EL 28567 Running Creek Annual technical report for period 24 October 2011 to 23 October 2012

Abstract

Exploration activities during the period have involved: Historical data review comprising assessment of all available open file reports and data; Negotiation of an Option Agreement with Auminco Coal Pty Ltd for a farm-in on all commodities apart from uranium; Liaison with stakeholders, specifically the pastoralist who operates Wollogorang Station; and Collection of 210 soil and lag samples (including 9 duplicates), and 5 rockchip samples. Soil and lag samples were processed by ALS Laboratories in the following manner: -5mm samples were partly digested using a typical laboratory 'exploration style' leach and analysed for a large multielement suite including Au and Pb isotopes; -80# samples were fully digested in 4 acid solution and analysed for a large multi-element suite, including gold and PGEs; and -5mm+2mm (lag) samples, which CRAE showed to be the most suitable for base metals at Running Creek, were digested as per the -80# samples. Results of the various methods were compared to determine which has the most sensitivity and best matched the lag grid generated by CRAE. The -5mm partial digest, while generating relative values only, showed greatest sensitivity over a number of elements. The full digest method suffered from a number of important trace metals reporting close to the detection limits, including uranium, and is therefore less useful for uranium exploration in the area. Uranium in partial digest, by comparison, showed three orders of magnitude variation and excellent repeatability of duplicates at different concentrations. Notably, uranium was not a significant presence at some breccia pipes, but was at others. Interesting coincident Cu-U-Au-As and Pb isotope anomalies were also identified near Felix, suggesting that area might be suitable for follow up work. Stout has elevated Ag to match it?s known Cu-Mn anomalism. The 5 rock chip samples were analysed at ALS Laboratories for a large multielement suite including Au and PGEs. The highest uranium value is 39 ppm, and Cu-Mo-Au-PGE are also anomalous at several localities. Phosphate also appear to be higher than expected in all the samples. These features suggest a genetic connection with the U-P-REE Selby prospects.