Annual report on EL 25794 from 11 June 2011 to 10 June 2012

Abstract

In the reporting year, a stream sediment sampling program was undertaken in the eastern and western part of the tenement. For this purpose, a total of 80 stream/soil sediments and rock chip samples were taken. These samples were assayed for REE and trace element concentrations. In some samples significantly anomalous values of REE were returned which points towards the prospectivity of the project area. In addition, a number of reconnaissance field visits were undertaken Geological and geophysical data were reviewed in order to assess the mineral potential of the project area, which will help to define targets for drilling. Negotiations were held with land owner, particularly in the central part of EL 25794 to commence on-ground exploration activity and also with some companies to explore the project area under a JV agreement. Geochemical sampling program points towards significant potential for REE mineralisation of the project area. In the next reporting period, after securing access in the central part of the tenement, geochemical sampling program will be extended to that part of the project area. This program will lead to target selections for further perusal and will ultimately lead to RC/RAB drilling.