EL 10115 and EL 10108 Final exploration report for the period 13 October 2000 to 30 September 2010

Abstract

Exploration for Manganese mineralization commenced in the Eastern Leases in 2000. Since then, various techniques have been used to identify the presence of Manganese in the area, including aerial photography, geological mapping, geophysics (Electromagnetics) and exploration drilling. A total of 465 RC holes have been drilled on the leases intersecting manganese in the majority of the holes. In addition, 2 diamond core holes were drilled primarily to estimate densities. The results indicate that the exploration leases contain an ore body of possible economic potential. GEMCO believes this potential ore body to be a continuous sedimentary deposit which has been partially supergene enriched similar to the orebody on its main mining leases. The quality of the manganese ranges from sandy low grade material, to high quality lumpy (massive) ore. GEMCO has recently been granted Exploration Retention Licences (ERL 28161 and ERL 28162) to enable it to carry out further geological, geophysical and geochemical programs and other operations as outlined in this report as are reasonably necessary to further evaluate the development potential of the ore body.