Combined annual report for the Western Project area 16 May 2010 to 15 May 2011

Abstract

The major focus of the reporting period was on the development and Application of the VRMI technology. Emmerson and contract geophysical consultants, Spinifex Geophysics, further developed a processing technology, Vector Residual Magnetic Intensity (VRMI) aimed at existing magnetic data from Emmerson's Tennant Creek tenure package, figures below pre-VRMI & post-VRMI represent the success of the VRMI technology. Immediate identification of highly prospective VRMI targets reprioritised Emmerson's target matrix, the Red Bluff Area in Emmerson's Western Project Area became the No. 1 priority area for exploration activities. Drilling during 2010 at Red Bluff confirmed the VRMI technology with significant intercepts of thick ironstones, although assay results were mixed, the successful ironstone intercepts were evidence to support the development and use of VRMI technology. Further to the VRMI technology Emmerson has completed a Heli-TEM survey over a number of areas early in 2011 to firstly orientate the survey over known deposits and secondly to fly over the highest priority VRMI target areas. Heli-TEM is a helicopter mounted system capable of measuring the conductivity of the rocks to significant depth and will utilise the world's most powerful airborne, time-domain electromagnetic system. A breakthrough during late 2010 and early 2011 has been the recognition that drill core from the mineralised portions of Tennant Creeks historic deposits is conductive up to 80 times the background levels. Emmerson hopes that encouraging results from the Heli-TEM survey will further refine the exploration search workspace within recognised VRMI targets areas. Emmerson flew the Heli-TEM survey over the White Devil Area, located within the WPA, more specifically EL 23914. Work will be conducted over the next reporting period to better define, model and target any positive results from this survey. Any targeting may result in the generation of drill targets. Drilling activity was focused at the Red Bluff Area and consisted of; RAB Drilling - 207 Holes, totalling 10,427m; RC Drilling - 19 Holes, totalling 3,192m; Diamond Drilling - 12 Holes, totalling 5,770.20m.