Mt Shoobridge Project EL 25181 Annual report for the period 6 November 2008 to 5 November 2009

Abstract

Exploration conducted on EL 25181 during the reporting period included an open file review, rock chip sampling and a geophysical (VTEM) survey. A Versatile Time-Domain Electromagnetic (VTEM) airborne survey was completed in September over some of the most prospective areas of the Shoobridge tenements (including EL 25181). The survey was designed to improve the Company's understanding of the geology; including structures controlling uranium mineralisation and to identify discrete conductors, prospective for base and precious metal mineralisation. The survey was completed by Geotech Airborne Pty Ltd. Approximately 641 line-kms were flown using an AS350B3 helicopter (roughly 248 line-kms over EL 25181). Eastwest lines were spaced 200m apart. Reconnaissance field work (including basic mapping and rock chip sampling) was completed in September/October 2009. Ground reconnaissance over the six VTEM conductors revealed that three of the anomalies were due to surface cultural features. 27 rock chip samples were collected during the reporting period. 7 samples were taken from VTEM anomaly 10320b, located on the banks of Hayes Creek. Mullock samples (brecciated iron rich sediments and quartz) were taken from a number of shallow pits. It is unclear if the pits are old workings, or related to a WW11 cultural feature (small concrete pads and iron piping located nearby). No anomalous results were returned (maximum 11ppb Au). 7 rock chips were taken from the north-eastern portion of EL 25181, near Thundelarra's Corkscrew uranium prospect. The prospect is located on a fold axis in the Mount Bonnie Formation, which trends in a north-easterly direction through the eastern margin of EL 25181. No anomalous results were returned (up to 9ppm U from a haematitic sandstone, and 31ppb Au from a quartz vein containing specular haematite). A hand held spectrometer gave readings of up to 328 cps from sandstone units (slightly above background), but no visible uranium mineralisation was identified. A number of rock chip samples were taken from iron rich - massive iron horizons within the Depot Creek Sandstone (possibly fractures/joints). Iron occurs as massive to botryoidal hematite (up to 1m wide and 220m long). 9 samples returned iron levels of up to 60%, however there were no anomalous gold or base metals results. 2 rock chip samples were taken to test Young and Everleigh's anomalous Au (14.4g/t Au) results at the top of an escarpment consisting of the Depot Creek Sandstone. The anomalous results could not be reproduced.