Combined annual report EL 24401, EL 24402, EL 24664, EL 24700, EL 24778 exploration licence year ending 2 June 2007 Borroloola project

Abstract

This report details exploration conducted by Finching Pty Ltd (Finching) and Sandfire Resources NL (Sandfire) on exploration licences 24401, 24402, 24664, 24700 and 24778. These licenses are located north-west of Borroloola in the McArthur Basin. Sandfire considers the project area prospective for base metals, manganese and diamonds. Exploration work during the reporting period has consisted of field investigation of previously identified electromagnetic (EM) anomalies, limited rock-chip sampling and analysis, reprocessing of open-file airborne electromagnetic (AEM) data, and a regional review of open file information. Results from analysis of the rock-chip samples were not sufficiently anomalous to warrant further work. Based on the results of the AEM data reprocessing, target areas will be defined and plans have been made to fly new AEM surveys during 2007 over some 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.