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ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 March 2009 ASKINS’ Elkedra SF5307 1:250,000 George Creek 6055 1:100,000 Sandover 6054 1:100,000 Titleholder: Giants Reef Exploration Pty Ltd Report No. 2009- Prepared for Emmerson Resources Ltd By A. Walters & BR Smith Rocksearch Australia Pty Ltd 06 April 2009

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Page 1: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

ANNUAL EXPLORATION REPORT

EL 26267

7 March 2008 - 6 March 2009

‘ASKINS’

Elkedra SF5307 1:250,000 George Creek 6055 1:100,000 Sandover 6054 1:100,000

Titleholder: Giants Reef Exploration Pty Ltd

Report No. 2009- Prepared for Emmerson Resources Ltd

By A. Walters & BR Smith

Rocksearch Australia Pty Ltd 06 April 2009

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CONTENTS 1. SUMMARY 1 2. LOCATION AND ACCESS 1 3. TENEMENT STATUS AND OWNERSHIP 2 4. GEOLOGY 3 5. PREVIOUS EXPLORATION 7 6. EXPLORATION DURING YEAR 1 10 7. PLANNED EXPLORATION FOR YEAR 2 13 8. REFERENCES 14 9. EXPENDITURE 15

List of Figures Figure 1 Tenement Location Map 22 Figure 2 Tenement Geology from 1:250,000 mapping 23 Figure 3 Simplified Geology showing geological provinces 24 Figure 4 Regolith mapping over EL26267 4 Figure 5 U radiometric image over EL26267 5 Figure 6 Th radiometric image over EL26267 6 Figure 7 K-Th-U radiometric image over EL26267 6 Figure 8 Site of previous sampling & identified mag anomalies 8 Figure 9 Phosphate facies horizons with location of EL26267 11 Figure 10 Conceptual model of phosphate deposition 12

List of Appendices Appendix 1 List of Company Reports from Previous Tenure 25

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1. SUMMARY ERL 26267 overlies two geologic provinces; the Proterozoic rocks of the Davenport province to the NW, with the Cambrian sediments of the Georgina Basin to the southeast. EL 26267 has no recorded systematic exploration by previous explorers. Most of the previous work relates to diamond exploration, but the tenement appears prospective for phosphate and possibly uranium. Work during Year 1 consisted of a data compilation and review of previous data, with the aim of determining the prospectivity of EL26267. The tenement appears most prospective for phosphate, but there is also potential for uranium, base metals, tungsten and possibly gold. There has been analysis of airborne magnetics to explore for kimberlite intrusions by previous explorers, but with little success.

2. LOCATION AND ACCESS EL26267 is approximately 255km SE of Tennant Creek (in a straight line). Access via the Stuart Highway and station roads from Tennant Creek is approximately 324km, while access from Alice Springs via the Stuart Highway and Sandover Highway is approximately 393km. The small community of Aherrenge is in the (excised) southern portion of the tenement. Access within the tenement is via tracks to water bores and fencelines (Figure 1). The Trew Creek runs east-west through the northern portion of EL26267. Topography appears to consist of low isolated hills and sandplains.

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3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration Pty Ltd on 7th April 2008 and expires on 6th April 2014. It comprises 245 graticular blocks (779.1 sq km). There are granted Petroleum Licences over EL 26267, awarded to Northern Territory Oil Limited (EP128) and Texalta Australia Pty Ltd (EP103). There are no other mining leases or mineral claims shown within the Licence boundaries. Underlying cadastre consists of 3 parcels of Perpetual Pastoral Lease (PPL 1000 (NT Portion 3431 Elkedra Station); PPL 1107 (NT Portion 1289 Ammaroo Station); and PPL 1133 (NT Portion 1094 Elkedra Pastoral Company). PPL 921 (NT Portion 2981) is owned by the Ooratipra Aboriginal Corporation and is NT enhanced aboriginal freehold land. Within EL26267 a small portion is excised covering the Aherrenge Community. This freehold land is listed as owned by the Areyn Aboriginal Corporation. The expenditure covenant set for the first year was $60,000.

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4. GEOLOGY The regional geology around EL26267 is described in several texts, with Blake et al., (1987) summarizing the geology of the Davenport Province, while Dunster et al (2007) highlights the stratigraphy and mineral potential of the Georgina Basin. There is no 1:100,000 scale mapping by either the NTGS or GA covering EL26267, but the 1:250,000 ELKEDRA sheet summarises the regional geology covering EL26267 (Stidolph et al., 1988).

The oldest mapped units within EL26267 are Early Proterozoic Hatches Creek Group sediments characteristic of the Davenport province further west and north. The NW corner of EL26267 has the ridge forming arenites of the Kurinelli Sandstone cropping out, surrounded by the feldspathic arenites of the Unimbra Sandstone (Figure 2). Calcareous siltstones and arenites of the Frew River Formation have been mapped as an EW-trending sliver surrounded by quartz arenites of the Coulters Sandstone around the SW corner near MGA 53 7625 000N.

