EL 27541 Myrtle Extended Annual progress report for the period ending 23 March 2011

Abstract

The Myrtle Extended exploration licence, EL 27541 contains prospects for SEDEX (sediment-hosted) style zinc-lead mineralisation and also possible extensions from adjacent mineralisation, such as the Myrtle deposit where a significant SEDEX style zinc-lead deposit has been discovered. The current mineral resource at Myrtle (on an adjacent tenement) is 43.6 million tonnes grading 4.09% Zn, 0.95% Pb at a lower cut-off of 3% Zn + Pb. EL 27541 forms part of the greater Myrtle-Reward project area owned by Rox that has now been joint-ventured to Teck Australia Pty Ltd, who will commence field work on the area in 2011. Work by previous explorers was limited in nature and failed to identify any significant anomalous zinc-lead values. EM conductors and favourable geology may indicate prospective areas for SEDEX style zinc-lead mineralisation and will be investigated during the next tenement year. Acquisition and re-processing of geophysical data was undertaken and showed up a number of areas worthy of further work. Examination of old Mines Department reports did not reveal any results of significance.