Annual report on mining lease 23812 Spring Hill for the period 16 January 2007 to 15 January 2008

Abstract

Office studies have been carried out including database compilation, literature research, drill section output and planning for future drilling programmes. The previous metallurgical testwork carried out by Ross Mining NL has been reviewed by Bemex Corporation. Satellite imagery (Quickbird VHR) was purchased for the Spring Hill area. Drillcore samples from Spring Hill were sent to Ammtec Laboratories for physical testwork. A database was compiled containing all of the previous drilling information. The coordinates in these files refer to the local grid. Studies of the drill hole sections showed that the gold mineralisation was erratic and that higher grade zones could rarely be traced between section lines 25m apart. Initial results from the metallurgical testwork by Ammtec indicate that the Bond ball mill work index is in the typical range for oxide gold ore and has a moderate value. The results also indicate that SAG milling could be considered as an option. There was no expenditure commitment for ML 23812 for the current year. Actual expenditure was $49,661. The proposed exploration programme for 2008-2009 will include an airborne EM survey, a scoping study covering the metallurgical and processing aspects of any development and further geological studies. Depending on the results of this work further exploration drilling may be undertaken.