Combined annual report for the Southern Project Area 16 February 2008 to 15 February 2009

Abstract

Exploration work during the Initial part of the reporting period was limited to desktop studies and 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 early targets for drill testing. This initial work generated a number of targets for drill testing and in-ground exploration work commenced in the SPA on 16 April 2008 at the West Gibbet prospect and continued throughout the entire reporting term. Exploration drilling in the SPA during the reporting period was focused at the following prospects; Malbec (EL's 10119 and 22240); Traminer (EL 23284 and MLC 66 and MLC 67); Analytic (EL 23284); Mondeuse (EL 23284 and MLC 55 and 57); Nebbiolo (EL 23284 and West Gibbet (EL 23284 and MLC 18). 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 SPA 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. Figures 12, 14, 16, 18, 20, 22, 23, 27, 28 and 29 displays the Gravity Reading Stations over the SPA. 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 SPA and is detailed in Figures 13, 15, 19 and 25. 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. 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 SPA. 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 SPA 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 SPA 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 over EL's 10199, 22240, 23284 and 23285 (including MLC's 55, 57, 66, 67 and 18), at the Mondeuse, Analytic, Traminer, Nebbiolo, Malbec and West Gibbet Prospects. 49 Reverse Circulation (RC) holes (TRRC031 - 038; MORC008 - 010; SHRC001; ANRC001 - 002; WGRC024 - 048; NBRC001 and MARC207 - 213) were drilled by Gomex Drilling and McKay Drilling, between 16 April 2008 and 19 November 2008, for a total of 8,713m, and are detailed in the table below. Exploration drilling was conducted over EL 23285 at the Nebbiolo Prospect. 42 Rotary Air Blast (RAB) holes (NERB001 - 042) were drilled by Wild Drilling, between 9 October 2008 and 26 October 2008, for a total of 2,087m. Analysis and interpretation of drilling has commenced and will continue through the next reporting period. On completion of the analysis and interpretation Emmerson will provide all technical details in the 2010 Combined Southern Project Area Report from the exploration activities conducted at the various prospects.