First annual report 13 October 2010 to 12 October 2011 EL 27408 Grizzly

Abstract

A VRMI assessment of EL 27408 has further highlighted the prospectivity of EL 27408, as well has having significant positive structural trends such as the Quartz Hill Fault and the Lone Star Structure Emmerson has identified a significant VRMI anomaly, refer to figure 4. Further exploration of this anomaly has be postponed due to the focus of exploration of VRMI at Red Bluff, but then to the exploration, application and 'proof of concept' drilling in regards to HeliTEM. Emmerson has just completed the first phase of 'proof of concept' drilling of HeliTEM targets in the Gecko Area. Drilling has been extremely encouraging with interceptions of high grade copper and intersections of mineralisation present in many of the holes drilled, assays results for approximately half of the drill holes are still pending. This early success gives high encouragement for the success of HeliTEM to identify mineralised systems. A second round of HeliTEM drilling will commence in early November to further support the HeliTEM concept. Should results continue to be encouraging the Emmerson will conduct further rounds of HeliTEM surveys at areas yet to be ranked, but the area covered by EL 27408 would be a prime candidate for the next round of HeliTEM given its structural setting (on the Quartz Hill Fault System, same as the Gecko Area) and the VRMI anomalism. HeliTEM surveys will be conducted with the aim of identifying mineralised systems for drill testing. Emmerson ranks EL 27408 has highly prospective. Following the application of HeliTEM to EL 27408 then Emmerson will be able to assess the prospectivity of the licence and hence decide on any exploration or surrender plans.