palaeochannels, and direct targeting of sulphide mineralisation.