Annual report for SEL 26825 Crawford 2 for the period 27 January 2009 to 26 January 2010 Barrow Creek JV Project

Abstract

Drilling at the Kroda prospect returned peak results of 4m at 198ppb Au and 4m at 78ppb Au. Both intersections were associated with the northern limb of the 'mineralised horizon' with NEWKRC0016 finishing in amphibolite. The drilling confirmed a 2.3km extension to the mineralised system west of previous drilling consistent with results returned from the orientation BLEG sampling carried out prior to drilling. A small orientation program of BLEG sampling conducted over the Kroda prospect prior to drilling returned a peak value of 269ppb Au. Reconnaissance sampling northeast of the Jarrah Jarrah Range has defined a 0.3 x 6.0km striking east - west anomaly (greater than 10ppb Au) at Sub-Target D with results of up to 41.1ppb Au. There remains potential for poddy high grade mineralisation to be identified within the extensive Kroda mineralised system similar to that seen further east in historic drilling at C1-C5. There has been no follow up of the reconnaissance BLEG Au soil anomaly at Sub-Target D. Newmont has completed the community development projects agreed to in order to gain access to the Kroda prospect. All drill collars and gridlines at the Kroda prospect have been rehabilitated.