EL 22301 Mount Wells North Annual report Year 4, 14 April 2006 to 13 April 2007

Abstract

A joint venture between Australasia Gold (AAO) and titleholder Softwood Plantations Pty Ltd grants to AAO 100% rights to gold deposits discovered within the EL while Softwoods retains 100% rights to other commodities. AAO is operator-manager and conducts exploration for gold, and coordinates exploration for other commodities which the titleholder may wish to fund. The model for AAO's exploration for gold is based on the premise that extensive areas throughout EL 22301 concealed under blacksoil plains of the upper reaches of the McKinlay River and its tributaries are prospective for gold by virtue of the proximity of granite intrusions, and underlying stratigraphy and structure revealed in adjacent outcropping areas, but remain little explored. Softwood Holdings' targets include the Mt Wells tin deposits which are situated in the EL including potential for extension of resources, and others which may be revealed by exploration of both outcropping and sediment-covered parts of the EL. Australasia Gold has completed the following exploration during the current licence year: Detailed review of historic exploration reports relating to the EL area and environs (B Sando); A comprehensive geo-interpretation of the regional airborne geophysical data set covering the EL, and surrounding land, including the ultra-detailed magnetic survey flown during 2006, for the purpose of targeting 2007 exploration geochemical surveys to sample bedrock beneath blacksoil (Consultant H Rutter); An in-depth orientation geochemical survey testing the applicability of CRC-LEME's biogeochemical survey techniques (which have been demonstrably effective in the semiarid Tanami region), in the tropical and blacksoil environment (Dr S. Hill & associates, University of Adelaide); Geological reconnaissance of the EL area (T.J. Ireland & B Sando). The Aboriginal Areas Protection Authority confirmed that there were no registered sacred sites within the tenement boundary.