Second Annual Report for EL 22440 period ending 26 February 2006

Abstract

The work carried out during year 2 has focussed on the magnetic anomalies identified during the year 1 review and interpretation of the regional Mary River magnetic survey. An ultra-detailed airborne magnetic and radiometric survey at 40m line spacing and 30m terrain clearance was flown over the most prospective portion of the tenement based on previous competitor sampling results. A total of 526 line km was completed covering an area of 17 sq km. The results of the survey have clearly shown several high amplitude magnetic anomalies occurring within the Koolpin Formation or at the Zamu/Koolpin contact within the fold nose and flanks of the steeply dipping or overturned Spider and McCarthys anticlines. These magnetic features may represent massive sulphide (pyrrhotite) lenses prospective for precious and base metals. Linear north to north west trending magnetically suppressed zones transecting the Wildman Siltstone near the granite contact may be analogues to the shear zone that hosts the McCarthys Pb mineralisation. Additional sampling work is recommended for the most prospective zones and a thorough GIS data compilation, interpretation and magnetic modelling program should be undertaken. Ground follow-up using various geophysical techniques may be required to define drill targets.