EL 22301 Annual report for period ending 13 April 2010 Speargrass

Abstract

Mt Wells has been worked sporadically since Tin was found there in 1880. It is located on an elevated hill containing six known en-echelon, tin and copper mineralised lodes comprising tension?fill quartz veins striking 015 - 025 up to 1km and dipping 75-85 east. Previous work on the Mt Wells deposit has indicated a possible underground target of 737,000t averaging 1.38 % Sn, and a further open cut target of 400,000t grading 0.4% Sn. The area was worked mostly by Chinese from 1901 to 1929 and the Commonwealth Government constructed a battery and gravity treatment plant in the 1960s. Jingellic Minerals and the Northern Territory Mines Department were active in the 1970s and Territory Resources undertook an RC drilling program in 1989, before selling the Mt Wells leases to Softwood Plantations in 1994. Outback Metals purchased Softwood Plantations in 2008 and immediately undertook a drilling program consisting of 34 RC holes for 2907m and 1756 samples. A resource estimate based on the new and historical drilling has been delayed due to potential understating of the Sn assay grades of the 2008 drilling. To address this issue, a program is currently in place to re-assay all available RC samples from mineralised sections of the 2008 drill holes. Additional work undertaken in the reporting period includes field mapping in June 2009 to identify possible extensions of the Mt Wells lodes. A total of 27 rock samples were assayed primarily for Sn and Cu, with 3 samples indicating an extension of the East lode. Tempest electromagnetic data was acquired from Geoscience Australia over the area of EL 22301. Several prospects were visited on the EL.