MT Shoobridge Project EL 23105 Annual report for the period 26 September 2008 to 25 September 2009

Abstract

Exploration conducted on EL 23105 during the reporting period included geological mapping, rock chip sampling, soil sampling, RC drilling, and a geophysical (VTEM) survey. An RC drilling program was conducted at the Two Nicks and Plateau Point prospects (5th - 14th October 2008). Results were received in mid December 2008. Reconnaissance rock chip sampling was completed over the Brumby and Carruthers prospects, with more detailed rock chip sampling at Kippis. A soil sampling program was initiated at Whatley's Copper (and remained incomplete at the end of 2008). A geophysical (VTEM) survey was conducted over some of the more prospective parts of EL 23105. 6 holes for 692m were drilled at Two Nicks in order to test a NE trending soil geochemical anomaly located near the contact of the Mount Bonnie Formation with the Gerowie Tuff. Rock chips from this area had previously returned up to 32% Cu, with one sample returning 7.23 g/t Au. Lithologies intersected by drilling consisted of siltstones, biotite sandstone, quartzite and granite. All holes intersected sulphide mineralization. Wide intervals of sulphide (pyrite) mineralisation (up to 22%) and graphite alteration were intersected in TNRC002, 005 and 006, but yielded disappointing results with low levels of copper and arsenic returned. The best result of 16m at 0.23g/t Au, 1% As, 0.06% Cu, 0.62g/t Ag from 18m in TNRC003 was not associated with any sulphide mineralisation. In 2008 elevated lead levels (up to 15% Pb with minor zinc and copper) were returned from a number of rock chips from a 'BIF' unit within the Koolpin Formation. Soil sampling identified a coincident 300 m x 150m north-south trending soil Pb (greater than 736ppm), Zn (greater than 284 ppm) and Cu (greater than 146 ppm) anomaly. Four holes for 436m were drilled to test the anomaly. All RC drill holes encountered trace amounts of sulphide - visually the best mineralised intersection was from PPRC001, (56m to 67m) which averaged 5% pyrite over 11m. Four holes for 436 m were drilled at the Plateau Point prospect where mapping, rock chip and soil sampling in 2008 identified base metals mineralisation in a 'BIF' unit of the Koolpin Formation. Broad intervals of low level zinc, lead and silver mineralisation included higher grade intersections. The best intersection was 5m at 1.76% Pb, 0.86% Zn, and 3.7g/t Ag from 31m in PPRC001. In August 2008, 12 rock chips were collected from Kippis. Anomalous results for Au (up to 2.9g/t) and low level Pb and Cu were returned. 21 additional rock chip samples were taken during the reporting period (120520 - 120540), and further encouraging results up to 8.7g/t Au were returned. Outcropping rocks form two parallel ridges (both displaying anomalous gold geochemistry). On the eastern ridge mineralisation occurs in a grey/green silicified unit displaying intense quartz veining and visible sulphide mineralisation (pyrite and arsenopyrite). On the western ridge a quartz vein displaying boxworks returned 8.7g/t Au. Further work including mapping, additional rock chip sampling, soil sampling and literature studies are recommended. 80 soil samples were taken on a 100m x 50m grid to the north of Whatley's copper workings. The program remained unfinished at the end of the 2008 field season. Results were disappointing, with soil sampling identifying a small (100m long) NW trending Cu anomaly ( greater than 266ppm Cu) near the contact of the Mount Bonnie Formation with the Gerowie Tuff. Arsenic levels in soils were elevated (up to 1165 ppm As), but were not coincident with gold anomalism. Slightly anomalous gold levels were returned from one rock chip (359 ppb Au). No further work is recommended for the prospect in the immediate future. Encouraging copper results were returned from rock chip samples taken at the Brumby prospect. Four out of five rock chips (ferruginous sandstone) returned levels of over 4.8% Cu, with a maximum value of 9 % Cu. Results are given in the table below. Further work including soil sampling and additional rock chip sampling are recommended. 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 23105). 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 200 line-kms over EL 23105). East-west lines were spaced 200m apart; additional infill lines were flown over areas of interest. Survey specifications are attached in Appendix 6. Geophysical data was imaged and analysed by Southern Geoscience Consultants who highlighted fourteen conductors coincident with anomalous geochemistry. Reconnaissance field work (including basic mapping and rock chip sampling) was completed in September/October (outside the reporting period), and details will be included in next years annual report. Modelling of VTEM Anomalies in the Kultha area by Southern Geoscience identified a number of targets for follow up drilling.