Combined annual report for the Western Project area 16 May 2008 to 15 May 2009

Abstract

ELs in the WPA, were acquired by Giants Reef Exploration Pty Ltd (Giants Reef) and Santexco Pty Ltd to search for Tennant Creek style iron oxide copper-gold deposits. Giants Reef Exploration Pty Ltd (Giants Reef) and Santexco Pty Ltd are wholly owned subsidiaries of Emmerson Resources Ltd. This combined report records the exploration work completed on these ELs during the WPA Combined Reporting period from 16 May 2008 to the 15 May 2009. Emmerson opened the reporting period shortly 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 the WPA tenure, in accordance to its business plan and strategy developed during December 2007. A Detailed Ground Gravity Survey, conducted by Fugro Ground Geophysics commenced 27 March 2008. This ground gravity survey was conducted over the majority of Emmerson's Tennant Creek tenure package and included the WPA tenements. The survey was conducted on quad bikes with support from a Toyota Landcruiser 4WD. The readings were taken on a 500m station spacing's, on lines 500m apart oriented North - South with a 250m station offset. 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. 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 included areas of the WPA. 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 5,139km's (approximately 20.9%) 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 commencement and completion of the Detailed Ground Gravity Survey has provided Emmerson with data never captured before in the Tennant Creek field. Analysis, assessment and interpretation of this data commenced during the reporting period and will continue during the next reporting period. Combined with the commencement and completion of a Detailed Airborne Magnetic, Radiometric and Digital Terrain Survey providing even more data for analysis, assessment and interpretation, Emmerson now commands a strong position to conduct effective and aggressive exploration of the Tennant Creek Mineral Field and the WPA. Preliminary analysis, assessment and interpretation of these data sets gathered during the reporting period have provided huge encouragement for Emmerson staff to be able to identify quality targets in the WPA for further analysis, assessment and interpretation, provided good outcomes, drill testing during the next tenure term. 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 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.