ERL 94 Exploration activities report for the 12 month period to 9 August 2009

Abstract

ERL 94 has been subjected to an intensive exploration review under new management. Commencing in April 2009, a comprehensive exploration effort commenced, including: compilation to digital formats of all historic media. Validation of all drill data, including data entry of geology. Confirmatory field mapping. Establish AHD survey control over the lease. Capture of high resolution orthophoto and generation of DTM. Close-spaced small loop TEM survey of Redbank-Bluff corridor. Complete coverage of lease with gravity survey at minimum 200 x 200m, with infill. Partial coverage of the lease with close-spaced ground magnetics and radiometrics and ongoing review of the programme. RC Drilling of advanced targets on the ERL commenced in July 2009, with immediate success at the Punchbowl deposit, where ten holes were drilled and significant copper intersections were received, increasing with grade at depth. Significant copper intersections were also delivered at depth from RC drilling of the Quartzite deposit, where five holes were drilled. Three holes were drilled at two bullseye targets generated by the TEM survey near the Prince deposit, but encountered no copper mineralisation. Work on the geophysical interpretation of the lease is continuing, as is drilling of other targets on the ERL, which will be reported in the 2010 field season.