Combined annual report for EL 26433 year ending 28 April 2009

Abstract

During the year, no exploration activity was undertaken on the Exploration Licences as the Company continued to wait for a land access agreement from the Central Lands Council. Red Gum Resources (the Company), originally submitted land access agreement drafts in early February 2008. These were identical to a Section 41 application under the ALRA regulations, and therefore far more onerous than a standard Native Title agreement. Despite repeated requests, no draft agreements were received from the Central Lands Council by the end of the permit year. A completed Mine Management Plan (MMP) for exploration was submitted to the NT Government and approved on 21st August 2008. Historically, copper mineralisation has been found on the contact between the Goyder Formation and Pacoota Sandstone, in hydrothermal sandstone hosted deposits, or on faulted contacts that juxtapose younger sandstones against older source and host sediments (frequently shows noted as 'sedimentary Cu'). Exploration has yielded a tantalising small copper orebody in the Waterhouse structure and government drilling resulted in assays of up to 2500ppm Cu at the Ringwood prospect, where visual Malachite, Azurite and Chalcocite can be (reportedly) traced in a green dolomitic unit along a strike length of approximately 8km. Red Gum was to acquire a substantial amount of geochemical data via Auger sampling, which is defined as 'substantial disturbance' according to the Mining Act, and needs both an MMP and land access agreement. As the land access agreement had not been provided to the Company in a draft form by the end of the permit year, no exploration activity was undertaken.