Combined third annual report 28 April 2008 to 27 April 2009 SEL 24979 Walters and SEL 24980 Kestell

Abstract

SEL's 24979 Walters and 24980 Kestell are a consolidation of tenure previously held by Giants Reef Exploration Pty Ltd (GRE) and Santexco Pty Ltd (San) and was acquired to search for Tennant Creek style iron oxide copper-gold deposits. Giants Reef Exploration Pty Ltd and Santexco Pty Ltd are wholly owned subsidiaries of Emmerson Resources Pty Ltd. This report records the exploration work done on SEL 24979 and SEL 24980 during the second year of tenure from the 28th April 2008 to the 27th April 2009. Emmerson opened the reporting period after the successful Initial Public Offering (IPO), raising $20 Million and listing on the ASX on 17 December 2007. Emmerson immediately commenced its aggressive exploration strategy of the Tennant Creek Mineral Field, including SEL's 24979 and 24980, in accordance to its business plan and strategy developed during December 2007. Exploration work included; the commencement of the compilation of all historical drilling data from the Tennant Creek Mineral Field into a robust database, this continued throughout the reporting period and will continue into the next reporting period; the reassessment and remodelling of historical prospects with the aim of generating targets for drill testing. Exploration drilling was conducted in SEL 24980 during the reporting period and was focused at the Troika area; Troika (SEL 24980) - 205 RAB holes for 8,336m. A Detailed Ground Gravity Survey, conducted by Fugro Ground Geophysics commenced 27 March 2008. This ground gravity survey was conducted over Emmerson's Tennant Creek tenure package and included SEL's 24979 and 24980. The survey was conducted by three teams, each team consisted of a quad bike and rider equipped with a station meter. The three teams were supported by a Toyota Landcruiser 4WD Ute. The readings were taken on a 500m station spacing's, on lines 500m apart oriented North - South. Readings in areas requiring more detail were taken on 50 station spacing's on 100m spaced lines oriented North - South. The survey was completed during October 2008. 406 station readings were taken in SEL 24979 and consisted of 406 regional readings. 443 station readings were taken in SEL 24980 and consisted of 443 regional readings. The results from the ground gravity survey were very encouraging with the identification of a large gravity anomaly within SEL 24980. The anomaly is positioned at a triple point intersection of three large mineralised corridors; The Chariot_Peko Corridor Line, The Mt Samuel_Nob Corridor and Southern Shear Corridor. A Detailed Airborne Magnetic, Radiometric and Digital Terrain Survey was conducted by UTS Geophysics and commenced 26 May 2008 and was completed on 22 July 2008. The survey covered areas of the Southern Project Area (SPA) and included the most of both SEL's with the exception of the western most portion of SEL 24979 and the central portion of SEL 24980. The survey was flown with a FU24 - 954 fixed wing survey aircraft on 75m line spacing's, with 750m tie line spacing's and a sensor height of 25m for a total Line KM of 38,278, with 2,461km's (approximately 29.5%) being in the SPA and 5,139km's (approximately 13.43%) being in the WPA. Magnetic Data was captured using a Scintrex Cesium Vapour CS-2 total field magnetometer, Fluxgate three component vector magnetometer, RMS Aeromagnetic Automatic Digital Compensator (AADC II) and a Diurnal monitoring Magnetometer (Scintrex Envi8mag). Radiometric Data was captured using an Exploranium GR-820 gamma ray spectrometer and Exploranium gamma ray detectors. The results from these geophysical surveys has enabled Emmerson to identify a number of targets within both SEL's. Targets identified in SEL 24979 are; ERM 085, 120, 121, 122, 123, 125, 155 and Navigator 3. Targets identified in SEL 24980 are; ERM 052, 106, 150, 156, Pinnacles North, Trinity 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14. These targets were identified from the initial first past analysis of the surveys, with further and with more detailed analysis currently being conducted Emmerson expects to identify further targets related to other anomalies within the licence areas. Emmerson engaged the 'Centre for Exploration Targeting' (CET), School of Earth and Geographical Sciences, FNAS, based at the University of Western Australia (UWA) to undertake some focused geological studies of the Tennant Creek Mineral Field, in collaboration with geologists from Emmerson, through a 3 phase program. The Primary focus of the these programs is to undertake structural analysis at a deposit to camp scale of the Tennant Creek Mineral Field. All tenure in the SPA and WPA was included in this study which commenced in March 2008 and continued through to the end of the reporting period, and will continue into the next reporting period. The work under taken by CET in phase 1 of 3 involved targeted work on advanced prospects and deposits in the Tennant Creek Mineral Field, this was used to refine existing targets and provide further data towards generating near mine targets. Phase 2 of 3 involved developing a better regional structural map and structural model, with a core focus on directly linking outcomes with targeting. Phase 2 is near completion and phase 3 of 3 will be undertaken during the next reporting period. Exploration drilling was conducted in SEL 24980. This exploration drilling targeted the Troika prospect. 205 Rotary Air Blast (RAB) holes (TRB001 - 205) were drilled by Wild Drilling between 28 October 2008 and 14 January 2009, for a total of 8,336m.