Annual mineral exploration report Borroloola Project MLN 624 for reporting period 1 January 2008 to 31 December 2008

Abstract

MLN 624 makes up part of Sandfire Resources NL Borroloola Project, tenements of which cover approximately 13,000 sq km in the Gulf Country, west of Borroloola, NT. Exploration during 2008 continued an integrated exploration program for base metals along the Coppermine Creek Fault which began in 2004. Following tenement acquisition, geological mapping, research of historical exploration, and a ground IP survey were followed by drilling of an RC / diamond drill hole BRCD1 on MLN 624 in September 2004 in which copper sulphide mineralisation was intersected along a steeply dipping structure within units of the Proterozoic McArthur Group sequence. An infill ground IP was carried out during 2006. A further ground IP survey along the Coppermine Creek Fault was carried out during 2008. Integration and re-interpretation of prior airborne Magnetic - Radiometric and EM surveys over the McArthur Basin sequence within the Borroloola Project tenement area was completed during 2007. During 2008, aerial photography, captured in 2005 at a nominal scale of 1:40,000, was acquired for processing to orthophotographs for use in the field for logistics and further geological mapping. A helicopter borne versatile time domain electromagnetic (VTEM) survey was flown in July and August 2008 along north - south lines at a nominal spacing of 200 metres to integrate with interpretation of the previous airborne Magnetic-Radiometric and EM surveys. In order to satisfy statutory requirements, all previous diamond core from BRCD1 not already submitted to the NTGS Darwin Core Library was retrieved and transported to Darwin in November. Activities undertaken on MLN 624 during the period from 1 January to 31 December 2008 were: Aerial Photography, Diamond Drilling Retrieval of 45 trays (m) from BRCD1, VTEM Survey.