Annual report for EL 23454 'Suplejack', to 11 November 2006

Abstract

Suplejack Pty Ltd acquired EL 23454 from the previous holders of the tenement in October 2004. This report covers work done in the period 12 November 2005 to 11 November 2006. The tenement is located in the Tanami Desert, approximately 650 km northwest of Alice Springs. Access is by the Tanami Road and the Tanami-Lajumanu road to Suplejack Downs station. Access to the tenement is affected by the monsoonal climate with road access restricted during and after the wet season. The tenement is wholly contained within Suplejack Downs station. Previous explorers on the tenement area have been MJ Kidd and various partnerships and JV's between Kidd and P Messenger, Dominion Gold, Acacia Resources and AngloGold. In excess of $5 million had been spent by previous explorers, which resulted in identification of a small resource at Tregony, delineation of a major zone of gold occurrences and identification of a series of untested targets with potential for structurally controlled gold deposits similar to the Groundrush deposit. A substantial regional database also exists for the tenements, which has been used to assist in reinterpretation of potential on the tenement. Geology is partly equivalent in age with host sequences for the gold deposits at Tanami. Major D5 age structures are thought to control the majority of gold deposits in the Tanami region and major structures of the same age control gold mineralisation within and adjacent to the tenement. Current work carried out by Suplejack has been ongoing review of previous data, identification of major mineralised structures not targeted by previous exploration, sampling of a number of soil grids, drilling of 3740 metres of RC holes on both known targets and new prospects and aerial photography over the entire group of tenements. Results of the work carried out have been identification of major gold anomalies at PHD and Five Mile and recognition that the gold anomalous zone at PHD is a broad zone of shearing containing chlorite and arsenopyrite. A revised interpretation of structural control on mineralisation in the Suplejack region has been proposed that will be tested in the 2006 field season. Several soil grids require further extensions to develop the prospects to drill ready status. A substantial amount of data interpretation of soils and drilling results will be carried out as results become available prior to next field season. Soil sampling was carried out on Five Mile, Boco, Tregony, and Pink Ridge prospects within El23454 to assess whether the structures contained gold. At the Five Mile prospect, close spaced soil sampling was used to help develop a drill target. Results showed multi element anomalies in the vicinity of the Five Mile Bore, to the south of the PHD prospect and also anomalous responses at Boco, Tregony, Tregony North, and Pink Ridge prospects, along North West trending fault structures. Results at Five Mile Bore were followed up with infill soil sample lines. Sampling with composite soil and rock chips was undertaken to the East of Boco where a North West trending fault in Supplejack Sandstone is exposed. The Tregony North prospect lies along the strike of the Supplejack Shear Zone to the north of the Thomas prospect. Review of geochemical data shows that a north-west trend for the majority of the geochemical anomalies, parallel to a pair of mapped faults, is permitted by the data and appears to be more probable than the north-south correlation previously used for drill hole targeting by previous explorers. Additional soil sampling has been undertaken to bring the data set up to the density required for reliable correlation of data. Closer spaced soil grid sampling has been completed over approximately 1300 metres in a NS direction to assist in re interpretation. A total of 439 samples were retaken this year on previous sample grid lines, the previous sample results were deemed unreliable due to laboratory induced contamination. Resampling was conducted to assess the area. Soil grids were orientated to cross cut a South East trending splay fault 'F14' going from Tregony prospect into EL23492. A Gold anomaly was outlined which was thought to be assoiciated with the F14 fault structure. Reconnaissance soil grids were positioned between Tregony North prospect and Malys knob following the F14 fault structure to the North West. These soil samples were retaken along previous grid lines to obtain reliable results. Anomalies were found along the entire extent of the F14 structure tested, with high order anomalies present between Tregony North and Maly's Knobs. The Boco prospect area lies along the strike of the Supplejack Shear Zone to the north of Maly's Knobs. It has very favourable geology and structure and was interpreted as a high priority target by the previous tenement holders. Drilling results included several significant intersections. A review of previous data on the area suggests that correlation of geochemical results in a north south direction may be incorrect and that a north-westerly direction for correlation is more probable. Detailed soil sampling over approximately 900 metres north south has been completed for a total of 438 samples however due to laboratory induced contamination no reliable results were obtained. Resampling is required to assess this area. The PHD area contains a very extensive quartz vein system mapped by the BMR over approximately 9 km. The vein system lies along a major splay fault off the Suplejack Shear Zone. Approximately half of the mapped vein system occurs within the current tenement area. Host rocks to the vein are all quartz sandstones belonging to the Supplejack Sandstone which stands up as a low ridge where held up by the relatively resistant quartz veins. Kidd and Messenger took drainage samples adjacent to the reef system and obtained anomalous responses that were not followed up. An anomalous rock sample from an outcrop of the vein system was also not followed up. Initial soil sampling to follow up a Suplejack Pty Ltd high order drainage gold anomaly was extended south with 244 samples and resulted in one anomaly about 800 metres long and up to 150 metres wide as well as several smaller anomalies. Success in locating substantial gold anomalies associated with the Old 8 Mile Fault at PHD resulted in reconnaissance sampling to both the north and south of PHD. To the south for approximately 3 kilometres reconnaissance spaced soil lines were sampled with a total of 130 samples and resulted in a large gold anomaly, approximately 2000 metres long, being recognised. The anomaly has a maximum width of about 350 metres. An extensive infill soil program is underway at present. At Pink Ridge, ten sample reconnaissance soil lines across three parallel quartz reef areas were sampled with 685 soil samples at 25 metre spacing. Low order anomalies were present. Over $1.3M was spent during the reporting period.