EL 22488 Ooratippra seventh annual report 3 December 2007 to 2 December 2008

Abstract

An extensive open file research programme was carried out and a review of the results achieved by previous explorers. This work was then correlated with the geophysical and satellite image interpretation and previous work carried out by Southwestern. Lindeman Geophysics Pty Ltd carry out on an ongoing basis, interpretation of NTGS and open file magnetics to identify any magnetic anomalies considered to be possible kimberlites. Additional anomalies have been identified by South-western. A large number of magnetic anomalies have been identified from NTGS airborne magnetics and interpreted to identify any with the potential to be kimberlites. A detailed interpretation located the approximate centre of 70 magnetic anomalies considered to have the potential to be kimberlites. Each magnetic anomaly has been given the identification prefix of CKA. From each location, a 20kg of surface loam was collected and assessed for diamonds and key indicator minerals. Also, a 2 kg sample was collected for geochemical analysis. During year 7, within EL 22488, seven of these anomalies were re-sampled. The locations of anomalies re sampled in April 2008 during year 7. These anomalies were re-sampled by sweeping up surface loam from a larger area than previously done, sieved to -1mm and submitted for diamonds and key indicator minerals assessment and geochemical analysis. From each location, a 20 kg and a 2 kg sample of surface loam was collected through a 1 mm mesh sieve. Diamonds and key indicator minerals The 20 kg samples were sent to Diatech Heavy Mineral Services of Welshpool, WA, for processing for diamonds and key indicator minerals. TNT Transport were used to transport the samples from Tennant Creek to Welshpool. Results of this work are attached. The 2 kg sample of surface loam was sent to Northern Territory Environmental Laboratories, Berrimah, to be analysed for: Au, Pd, Pt, Ag, As, Ba, Bi, Cd, Ce, Co, Cr, Cu, Fe, La, Mg, Mn, Mo, Ni, P, Pb, Th, Ti, U, V, Y, Zn. Assay results are attached. Satellite imagery Google Pro satellite imagery was used for reconnaissance in search of convex or concave topographic features which could reflect the presence of a kimberlite pipe. Four circular features CF4, CF5, CF6 and CF 34 were identified in EL 22488 during Year 7, additional to features identified by the Company in previous years' exploration. The locations of features identified during year 7 in GDA 94 are: CF 4 624594 7587427, CF 5 625417 7586867, CF 6 624827 7686591, CF 34 633815 7583921. CF 5 is a large depression approximately 600m in diameter with 3, probably related, satellite depressions including CF 4 and CF6 of approximately 100m diameter to the northwest, west and south-west. CF 34, eight kilometres to the south-east, is an unrelated concave feature approximately 200m in diameter immediately west of CKA 43 which has anomalous trace elements indicative of what one would expect from a kimberlite. From each location, a 20 kg and a 2 kg sample of surface loam was collected through a 1mm mesh sieve. Diamonds and key indicator minerals. The 20 kg samples 163036 to 163040 and 163044 were sent to Diatech Heavy Mineral Services of Welshpool, WA, for processing for diamonds and key indicator minerals. TNT Transport were used to transport the samples from Tennant Creek to Welshpool. Results of this work are attached. Samples 163051, 163057 and 163061 were sent to Diamond Recovery Services, 92 Ewing Street Welshpool, WA for processing for diamonds and key indicator minerals. Results of this work are not yet to hand. Other minerals - The 2 kg samples of surface loam were sent to Northern Territory Environmental Laboratories, Berrimah, to be analysed for:Majors; SiO2, TiO2, Al2O3, Fe2O3, MnO, MgO, CaO, Na2O, K2O, P2O5, LOi, Be and Sc. Trace elements Ag, As, Au, Ba, Bi, Cd, Ce, Co, Cr, Cs, Cu, Dy, Er, Eu, Fe, Gd, Hf, Ho, La, Mg, Mn, Mo, Ni, P, Pb, Pd, Pt, Sb, Sm, Sn, Ta, Tb, Th, Ti, Tm, U, V, W, Y, Yb, Zn. Assay results are not yet to hand. Prior to commencing initial field work, the co-ordinates and a 1:100,000 Rasta plan showing the proposed sample locations were given to the Central Land Council to enable them to show the landowners. The detailed topography on the plan enabled the landowners to clearly identify the work areas in relation to sites of significance. The scraping up or sweeping of surface loam samples did not create significant disturbance. No field work was carried out by the Company on the Project Area during the year which requires any rehabilitation measures. Results - The Project Area appears to be in a significant structural position and geophysical and aerial photographic and satellite appraisal suggest that a number of magnetic responses and circular topographical features could represent kimberlites. Magnetic anomalies CKA43 and CKA6. CKA43 has been sampled twice, once during year six and repeated in year seven. Each time, 20kg and 2kg samples were collected and submitted for diamond and key indicator assessment and trace element analysis. Diamond and key indicator results from both samples were negative, however geochemical analysis (sample number 163030) shows that almost every trace element including Cr and Ni, from both samples are anomalous. Immediately to the west of CKA43, satellite imagery using recently purchased Google Pro, shows a convex circular feature with a diameter of approximately 200m which could be a kimberlite and has been given the prefix of CF34. The position of CKA43 is below CF34 and the anomalous values appear to come from material shed from this feature. A satellite image showing the locations of CKA43 and CF34 are attached. CKA6, located approximately 18 kilometres southwest of CKA43, also sampled twice, had negative diamond and key indicator minerals but had anomalous trace elements of a lower order than CKA43. There are no obvious topographical features in the immediate vicinity of CKA6. Detailed ground magnetics, surface sampling followed by RAB drilling are proposed for follow-up work in year eight. Circular features CF4, CF5, CF6 and CF 34 The first three, probably related, circular depressions were identified using Google Pro satellite imagery. CF5 is a large circular depression with a diameter of approximately 600 metres. If CF5 is a kimberlite, CF4 and CF6 with diameters of approximately 100m are probably satellite kimberlites. CF4 and CF5 have been sampled with negative diamond and key indicator mineral results. The geochemical results are not yet to hand, however chalcedonic chips on the surface of CF5 may be from an ultra mafic source. CF5 has been re-sampled by taking 20kg and 2kg samples. Diamond and key indicator minerals assessment and geochemical results are awaited and will be forwarded on receipt. CF34 is located immediately west of magnetic anomaly CKA43. Satellite imagery using recently purchased Google Pro, shows a convex circular feature with a diameter of approximately 200m which could be a kimberlite. It has been given the prefix of CF34. The elevation of CKA43 is below that of CF34 which suggests that the anomalous values from CKA43 come from material shed from this feature. Conclusions - The anomalous geochemical results from CKA6 and CKA43 and discovery of a topographic feature CF 34 adjacent to CKA43 are very encouraging and suggest that it could be a kimberlite and warrant follow-up work. Chalcedonic material within the CF5 circular depression lends weight to it being a kimberlite and also justifies further work. Consequently the Company intends to continue with its diamond exploration of EL 22488 for the eighth year of tenure.