Love Creek project EL 25164 Annual report for the period 5 November 2010 to 4 November 2011

Abstract

This fourth annual report describes activities conducted for the period 5 November 2010 to 4 November 2011. The results of the year 1 program did not establish precise targets for drilling. It was decided that an Airborne Electromagnetic Survey may locate conductive targets in the favourable host lithologies which could be tested by drilling. These would be bedrock conductors representing graphitic or chloritic / pyritic facies and or structures. During Year 2, an AEM Survey was flown by Fugro Geophysics in association with Geoscience Australia. After many delays, the initial survey data was received in May 2009. This was later processed and interpreted Drill targets were chosen using these conductors, their potential host stratigraphy, proximity to surface uranium anomalies and accessibility. Drill follow up to test these litho-structural targets by Reverse Circulation drilling was planned be done at the peak of the next dry season in year 3 when access is to the flood plains was available. During May 2010, a field reconnaissance was made to locate access to the planned drill sites. Some minor access clearing and upgrading will be required prior to drilling. Some access was still boggy in May. Unfortunately there were delays in the approval of the Mine Management Plan which was only received on 23 September 2010. Efforts were made to organise staffing and drill contractors in time before the wet season. However rain began in October and with most holes being near the flood plain, access was not possible or dubious to most, if not all, planned drill sites. This program was then planned for year 4 in the dry season. This was delayed while discussions continued with a group who were to finance the ongoing programs but this recently fell through. Discussions are now with alternative potential investment parties. It is now planned to convert the planned drilling to RC with diamond core tails to be drilled in Year 5. The conductors and an anticline targets also represent possible gold targets.