EL 23687 EL 24520 and EL 25631 Lake Woods Project Annual Report 17 June 2007 to 2 October 2008

Abstract

The Lake Woods project is located 700 km south of Darwin and 200 km north of Tennant Creek. The project area is centred on the Ashburton Range which runs north-south along the eastern margin of Lake Woods, a large seasonal lake. The Stuart Highway passes through the centre of the area. Bedrock in the area is Middle Proterozoic Renner Group sediments, intruded by pre-Cambrian dolerite. Previous exploration within the district has focused on the potential for diamonds and base metals but has been limited due to poorly developed drainage and widespread alluvial and aeolian cover. The area was identified as conceptual target area based on proprietary methods and modelling conducted by Paradigm Geoscience Pty Ltd. Exploration conducted in the period July 2007 to October 2008 followed-up on results of the 2006-2007. The current exploration program covering EL 23687, EL 24520 and EL 25631 consisted of:

- A large-scale airborne electro magnetic (AEM) survey

- Geological mapping with some additional geochemical rock chip sampling

- Air core drilling to test beneath cover in valleys

- Interpretation of results is ongoing and the future work program is dependent on assay results not yet to hand

- Native title negotiations