EL 9975, EL 9998 and EL 23624 Renner Springs Project annual exploration report for year ending 6 June 2008

Abstract

Exploration activity on EL 9975, EL 9998 and EL 23624 for the 12 months to 3 June 2008 included: heritage clearance survey; 875 line km helicopter borne SkyTEM geophysical survey (total survey 2,300 line km); Access and site preparation for a planned 2,000 metre RC drill program originally outlined in the Renner Springs 2007 Mine Management Plan; and Commencement of that RC drill program. EL 9975, EL 9998 and EL 23624 were covered as part of a project scale helicopter borne SkyTEM survey, conducted by Geoforce Pty Ltd, with approximately 38 percent or 875 line km of the combined 2,300 line km survey being flown over the 3 Licences. The survey was flown on 200m spaced east-west flight lines and in-filled to 100m spaced flight lines in areas of known mineralisation. The sensor height was located approximately 30m above ground level. The survey was modelled by Southern Geoscience and the resultant interpretation is being used to fine tune drill targets along the known manganese trends and to identify other potential manganese mineralisation. Several field days were required to peg the proposed drill sections prior to clearing. Approximately 40 kilometres of existing access tracks required repair to facilitate access by a heavy RC drill rig. The actual route of the access track was modified to avoid proximity to areas identified in the initial Heritage survey and restricted to areas south of Hunters Creek until access across Hunters Creek can be negotiated. Clearing involved floating a D9 dozer and grader to the Renner Springs Project area and approximately 3 days for the repair of existing access tracks and clearing of proposed drill sections. Drilling commenced on the 1st of June and 606 metres (9 holes) had been completed by the anniversary date of 2nd June 2008, out of 2,579 metre (30 holes) completed in the first phase of the initial drill program completed on 9th June 2008. All drill collars listed below are located on EL9998. The second phase of the initial RC drill program has been delayed pending resolution of access issues to drill targets north of Hunter Creek.