EL 23687, EL 24520 and EL 25631 Lake Woods Project Combined annual report 3 October 2008 to 2 October 2009

Abstract

The Lake Woods project is located 700 km south of Darwin and 200 km north of Tennant Creek. The project area is centred on the Ashburton Range which runs north-south along the eastern margin of Lake Woods, a large seasonal lake. The Stuart Highway passes through the centre of the area. Bedrock in the area is Middle Proterozoic Renner Group sediments, intruded by pre-Cambrian dolerite. Previous exploration within the district has focused on the potential for diamonds and base metals but has been limited due to poorly developed drainage and widespread alluvial and aeolian cover. The area was originally identified as conceptual target area based on proprietary methods and modelling conducted by Paradigm Geoscience Pty Ltd. Exploration and associated activities conducted in the period 3rd October 2008 to 2nd October 2009 consisted of reconnaissance geological mapping, an air core program and subsequent geological and geophysical modelling to produce diamond drilling targets for the 2009 field season. The current exploration program covering EL 23687, EL 24520 and 25631 consisted of: Geological mapping and interpretation; Aircore drilling to test beneath cover in valleys; Compilation and assessment of results by Crossland personnel and the company's consultants; Reinterpretation of all geophysical data in light of drilling results; and A detailed sacred site survey conducted by the Aboriginal Areas Protection Authority (AAPA) in advance of a proposed diamond drilling program.