Second annual report on Fenn Gap Project EL 24839

Abstract

The Fenn Gap project is located approximately 25 kilometres south west of Alice Springs in the Northern Territory. The project is 25 kilometres from major infrastructure such as the Stuart Highway and Alice to Adelaide Railway. The project comprises one Exploration Licence 24839 which covers a total area of 98.82km2. This report describes the results of literature research and target generation based on re-interpretation of magnetic and radiometric data carried out during the first year of the Licence. Recently, Genesis completed reconnaissance rock chip sampling program was conducted over the historical identified Fenn Gap prospect in December 2008. Moderate to high grade iron assay results were obtained throughout the 9.9 kilometres strike length with moderate to high grade manganese was outlined in the Table Prospect area. On the 5th January 2010, the authorization was granted under Section 35 of the Mining Management Act (MMA) by the Director of Mining Performance Division. Genesis has proposed an 11 RC drill program, totaling 1,100 over the most promising gravity targets, as per the below map (Appendix 1 shows the cross section of each interpreted mineralized zone) Genesis is still currently waiting on the Central Land Council to complete its land clearance and Traditional Landowner consultations. The pending authorization from the CLC will be given in approximately 2 weeks from the end of March 2010.