Exploration Licence EL23897 3rd Annual report year ending 9th February 2007 and 4th year MMP year ending 9th February 2008

Abstract

EL 23897 was granted to Resource Holdings (WA) Pty Ltd in 2004. Truscott Mining Corporation Ltd acquired 90% of the licence and assumed management in late 2005, and Resource Holdings retained 10%. Following evaluation of previous exploration results, Truscott planned and carried out a Reverse Circulation drilling programme in July 2006 to test for hematite hosted gold mineralisation on EL 23897. Results from this and the previous year's RC drilling were then incorporated into remodelling of detailed ground gravity data, to refine exploration targets for 2007 drill testing. In July 2005, eight RC holes (ERC001-008) were drilled on three lines over 200 metres strike length, for 952 metres. These holes targeted the upper part of Modelled Gravity Body 1 at the peak of the gravity high, and at its eastern end in a zone of structural complexity and possible dilation. One shallow hole, ERC004, was drilled to test the upper extension of Modelled Gravity Body 3 and provide further geological information on the ERC001-003 section. After acquiring 90% of EL 23897 and assuming management of the property, Truscott Mining carried out a review in early 2006 of all previous exploration data including aeromagnetics, detailed ground gravity and results of the 2005 RC drilling programme. A follow-up RC drilling programme was planned, to test the strike and depth extents of the brittle/ductile sheared and hematite altered quartz porphyry and to test for associated gold mineralisation. In July 2006, Truscott deepened two of the previous RC holes and drilled a further 6 RC holes over a total 550 strike length of Modelled Gravity Body 1 for a total of 1,795 metres. The programme was carried out by Gomex Drilling from 11th to 21st July using a Metzke rig and 5.5 inch face sampling hammer. On-board air was 350psi/900cfm, with a similar size auxiliary and a 900psi booster alongside. The rig was equipped with an effective dust suppression system, and a hydraulically-operated cyclone and splitter system for sample collection. During the drilling programme, a total of 1,795m was drilled in 8 holes (two of which involved re-entry and deepening of Phase 1 holes). Samples were collected via the on-board cyclone and riffle splitter for each metre, and bagged as both analytical (calico bags) and bulk (plastic bags) samples for each interval. A total of 365 samples were dispatched to ALS-Chemex Alice Springs for gold (Au-AA25) and 14 element (MEICP41) analyses. Of these, 309 were single metre samples and 56 were composited into 14 x 4m composites. Exploration by Resource Holdings and Truscott Mining has confirmed the presence of favourable geological and structural settings prospective for Tennant Creek style low-magnetic quartz hematite hosted gold mineralisation within EL 23897. Recent incorporation of geological and structural data from the RC drilling programmes carried out have improved the gravity modelling and defined further targets which will now be tested by additional RC drilling during 2007. A Mine Management Plan for the year 4 exploration program is also included.