EL 26756 Annual report for the period 15 December 2009 to 14 December 2010

Abstract

During the reporting period, the following activities were completed over the tenements: Geological review and re-assessment of the Tennant Creek Mineral Field. This comprehensive review was required to re-assess the potential for new gold copper mineralising systems within the Tennant Creek area. It was concluded that Tennant Creek is fundamentally a gold and not an IOCG mineral system because the copper has an apparent sedimentary and not magmatic origin. This means that copper occurs peripherally and not centrally to the system. The most favourable target sites will be larger and more complex structural zones, where a variety of anomaly-types form in a comparatively closely spaced cluster. These sites are likely to be more fundamental structural sites where there have been higher rates of fluid flow, representing a more core part of the system. In this context, the presence of both weathered and possibly haematitic ironstones are positive criteria. Prosperity's tenure in the Tennant Creek region remains significantly under explored and the paucity of drilling over the vast majority of the Company's leases heightens existing potential. MMI soil sampling is proposed as the most effective method in deeply weathered terraines.