Rum Jungle Project Annual report for the period 6 May 2010 to 5 May 2011 EL 26094

Abstract

During the reporting period, the following activities were completed over the tenement: Geological review and assessment; preparation of an MMP; excavation of 6 costeans for 768m with channel sampling and mapping; geological interpretation and drill targeting by CSA Consultants; and drill site access preparation. Anomalous gold mineralisation was intersected in all trenches, broadly consistent with results reported by previous explorer Nicron Resources. A first pass proposed RC drilling programme has been designed to follow up on the Nicron drillhole results in the northern part of the prospect which has significant mineralised intercepts, and to test the mineralisation between costeans HLCT002 and HLCT003. A number of drill pads have been prepared in advance of an RC drilling programme. Following an independent geological review by CSA of EL 26094, as part of Regalpoint's IPO and entrance to the ASX in early 2011, two target areas were subsequently found to have potential for iron associated Cu-U, iron ore and base metal mineralisation at the Magnetic Anomaly prospect and for U mineralisation at the NE Corner prospect. Further work in these two areas is warranted and will require surface sampling, geological mapping, spectrometer surveys and possibly electrical geophysical techniques. Given sufficient merit, drilling would be required.