EL 22856 Saddles Extended Annual report for the period 5 February 2010 to 4 February 2011

Abstract

Significant work was undertaken for the year ending 4 February 2011 within EL 22856 Saddles Extended targeting Frances Creek style hydrothermal hematite mineralisation and comprised: Seven (7) PQ3-diameter metallurgical diamond drill holes specifically targeting the hematite-goethite iron ore mineralisation of the Saddles Extended deposit, for 273.4 metres; Commencement of detailed metallurgical test work on drill core from the above programme at Nagrom Laboratory in Perth (all results pending at reporting year end); Completion of 15.3 line km of ground gravity surveying by Haines Surveys Pty Ltd, as part of a larger geophysical programme across exploration tenements north of the Frances Creek Mine; Geophysical interpretation, targeting and reporting of this ground gravity data (incorporating all historical data for EL 22856) by Hawke Geophysics Pty Ltd; Updating of associated Aboriginal Heritage work was conducted over the proposed work areas prior to ground disturbance (holes were all completed on previously disturbed RC drill pads and largely twinned the historical RC holes as a result); A review of the previous Mineral Resource model generated in the 2009-10 reporting year was undertaken in-house and this was classified at a pre-JORC confidence level; A significant review of historical drilling and geological mapping data was also undertaken and it was determined that the prospective Koolpin Formation had been poorly examined by exploration in the recent past; Areas directly north of the low-grade Elisabeth Marion deposit within the highly prospective Wildman Siltstone Formation had received no direct exploration (new geophysical targets are located here); and Territory was compiling a large MMP at reporting year's end, which incorporates exploratory drilling and geological reconnaissance works for 2011-12.