Combined Annual technical report for the period 4 February 2008 to 3 February 2009 EL 23738, EL 23818, EL 23819, EL 23828, EL 23846, EL 23873, EL 23890, EL 23895, EL 23918, EL 24158

Abstract

Exploration conducted by Prosperity Resources Limited within the Tennant Creek Project tenements during the period 4 February 2008 and 3 February 2009 included modelling of gravity, magnetic, EM and IP survey data, Prospectivity Modelling, RC and diamond drilling, field geological investigations including rock chip sampling and database/GIS compilation. Combined interpretation of the public domain aeromagnetics and detailed gravity data acquired by Prosperity delineated a total of 64 targets. 3D Induced Polarisation and Electromagnetic surveys were conducted over 26 gravity targets. This data was modelled and resulted in the definition of drill targets. This data was modelled and drill holes planned to intersect the geophysical anomalies. Seven geophysical targets were subsequently tested by RC and diamond drilling. Prospectivity Modelling utilising published and open file geological, geochemical and mineralisation data was conducted. The spatial data modelling has successfully modelled the probability of iron oxide copper gold mineralisation in the Tennant Creek region for each 50m grid cell in the study area. 146 new targets with similar probability values to the main producers in the Tennant Creek district were identified. Twenty-two targets have probability values over 0.99 and further exploration on these has been recommended. The district around Tennant Creek is particularly prospective compared to the remainder of the study area which has a low prospectivity at or below the prior probability. The Tennant Creek district is the only part of the study area that has the early fold and faults preserved in association with early porphyry intrusion and ironstone development. LANDSAT 7 ETM+ data was interpreted and resulted in the delineation of 52 targets based on the identification of mineral alteration anomalies and structural relationships within the Tenement Creek Project area. Of these, twenty-eight targets having been given a high priority based on similarities to known mineralisation in the Tennant Creek district. Drilling by RC and diamond methods was conducted to test eight gravity/EM/IP targets and one historical mine targets. Results were not very encouraging with only one intercept of economic grades for gold and copper over a narrow interval. No significant zones of shearing and/or alteration typical of the Tennant Creek IOCG mineralisation were intersected. Work completed to date by Prosperity Resources on the Tennant Creek Project has delineated numerous targets from gravity, magnetic, IP, EM, LANDSAT 7 ETM+ data and Prospectivity Modelling of published geological and open file exploration data. A thorough review of these targets with the aim of prioritising them for further exploration is required. This review should include: Review of geological and open file data; Field investigations which may include ground magnetic surveying, geological mapping and geochemical surveys as appropriate; Modelling of geophysical data were appropriate to refine drill targets and planning of drill holes; Prioritisation of targets for testing based on realistic economic targets; RC and/or diamond drilling to test targets.