EL 7739 Rover Annual report for the period ending 4 June 2009

Abstract

EL 7739 'Rover' was granted on 5 June 2000 and due will now expire on 4 June 2010. The tenement is held by Adelaide Exploration Pty Ltd (formerly Adelaide Resources Limited), a wholly owned subsidiary of Adelaide Resources Limited, a company listed on the Australian Securities Exchange. EL 7739 is located to the southwest of Tennant Creek in the Rover Field. The area is considered to be highly prospective for Tennant Creek style gold-copper-bismuth deposits. EL 7739 was previously explored in conjunction with adjacent EL 8921. EL 8921 expired after a ten-year tenure on 7 March 2009 and a reduced area of the original title is currently held under Exploration Licence application for EL 27292. Work completed on EL 7739 in its ninth year of title included: Drilling of five precollared diamond drill holes (R4ARD12 to R4ARD16) and one diamond tail (to extend existing RC drill hole RV4ARD11) for total 2,200.6 metres drilled. All drilling was carried out at the Rover 4 prospect; Heli-magnetic surveying at 50 metre line spacing over the entire area of EL 7739 and adjacent EL 25512 for a total of 5,233 line Km; Gravity surveying - total 2,123 stations read, including 1,886 stations at 100 x 200m grid spacing and an additional 237 stations at 250 x 500m spacing as regional infill; Selective assaying and magnetic susceptibility readings of previously unsampled drill core from a number of holes drilled by Geopeko in the 1970's; Three water samples submitted for full 'drinking water screen' analyses; Partial rehabilitation of Rover 4 drill sites; and Sacred sit clearances carried out by the Central land Council (CLC). Completion of the drilling program in 2008 was conducted under the authority of an Aboriginal site clearance survey completed in 2005. Special permission was granted by the CLC to allow Adelaide Resources to carry out helimag surveying over the entire area of EL 7739 and to include the area held under adjacent ELA 25512 located immediately to the east of (and contiguous with) EL 7739 due to its imminent granting. EL 25512 was subsequently granted on 1 May 2009. The 2008 drilling program completed at the Rover 4 prospect was designed to follow up a 2007 RC drilling program, which was prematurely terminated due to the mechanical failure of the drill rig compressor. The 2007 program intersected highly encouraging copper-gold mineralisation in drill hole RV4ARD10, including 15 metres at 2.07% copper and 0.15 g/t gold from 221 metres downhole. The mineralisation setting was interpreted to be typical of Tennant Creek style copper-gold deposits.