EL 22856 Saddles Annual report for the period 5 February 2005 to 4 February 2006

Abstract

Work undertaken for the year ending 8 February 2006 within EL 22856 included fifty RAB holes for a total of 959m drilled at Saddle East, Elizabeth-Marion and Double D prospects; 285 one-metre interval drill hole samples were assayed. 360 line kilometres of Aeromagnetic and Radiometric surveys were undertaken. Resource modelling of Saddle East mineralisation and regional prospecting and structural mapping was undertaken. 7 rock chip samples were assayed. A JORC Code compliant Inferred Resource of 101,000 tonnes at an average grade of 58.7% Fe and 0.08% P was estimated for haematite mineralisation at the Saddle East Prospect. Drilling at Elizabeth Marion intersected high grade Frances Creek style hydrothermal haematite mineralisation. The best intercept assayed 63.27% Fe and 0.04% P over an 11m interval. Previously only moderate grade hydrated iron mineralisation had been intersected in this area. Drilling at Double D prospect failed to intersect the target due to poor ground conditions. Expenditure for the year was $91,948.92. Work proposed for the next reporting period includes RAB and RC drilling, geological mapping and resource modelling of iron occurrences.