Combined annual report for the Northern Project Area 16 August 2010 to 15 August 2011

Abstract

During the reporting period Emmerson fly a Heli-TEM survey over a number of areas in the NPA 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 80times 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 has flown this first survey over all three areas of interest in the NPA, more precisely in EL's 23183, 9939, 10016, 27131 and SEL 26595 centred around the Gecko and Orlando Mines (known deposits, Block 1) and the Bishops Creek area (highest priority VRMI area, Block 4), refer to figure 40. Initial interpretation and analysis have identified a number of Heli-TEM anomalies, which are currently being explored under a 'proof of concept' drilling program and is centred in EL 23183 around the Gecko area, should results be encouraging then the drilling of HeliTEM anomalies will be expanded. Induced polarisation surveys have also recently been conducted to further define the identified anomalies and help in refining the drill targets.