Roper Project EL 24655 EL 24655 second annual report for period 17 February 2007 to 16 February 2008

Abstract

Exploration Licences 24655 was granted to Mr. Geoff Fanning on the 17th February 2006. ERD Pty Ltd, a Darwin based resource sector company, is the designated Project Manager. The tenement covers approximately 130 sq km and abut and complement an existing large tenure holding in EL 24986 to form a collective but non contiguous Roper Project Area. Group reporting status was approved by the Department of Business, Industry & Resource Development (DBIRD). The Project Area overlies Roper Group stratigraphy in the Bauhinia Shelf tectonic element of the western McArthur Basin and envelopes extensively mapped eroded ilmenite-bearing source rocks with considerable potential for large tonnage 'insitu', eluvial, colluvial and downstream detrital heavy mineral (HM) accumulations. Titaniferous dolerite sills intrude Adelaidean Roper Group sediments at a number of exposed stratigraphic horizons. The dolerites have been subject to prolonged weathering and erosion during the Tertiary and Recent epochs through to modern day wet season cycles. The parent company of ERD PL, Kokopelli International Inc signed a share sale agreement with Maxwealth International Invest to transfer the shares of ERD in December of 2007. The company is currently being restructured and a new business plan rewritten to include all current tenement and associated exploration and small mine management plans. It is anticipated that EL 24655 under the management of ERD will form a core EL for the com pany and permission to waiver reduction was submitted to the Department in early January 2008 to allow the restructure to be completed and for this EL to be fully evaluated. Year 1 exploration activities incorporated office studies and helicopter supported field reconnaissance, with further analysis of recent airborne photography utilising the current databases of ERD to discriminate potential mineral wealth incorporated in the predominant dolerite sills. Year 2 exploration activities incorporated further office studies with further analysis of 2006 airborne photography utilising the current databases of ERD to discriminate potential mineral wealth incorporated in the predominant dolerite sills. In mid 2007 negotiations to purchase ERD were underway and no further tenement work was carried out as the company would need to be restructured and business plans approved by the new owner. No direct field work was undertaken on the tenement during tenure year 1 or year 2. A comprehensive geological and data review resulted in further identification and regime localisation proximity of insitu heavy mineral accumulations. The majority of effort has been to identify the potential of this tenement with recently acquired digital aerial photography with analysis against current ERD databases and seek joint venture partners or purchasers to allow for its development. This information, when coupled with the current inferred resource discriminated within the lower portion of EL 23048 indicate that a large resource may be available for exploration within the entire tenement. Further field proofing is required before drilling to fully understand the results. Following the field data proofing a moderate drilling program will be required. The tenement has been visited twice by potential purchasers by helicopter after land holder notification to collect representative samples to be sent to China for a full lab assay and as a check of the database held by ERD PL.