First annual report 13 October 2010 to 12 October 2011 EL 27538 Mercury

Abstract

A VRMI assessment of EL 27538 has further highlighted the prospectivity of the licence. Significant VRMI anomalism is located in the majority of the licence. Further exploration of the anomalism 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 minerlaisation 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 27538 would be a prime candidate for the next round of HeliTEM given its structural setting and substantial VRMI anomalism. HeliTEM surveys will be conducted with the aim of identifying mineralised systems for drill testing. Emmerson ranks EL 27538 has highly prospective. Following the application of HeliTEM to EL 27538 then Emmerson will be able to assess the prospectivity of the licence and hence decide on any exploration or surrender plans.