Combined annual report EL 24541, EL 24989, EL 25427 and SEL 27039 Rover Project 8 March 2009 to 7 March 2010

Abstract

This report covers exploration completed on the Rover Combined Reporting tenement group for the period 8 March 2009 to 7 March 2010. The Rover Project is located approximately 100 km west-southwest of the Tennant Creek township, and includes a number of granted tenements and applications that fall within aboriginal freehold lands of the Karlantijpa South Land Trust and Karlantijpa North Land Trust. The project area is considered prospective for copper and gold and base metals mineralisation associated with Iron Oxide Copper Gold (IOCG) mineralising systems. In November 2008, combined reporting status was granted by the Northern Territory Department of Regional Development, Primary Industries, Fisheries and Resources over five granted tenements forming a contiguous group within the Rover Project. These are EL 24541, EL 24989, EL 25427 and EL 25511, and SEL 27039. SEL 27039 hosts two advanced IOCG mineralised systems including the Explorer 108 Pb-Zn-Ag resource, and EL 24989 and EL 24541 hosts copper-gold mineralisation at Rover 1. These occurrences demonstrate the high prospectivity of the Rover Project region. Exploration activities completed during the reporting period included diamond drilling at Rover 1, Rover 3, Rover 5, and Explorer 108, gravity data acquisition at Rover 1, Rover 5 and Rover 143, down-hole magnetic and electromagnetic surveys, and the calculation of a maiden resource for the multi-element Rover_1 deposit. The calculated maiden resource for the Rover 1 deposit is: 5.3 Mt at 6.1g/t AuEq for 1,037,600 AuEq ounces. Deep drilling at the Explorer 108 deposit has demonstrated that the ore system continues at depth, and has zones of increasing gold content as these levels. Drilling at the Rover 3 and Rover 5 anomalies failed to locate the magnetic targets, and more detailed assessment of geophysics, with consideration given to additional surveys, will be carried out prior to more drilling. The proposed 2010 programme is planned to include: Detailed diamond drilling for extensions and to increase confidence in mineralisation at Rover 1. (EL 24541 and EL 24989), trial down hole geophysics at Rover 1, reconnaissance diamond drill testing of topmost ranked magnetic and gravity targets in EL 24541 and EL 25511, diamond drilling at Explorer 142 on SEL 27039 to confirm and extend mineralisation, diamond drilling at rover 1 to test for down dip gold zones.