Bridging report to cover exploration activites over MCC 1034, 16 November 1990 to 13 August 2009

Abstract

MCC 1034 is located east of ML 22284 Billy Boy tenement in Emmerson's Eastern Project Area (EPA). The billy boy tenement encompasses a number of historical mine workings, including Gigantic, Metallic Hill, Lady Mary, and a number of prospects such as, Billy Boy, Fairway, Ganymede, Callisto and Blue Moon. The level of exploration on MCC 1034 was limited during the last tenure term, due to a number of factors as follows; The first factor - Giants Reef Mining former owner of Santexco 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 Santexco 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 MCC 1034. 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. MCC 1034 was included in the areas covered by these geophysical surveys and interpretation and analysis of the captured data has commenced and will continue during the next tenure term. Emmerson ranks the tenements as highly prospective, defined by underlying Warramunga Formation units, the presence of a number of an Au anomalous ironstone and its proximity to historical mines and prospects in the Billy Boy region, refer to accompanying bridging report. The claim covers a magnetic anomaly which was identified as a result of a low level airborne geophysical survey conducted by GeoPeko in 1984. The evaluation of the source of this anomaly was conducted under EL 4536 by Peko Wallsend Operations Ltd. The work conducted included gridding, ground magnetics, percussion diamond drilling, geochemical analysis of drill core and a downhole magnetic survey. DH1 was drilled during October and November 1984 and it successfully intersected approximately 70m of lode material (Talc-Hematite/Magnetite, Quartz Hematite/Magnetite and Altered Sediment), half core splits from this interval were insufficiently encouraging to warrant immediate continuation of the drilling program. A second hole (DH2) was drilled and aimed at a target 170m below grid coordinates 1000E/1030N, while it failed to pass through the target point due to excessive steepening, a number of poorly mineralised intervals of ironstone were encounted. Proposed exploration activities on MCC 1034 will be aimed at the Explorer 195 magnetic anomaly, which is distinctly clear of the accompanying bridging report, and provides encouragement for further evaluation of the anomaly. Emmerson hasn't scheduled further evaluation of this target in the next two year period due to higher priority areas within the EPA, which includes Pepperjack, Clown, Joker, Golden Forty, Flag, Comstock, New Hope and Brumby just to name a few. Further evaluation of the identified magnetic anomaly will occur during the 2010/2011 wet season with the aim of generating targets for drill testing during the following field season. Santexco Pty Ltd respectfully requests that MCC 1034 is renewed for a 10 year term to allow for the analysis of the data captured during the 2008 field season and given good results, the generation of drill targets to test.