EL 27732 Annual technical report, Year Three, 25 November 2012 to 24 November 2013

Abstract

The deteriorating price for gold during the last 12 months and the increasing challenges in securing equity funding resulted in a comprehensive strategic and economic exploration review of Blue Thunder's commitment to this property. The postives of the project is the optimally location from an infrastructure perspective and that the presence of gold mineralisation has already been demonstrated. The limited exploration within the larger project area has shown the presence of a larger area and drilling has shown favourable indications for a large gold system, permissive of hosting a large size gold system. The negatives of the project are the deep occurences of gold mineralisation and the associated exploration costs. In addition any economic operation likely requiring suffient vapital and ore grades to support and underground operation. The exploration work completed to date and the incorporation of the latest exploration technologies and concepts strongly the support the case for further exploration work to be focused in the northern portion of the tenement, which appears to be a more central part of the gold system. The presence of better quality gold mineralisation in this area is supported by the structural and exploration model, based on best understandings of the area at this time. This is an area where historical, poartial-leach soil geochemistry recognised the presence of gold anomalies. Conceptually, this is consistent and the project scale of a large fold hinge and the lower-angle dip of the western limb. The structural deformation associated with the shear zone in the area allows geochemical leakeage from the underlying mineral system. Exploration work needs to focus to the west of the drillhole FEND14 around the top and western side of the magnetic feature. Higher quality ground or airborne magnetic and gravity surveys provide useful tools to identify local 'iron stones' which may provide areas of competency contrast with favourable iron contacts and act as goood gold precipitation sites. The thicker fold images will present as thicket areas of the magnetic domain.