Annual combined report for EL 10121, EL 24349, EL 24373, EL 24374, EL 24714, EL 24946, EL 24996, EL 24997 and EL 25070, year ending 10 April 2007

Abstract

This report details exploration conducted by Sandfire Resources NL (Sandfire) on the Borroloola Project exploration licences. These licenses (10121, 24349, 24373, 24374, 24714, 24946, 24996, 24997, and 25070) are located west of Borroloola in the McArthur Basin. As this is the first combined report for this project, the beginning of the reporting period is different for individual titles, but ends on 10 April 2007 for them all. Sandfire considers the project area prospective for base metals and diamonds. Exploration work during the reporting period has consisted of processing and interpretation of previous Induced Polarization (IP) surveys, a limited RC/Diamond drilling program at Gordon's copper prospect, geochemical analysis of diamond core and RC samples, preparation and analysis of diamond core thin sections, reprocessing of open-file airborne electromagnetic ('AEM') data, reconnaissance mapping and rock-chip sampling, and a regional review of open file information. At Gordon's copper prospect, four RC/DD holes were drilled to test IP targets. A total of 2284m were drilled. Zones of low grade disseminated chalcopyrite mineralisation were intersected in each hole. Based on the results of the AEM data reprocessing, target areas have been defined and plans have been made to fly new AEM surveys during 2007 over five areas. Review of regional open-file data is currently still in progress. The results of this data review will be reported in the next annual report.