Bridging report to cover activities over MLC 558 New Hope for the period 31 December 2005 to 28 Septemeber 2009

Abstract

MLC 558, New Hope, was acquired by Santexco Pty Ltd (Santexco) to search for Tennant Creek style iron oxide copper-gold deposits. This bridging report records the exploration work done on this tenement during the term 31 December 2005 to 28 September 2009. The level of exploration on MLC 558 was limited during the reporting term, due to a number of factors as follows; Giants Reef Mining former owner of Giants Reef Exploration Pty Ltd changed its name to Centralian Minerals in December 2005 before entering into administration in January 2006. Emmerson purchased a group of assets which included Giants Reef Exploration Pty Ltd on 1 August 2006. Emmerson then listed on the Australian Stock Exchange (ASX) on 17 December 2007 following a lengthy and successful IPO raising $20 million. During this period of restructure, administration and IPO all tenements were void of exploration activities and included MLC 558. During 2009 Emmerson further strengthened its financial position by inking an agreement with Ivanhoe Australia to spend $28 million over 5 years to earn a 51% farmin stake on the Tennant Creek Tenements. These strong financial foundations and the employment of new administration and geological staff puts Emmerson in a position assess and review previous exploration and commence new exploration activities. Emmerson commenced its aggressive exploration strategy, which included the completion of a detailed ground gravity survey, airborne geophysical surveys and structural modelling conducted by the Centre for Exploration Targeting (CET) and arm of the University of Western Australia (UWA), with the aim of generating targets for further exploration and drill testing before relinquishing any of the current tenure. MLC 558 was included in the area covered by the ground gravity geophysical survey and interpretation and analysis of the captured data has commenced and will continue during the next tenure term. Initial analysis of this newly captured data has identified a target of interest, Emmerson planned for nine (9) RC holes to be drilled into the identified target. The work program was submitted to the Central Land Council (CLC) for heritage and cultural clearances. The clearances were conducted during May 2009 (C2009-038) but the outcome was disappointing for Emmerson as all proposed drilling collar co-ordinates were ruled out due to the presence of a sacred site. All future exploration of MLC 558 is in doubt, as the clearances conducted during May 2009, by the CLC and Traditional Owners (TO) has excluded the entire tenement from exploration. Emmerson will further engage the CLC and TO's before a determination on holding the tenement is made, during 2010.