Annual report EL 25307 for the year ending 28 December 2009

Abstract

Work during the reporting period has included the drilling of two vertical diamond core drill holes (LBD 1 drilled in June 2009 to a depth of 751m and LBD 2 drilled in December 2009 to a depth of 751.6m), a soil sampling program of 45 samples around the collar area of LBD 1 undertaken in December 2009 and a fixed loop ground EM survey completed over the collar areas of LBD 1 and LBD 2 in December 2009. In addition, petrographic and whole rock geochemical studies were undertaken on drill core from hole LBD 1 by consultant geologist, Dr Martin Gole. Drill hole LBD 1 to test a conceptual Ni-Cu-PGE target was partially funded by the NTGS Bringing Forward Discovery initiative. At the time of reporting assay results have been received from drill hole LBD 1 and from the soil sampling program. Ground EM survey results have been interpreted. Drill hole LBD 2 has been only partially cut at this stage with initial assay results pending. Assays from drill hole LBD 1 identified two zones of particular interest. Zone 1 32 to 56m 24m at 4.92g/t Ag and Zone 2 380 to 391m 5m at 0.13g/t Au from 380m and 6m at 0.03% Co and 0.05% Cu from 385m. A soil sampling program around the collar location of drill hole LBD 1 failed to show elevated Ag which had been intersected in hole LBD 1 from surface to 56m.