EL 22856 Saddles Annual report for the period 5 February 2006 to 4 February 2007

Abstract

Work undertaken for the year ending 8 February 2007 within EL 22856 targeted Frances Creek style hydrothermal haematite mineralisation and comprised: fifteen RC holes for a total of 375m drilled at Elizabeth-Marion, Helene 1, Saddles 1 and Saddles 2 prospects; rock chip grab sampling of outcrop areas at Saddles 1, Saddles 2 and Saddles Extended; and analysis of 97 one-metre interval drill hole samples and 263 rock chip grab samples. Drilling at Elizabeth Marion confirmed haematite/goethite mineralisation is of low to modest (54-60% Fe) grade and extends further along strike to the south east from 2006 drilling. No significant (+60% Fe) grades and intervals were achieved from the six holes drilled under outcrops at Helene 1 and two holes drilled at Saddles Extended. Rock chip sampling results at Saddles 1, Saddles 2 and Saddles Extended returned modest average Fe grades (approx 58%) and high P grades (greater than 0.3%). These results, particularly the high P contents, downgrade the prospectivity of the occurrences for large tonnages of economic grade haematite in the near surface zone. Work proposed for the next reporting period will comprise RC drilling (700m-1,400m) of ironstone mineralisation at Saddles 1 and 2, and Elizabeth Marion.