Mount Shoobridge Project EL 22186 Annual report for the period 9 October 2007 to 8 October 2008

Abstract

Exploration conducted on EL 22186 during the reporting period included GIS data compilation, literature reviews, geological mapping, rock chip sampling, and soil sampling. Geophysical surveys completed included ground magnetics, high resolution mirco-gravity, NanoTEM, gradient array IP and dipole-dipole IP. Small RC drilling programs were completed at the Jackson's and Full Hand prospects, while diamond drilling was completed at Liberator. During the reporting period exploration primarily focussed on uranium exploration at the Liberator and Liberator South prospects (geophysical surveys, RC drilling and diamond drilling). Additional RC drilling (2008 field season) was carried out at both the Full Hand and Jackson's Prospects, which were identified through literature reviews. Rock chip sampling of regional uranium radiometric anomalies located in the north of EL 22186 was undertaken. A soil sampling program was completed over the Whatley's Lead workings (located on the boundary of EL 22186 and EL 23105). Uranium radiometric anomalies RA1 to RA8 were rock chip sampled (28 samples) in December 2007. Access to the mountainous areas was gained by helicopter and then by foot. The north-south trending stratigraphy consists primarily of interbedded sandstone and schist, occasionally displaying boxworks. Results were largely disappointing, with maximum result of 21 ppm U (from sample 109500) immediately northwest of RA3. A small soil sampling program was completed over the prospect. Approximately 200 soil samples were collected on a 100m x 50m grid which returned anomalous Au, Cu and Pb results. A coincident, north-south trending Pb (greater than 264ppm, max 2079ppm) and Cu (greater than 165ppm, max 1233ppm) soil geochemical anomaly was outlined. The Pb anomalism extended for a distance of approximately 300m, incorporating the numerous shallow pits excavated by old timers. Elevated Cu levels were limited to a much smaller area (roughly 100m in length) south of the old workings. A second smaller Cu anomaly is located on the eastern margin of the soils grid, and an additional low order Pb soil anomaly is located 200m further south. A single soil sample on the western edge of the grid returned 1870 ppb Au. Additional sampling is recommended in order to rule out field/laboratory contamination. In the north of the grid, three consecutive samples displayed elevated levels of Au (between 11 and 104ppb Au). It is recommended that all anomalies be followed up with additional rock chip sampling and detailed mapping. Seven rock chip samples were taken from an old costean which exposed a set of quartz veins containing visible galena. The unnamed prospect is located approximately 280m south-east of the Shoobridge/Old Company Mine. Results showed that the quartz veins were high in lead (up to 16.5%), with slightly elevated levels of Zn and Au. Further work should include a soil sampling program to test the strike length of the mineralisation (the veins do not outcrop). A literature review of the Full Hand Prospect (also referred to as Dead Finish) was completed during the reporting period. The Full Hand Mine was worked intermittently from 1903 to 1909 and several shafts were sunk, the deepest was 40m deep. Recorded production is 14 tonnes of copper ore. Two lodes are recorded. The first, trending NNE and ranging from 0.2m to 1m wide, is reported to have contained patches of very rich copper ore in the oxidized zone. The second lode trends ENE (roughly 055/70SE) and consists of a graphitic shear zone up to 3m wide which may be traced on the surface for 330m. The shear contains disseminated copper and lead minerals and contorted quartz clasts. Mineralisation in the graphitic shear zone is probably related to the intrusion of the Shoobridge Granite. United Uranium drilled a single diamond drill hole (DDH1) which was sited to test for mineralisation in the sulphide zone beneath the graphitic shear. At 238'/72.5m drill length (191'/58m vertical depth), a 4'/1.2m (3.5'/1.1m true width) graphitic shear was intersected averaging 6.25% Pb, 0.23% Cu, 0.1%Zn and 0.6 oz/t Ag. The Full Hand prospect was mapped and rock chip sampled (44 samples). Results were encouraging, with maximum values of 9.8% Pb (sample 110223), 7.8% Cu (sample 110094), 0.31g/t Au (sample 110117) and 49g/t Ag (110116). The table below displays rock chip results. Two rock chip samples from narrow (less than 1m wide) pegmatite units to the NE of the workings yielded encouraging Sn and Ta values, however are considered too small to be of any economic value. The prospect was mapped in detail, and six RC drill holes were planned to test the two lodes. Four holes (FHRC001 to FHRC004) were designed to test for lead and copper mineralisation in the steeply SE dipping graphitic shear zone, while the remaining two holes (FHRC005 and FHRC006) to test for sulphide mineralisation under a small pit where copper oxides were mined from 1903 to 1909. In early October, six RC holes for a total of 544m were drilled by Johannsen Drilling using a SuperRock 5000 RC rig. Each meter was sample using a splitter, and magnetic susceptibility readings taken. Standards (GBM999-3) were included at specific intervals. Standard details are attached. FHRC002 and FHRC003 failed to reach the planned depth after intersecting broken mineralised ground at approximately 84m causing a loss of return air pressure and sample. FHRC006 did not reach planned depth after intersecting a three metre cavity thought to be the old mine workings, also causing a loss in air pressure and sample return. Results were encouraging, and significant intervals of Pb, Cu and Ag mineralisation were intersected. Cross sections are currently being compiled and interpreted, and will be included in next years Annual Report. Results and geological logs are given in Appendices 5 to 8, and are also attached as digital files. A literature review of the Jackson's prospect was completed during the reporting period. The prospect was subsequently mapped and rock chip sampled. Results were encouraging enough to plan a small RC program of four holes. The old workings at Jackson's consist of two shafts, one of which has fallen in (underlayed from about 4.6m depth), the other being about 9.1m deep. Workings concentrated on narrow seams of high grade galena and cerussite occurring in quartz mica schist at the contact with a feldspar porphyry. An average grade of 3% Pb has been estimated from a zone 100m long and 17m wide. Recorded production is 2 tonnes of silver-lead ore. One old pit (on a cerussite show) and several potholes are located within the porphyry, but otherwise the porphyry itself has not been worked. The literature review revealed that the only exploration work completed over the prospect was by Australian Mining and Smelting Co. Ltd (AMS) in 1958. AMS completed a small costeaning program (four costeans) which revealed an appreciable width of lead mineralisation over a probable strike length of 300 ft (91m), thought to represent 1,000 tons of mineralised material per vertical foot. The overall grade at the surface was about 3% Pb. The greatest width of lead mineralisation found was 72ft (22m) in No.3 costean which averaged 5.9% Pb. Other costeans contain somewhat lower values, the poorest being No.1 costean, at the southern end of the prospect showing 1.8% Pb over 25ft (8m). Mapping revealed that the AMS costeans tested the width of the porphyry, but did not extend east into the mica schist and quartz veins (the unit in which the two shafts are located). 28 rock chip samples were collected (see Table 8 for results), including samples of porphyry exposed in pits and costeans (10 Samples), in addition to mullock grab samples containing visible mineralisation (cerussite and galena), and quartz veins. Results were encouraging, with elevated levels of Pb and Ag (up to 17.8% Pb, 378g/t Ag from sample 110256), Cu (up to 1552 from sample 110270), As (up to 6990ppm As from 110277) and Au (0.18g/t Au from sample 110266). The prospect was mapped in detail, and four RC holes were planned to test for Pb and Ag mineralisation within the porphyry and quartz veins. JARC001 and JARC002 were designed to test for an extension to a mineralised quartz vein on which two shafts had been sunk in the 1900's. JARC003 and JARC004 were designed to test for mineralisation within a narrow porphyry unit exposed in an historic costean.