EL24520 Lake Woods Extended Annual Report 3rd October 2006 to 2nd October 2007

Abstract

The Lake Woods project is located 700 km south of Darwin and 200 km north of Tennant Creek. The project area is centred on the Ashburton Range which runs north-south along the eastern margin of Lake Woods, a large seasonal lake. The Stuart Highway passes through the centre of the area. Bedrock in the area is Middle Proterozoic Renner Group sediments, intruded by pre-Cambrian dolerite. Previous exploration within the district has focused on the potential for diamonds and base metals but has been limited due to poorly developed drainage and widespread alluvial and aeolian cover. The area was identified as conceptual target area based on proprietary methods and modelling conducted by Paradigm Geoscience Pty Ltd. Exploration conducted so far has involved the follow-up of earlier favourable results and consisted of: Collection of 12 mineralogical samples from stream sediment for diamond/indicator mineral analysis; Collection of 28 samples from stream sediment, aeolian sand and rock for multi-element geochemical analysis; Reconnaissance geological mapping; Additional data compilation and review of previous exploration; A review of the size, colour and morphology of the microdiamonds recovered over the broader area; Interpretation of results and formulation of future work program, including intensive geophysical studies; Native title negotiations; Completion of an airborne EM survey over the area Work completed to date indicates that the Lake Woods Project area has potential for diamonds, copper-nickel mineralisation and platinoids. The next step in the exploration of the Lake Woods Project will be processing of the AEM survey data to help identify discrete targets for follow up. Follow up would entail drilling the targets identified from the AEM survey. It is expected that follow up drilling could be undertaken next dry season depending upon the availability of drill rigs.