2011 Combined annual technical report SEL 27372 Rover and EL 27292 Rover North for the period ending 26 May 2011

Abstract

During the reporting period exploration activities were focussed on drilling operations at the Rover 1 and Rover 4 Prospects within SEL 27292. Nine precollared diamond holes were drilled at the Rover 4 prospect, comprised of 600.5 metres of rotary mud precollars and 3,748.5 metres of diamond core. The target alteration zone was intersected in all nine holes drilled. A number of significant copper +/- gold mineralised intervals were intersected, including 3m at 7.87g/t Au and 1.34% Cu (231-234m) in hole R4ARD32; 9m at 2.12% Cu, 0.33g/t Au (380-389m) in hole R4ARD34, and 15m at 1.7% Cu, 1.49 g/t Au (164-179m) and 22m at 1.87% Cu, 1.3g/t Au (212-234m), including 6m at 2.9% Cu, 3.56g/t Au (226-232m) in hole R4ARD40. At the Rover 1 prospect a total of sixteen holes were drilled on four sections all within the Rover 1 Western Zone. These included six rotary mud pre-collared parent holes (plus one abandoned hole) and nine daughter holes for a total 5,816.5 metres drilled. In addition, five holes drilled by Westgold Resources were extended by Adelaide Resources from the tenement boundary of EL 24541 into SEL 27372, for an additional 456.5 metres. The Rover 1 drilling program has confirmed that the main Western Zone ironstone and underlying stringer zones trend west-northwest from Westgold EL 24541 into SEL 27372. To date the ironstone/stringer zone (the prospective zone) has a strike length of at least 150 metres and remains open to east and west and possibly also to the north. At present the cross strike dimension of the prospective zone averages about 35 metres, while drilling completed between sections 359170mE and 359190mE indicates that the vertical dimension of the prospective zone is at least 250 metres. The recent drilling has intersected a number of high grade intervals in addition to the significant copper intersections reported in hole R1ARD30 in 2010. Significant intersections include 26m at 3.87% Cu in R4ARD35, 19m at 3.31% Cu in WGR1D050, and 5.25m at 4.46g/t Au and 1.14% Cu in R1ARD33-2.