Fifth annual technical report for the reporting period ending 17 April 2011 EL 24817 Alice Springs Project

Abstract

A review of the available geophysical and geological data by Resource Potentials in 2009 and subsequent reconnaissance field mapping by Richard Russell in 2010 highlighted the potential of the Alice Springs project to contain copper mineralisation. Rock chip sampling completed by previous explorers and Russell returned high grade copper mineralisation over a number of areas up to 30% Cu. The high grade copper mineralisation appears to be structurally controlled and associated with magnetite enrichment in some areas. Based on these results a helicopter electromagnetic (HEM) survey was commissioned over two prospect areas within the project in an effort to directly detect copper mineralisation and provide drill targets. The XTEM surveys were flown by GPX Airborne Pty Ltd over the Camp Hill and the Magnetite Hill in May 2010. The Camp Hill survey was flown on north-south lines at 150m spacing, with tie lines flown east-west with 1500m spacing, for a total of 87 lines and 512 line km. The Magnetite Hill survey was flown on eastwest lines at 150m spacing, with tie lines flown north-south with 1500m spacing for a total of 43 lines and 241 line km. The XTEM survey data over the Camp Hill and Magnetite Hill prospects have defined a number of anomalous electromagnetic responses that are considered to be prospective for copper mineralisation. Strike extensive early to mid time channel anomalies that coincide approximately to a known copper mineralisation from rock chip sampling occur at both prospects. A review of the acquired magnetic data from the XTEM surveys and available open file airborne datasets has highlighted 36 magnetic anomalies that are considered prospective for iron mineralisation. These anomalies include the two known prospects, Magnetite Hill and Tripple Hill, which returned maximum rock chip values of 63% Fe and 70% Fe respectively.