Bootu Creek Manganese Project annual exploration report for EL 10412 (6th year) 21 September 2006 to 20 September 2007 and EL 22428 (5th year) 4 September 2006 to 3 September 2007

Abstract

Work conducted on the two licences included further interpretation of Heli-EM data, Aster multi-spectral study, acquisition of updated Ikonos satellite imagery, a heritage clearance survey for planned drilling on EL 10412, clearing of access tracks and drill sites on EL 10412 and drilling of 9 RC percussion holes for 648m. The RC drill program was still in progress at the anniversary date and continued into October 2007. Project review of the Bootu Creek Manganese Project tenure by Southern Geoscience Consultants recommended helicopter based Hoist EM as being the most effective geophysical method for reconnaissance manganese exploration over large project areas. GPX Airborne Pty Ltd were contracted to conduct a Hoist-EM survey over ML 24031 and parts of EL 10412 and EL 22428. The survey was completed on 12th September 2006 and totalled 1,525 line km. Southern Geoscience and OMM geological staff continued to refine the interpretation and utilise the outcome for reconnaissance exploration drill targeting. Aster data/scenes have been purchased over the entire Bootu Creek tenure, from Renner Springs in the north to Attack Creek in the south were rectified by GeoImage Pty Ltd prior to interpretation by a consulting geologist Amit Eliyahu. IKONOS is a commercial earth observation satellite that collects high-resolution imagery. It offers multispectral (MS) 4 bands imagery at 4m resolution and panchromatic (PAN) imagery at 1m resolution. The product used by OMM over the Bootu Creek area is a three multispectral scenes mosaic pan-sharpened to 1m resolution. An updated scene was purchased in July 2007 (see Annual Report for ML 24031) and is the process of being enhanced for improved resolution. The RC drill hole program was designed to test several heli-EM anomalies for both manganese and copper mineralisation. Results returned have generally disappointed with only minor low grade manganese and copper intersections encountered to date. An Access database detailing all drill data including logs and assays has been included in the 2007 Annual Exploration Report for adjacent Mineral Lease 24031.