EL 23578 South Mount Fitch annual report for the year ended 29 December 2007

Abstract

This tenement was applied for in early 2002 following the intersecting of major base metal mineralisation in drill holes near the Mt Fitch prospect which is located about 600 metres to the northeast. The primary purpose was, and still is, to cover potential very deep down dip extensions to that mineralisation. The area is considered prospective at depth for uranium, copper, lead, zinc, cobalt and nickel mineralisation, especially as the mineralisation intersected in the adjoining tenement (ERL125) appears to dip south-westward toward this tenement. During the first year of tenure acquisition of exploration data was undertaken, previous drill data was compiled and the prospectivity reviewed. In the second year this and surrounding data was entered into a GIS database. Compilation of regional data continued in 2006. Compilation of available regional exploration data into GIS format continued for this and adjoining tenements. Further drill evaluation of the Mt Fitch South base metal prospect indicates it has potential to extend into this tenement at depth, however several of the recent drill holes failed to penetrate to target depth due to poor ground conditions requiring redrilling in the new year. This is a very narrow tenement, and expenditure is apportioned to the tenement from regional exploration costs and overheads, excluding drilling and geochemical costs. The tenement was covered by new digital aerial photography.