Sammy Project EL 25643 and EL 25653 Annual technical report for the period 20 August 2009 to 19 August 2010

Abstract

Work completed over the tenement area during the reporting period included the following: Airborne Geophysical surveying (VTEM covering 24 sqkm at 200m line spacing); Ground EM (4 lines for 5 km); Geological mapping; Rock chip Sampling (7 samples); Heritage surveys and RC Percussion Drilling (5 holes for 536m). The VTEM survey identified a number of high priority anomalies for ground follow-up. Ground EM was conducted over a number of these anomalies followed by drill testing of three conductors. One conductor is interpreted to be sourced buy significant graphite identified in the drillhole, with no obvious source to the conductors in the other two holes. Two drillholes were also drilled under mineralisation at Edmund and Kevin Darling Prospects. Low level Ni/Cu anomalism was intersected in weakly mineralised gabbroic rocks. Further work in the next reporting year will concentrate on determining the source of the conductors in two of the drillholes and assessing the extent of gabbroic rocktypes +-mineralisation at the Percy Ni/Cu Prospect.