EL 27143 Mountain Creek Project Annual Exploration Report 24 August 2011 to 23 August 2012

Abstract

Exploration activities conducted by WDR during the third year of tenure have included an airborne magnetic and FalconTM gravity survey over the southern portion of the tenement in conjunction with EL 25688 (Tianda); reverse circulation drilling of 5 holes for 271 m; 97 drill samples for chemical analysis; rock chip sampling with 30 samples submitted for chemical analysis and reconnaissance geological mapping with recordings at 600 stations. The RC drilling has intersected oolitic iron-ore mineralisation with individual metre samples of up to 56.87 percent Fe in hole MKRC0037. The best intersection of iron-ore mineralisation in the drilling was intersected in MKRC0036 with 5 m at 46.33 percent Fe from 20 m. The unit bedding is steeply dipping with the apparent thickness interpreted to much greater than the true thickness. Gravity has been used successfully to define iron-ore mineralisation on other projects. Future drilling is planned to test the validity of the gravity data by targeting zones of higher gravity response within the Sherwin Iron Member. WDR intends to conduct further geological mapping, rock chip sampling and RC drilling during the 4th year of tenure.