ERL 94 Annual exploration report ending 9 August 2010

Abstract

ERL 94 is a granted lease within the Redbank Copper operational area in the Northern Territory, and currently is in its twenty first year of tenure. During the reporting period, the company completed a substantial drilling programme across prospects within the lease, successfully intersecting copper mineralisation with discovery holes at Roman Nose, Camp Valley and San Manuel. A new resource statement was generated by independent consultants SRK, increasing copper metal for the project by 30%. In 2010, ionic geochemical stream and soil orientation work has been completed across known deposits on the ERL. Work to date indicates that finer fraction (-0.5mm) ionic multi-element stream sampling very successfully delineates copper deposits in excess of 1km downstream from a source, and can be used in the regional targeting of Copper, and associated Ag, As, Co, Mo, U, Pb, and Zn. Stream sampling locally within ERL 94 gave anomalous responses in areas that were unexpected and required further follow up. Ionic soil geochemistry over the Punchbowl to Bluff zones on ERL 94 has been completed, with partial results for either end of the survey area received, and give classic 'rabbit ear' responses over zones such as Bluff for most elements tested. Further ionic soil results are outstanding for a number of historic workings, anomalous zones from conventional geochemistry, and targets generated from the gravity survey that the company intends to drill for additional copper resources.