EL 23517 Watts Creek annual exploration report for period ending 3 April 2008

Abstract

During 2007-2008, a program of soil sampling was undertaken which involved collection of 778 samples. These were analysed for gold and base metals. Gold anomalous concentrations (-1 to 140 ppb) generally coincide with folded Koolpin Formation and Zamu Dolerite (Anticlines). Base metals concentrations are generally low, except some higher than normal values, which appears to be related to sporadic distribution of chalcopyrite, galena and sphalerite. Cu varies from 0 to 214 ppm with an average of 24 ppm. Pb ranges from 0 to 1110 ppm with an average of 37 ppm. Geochemical sampling program carried out during reporting period 2007-08 has highlighted some areas with anomalous gold values. During 2008-09, a thorough evaluation of the project will be carried out in conjunction with geophysical and structural interpretation. Some of the high priority targets may be drill tested.