EL 22856 Saddles Extended Annual Report for the period 5 February 2013 to 4 February 2014

Abstract

Significant work was undertaken during the reporting year within EL 22856 (Saddles Extended tenement) targeting Frances Creek style hydrothermal hematite mineralisation and comprised: One hundred and nine (109) Reverse Circulation (RC) drill holes specifically targeting the hematite-goethite iron ore mineralisation at the Elizabeth-Marion prospect, for 6,509 metres; A total of 29.74 line kilometres consisting of 1,212 gravity stations; An airborne electromagnetic survey was flown over part of the Frances Creek Project area (including part of EL 22856) to assist in mapping the structure of the host stratigraphy of the Frances Creek mineralisation. The detailed interpretation and targeting study completed by Hawke Geophysics covers potential mineralisation in the lower Wildman Formation between the Ochre Hill Pit and the Millers Prospect. Several parallel trends of the prospective host shale were identified. Each of these is inferred to represent a synclinal fold structure, with the main fold axis roughly parallel with bedding. Structural complexities such as faulting or refolding of these stratigraphic trends may be important triggers in the development of iron mineralisation. From this, six high priority untested target areas for (perhaps concealed) iron mineralisation were identified. It is recommended to follow up on theses geophysics targets with ground trothing and possible drill testing. Drilling during the reporting period at the Elizabeth Marion prospects seems to indicate encouraging goethite and hematite enrichment that would require further investigation. In particular, it is recommended to continue to investigate possible strike extensions to mineralisation at the Elizabeth Marion prospect, as work to date work indicates there is potential for blind mineralisation with a shallow northwest plunge.