Ignimbrites and felsic volcanics of the Newlands Volcanics are mapped in the northwest corner and the SW corner near MGA 53 7625 000N. Wyborn (2002) placed the Newlands Volcanics and the Davenport Granite and volcanics as part of the Proterozoic Treasure Suite, which occurs in both the Tennant Creek Inlier and Davenport Province. The Newlands Volcanics are dated as 1818Ma while the granites (Pgy) are dated 1810Ma. However, work by Fraser (2004) dates the granite and pegmatite emplacement with associated mineralization as contemporaneous with the Strangways Event around 1710Ma. The Treasure Suite is considered related to the Hatches Creek W field (NW of EL26267) with mafic diorites of the Treasure Suite associated with Au mineralization. Near EL26267, the Treasure Suite is more felsic, which may be related to the dominance of W mineralization, rather than Au mineralization. The Treasure Suite is highly fractionated, and Wyborn has grouped it as part of the Cullen Association (Pine Creek). Significant mineralization is associated with the Cullen Association; mainly Au with some Bi, Cu and W. Fractionated peraluminous granites produce Sn.

Unconformably overlying the Proterozoic sediments and felsic extrusives are the Cambrian sediments belonging to the Georgina Basin sequence. Patches of conglomeritic quartz sandstones of the Early Cambrian Andaera Formation abut the Newlands Volcanics and the Unimbra Sandstones within EL26267. Howver, the dominant Cambrian sequence within EL26267 is the fossiliferous organic-rich siltstones, silty limestones and silty dolostones of the Arthur Creek Formation. This unit is known to host phosphatic facies with mineral occurrences identified within the unit elsewhere within the Georgina Basin.

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EL 26267 straddles the Proterozoic units of the Davenport Province in the northwest corner, with the Cambrian sediments of the Georgina Basin cropping out within the central and southern portions of the Licence. Figure 3 shows a simplified interpreted breakdown of geology between the Proterozoic sediments, Proterozoic volcanics / intrusives and the Cambrian Georgina Basin sediments within EL26267.

The Proterozoic Hatches Creek Group rocks have undergone several episodes of structural deformation. Initial deformation formed large synclines and anticlines with a dominant north-westerly trend. These folds have been refolded around northeasterly axes to form complex arcuate domes and basins, which are seen quite clearly further northwest within the Davenport province. Within EL26267, dominant structures include the NE-trending Rockhole Anticline (approx MGA 53 568 800E / 7637 500N), NE-trending faults offsetting Frew River Formation sediments within the Coulters Sandstone, plus NW-trending splays from the Supplejack fault. EW-trending veins have been noted, such as at the Trew Creek mineral occurrence at MGA 53 571 300E / 7627500N where veins strike at 105°. The Trew Creek has eluvial Sn / Ta within W veins.

More than half of EL26267 is mapped as ‘in-situ regolith’, with transported regolith (alluvial plains, floodplains, swamps) following the Trew River watercourse and as longitudinal dunes on the eastern part of the Licence (figure 4). It is worth noting that the radiometric anomalies are within the area of ‘in-situ regolith’ rather than spurious anomalies caused by swamps and other transported regolith material. Field-checking would be required to validate the regolith data as well as the radiometric response.

Figure 4: Regolith mapping over EL26267 (from NTGS Regolith Map; 1:2.5M scale)

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The NTGS has carried out gravity surveys (using 11km spaced gravity stations) over the regional area. EL26267 partly straddles the Sandover gravity low (Stidolph et al., 1988). The gravity low may be a reflection of the sandstone-dominant nature of the Hatches Creek Group. In 1999, the NTGS carried out an airborne geophysical survey covering EL26267. The Elkedra survey is on 400m line spacings flown at a height of 60m. Radiometric images from this survey (uranium and thorium images are from the NT stitch) are shown in Figures 5 - 7. All images are from the NTGS Geophysical image web server.

Figure 5: Radiometric image showing uranium over EL2627. Zones of potential interest

are highlighted.

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Figure 6: Radiometric image showing thorium over EL2627. Zones of potential interest

are highlighted.

Figure 7: Radiometric Ternary K-Th-U image over EL26267. Zones of potential interest

are highlighted.

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5. PREVIOUS EXPLORATION Part of the work done on EL26267 for this year is a literature review and data compilation and the results are in the section below. Appendix 1 contains the list of previous tenure and significant reports from previous tenure. Figure 8 and Appendix 2 show the sites of geochem sampling and magnetic anomalies within EL26267 from previous exploration. Phosphate exploration has been recorded from the late 1960’s, with Vam Limited (AP 2000) carrying out initial stage prospecting using a portable scintillometer for the detection of radioactive anomalies often associated with phosphates. However, an extensive area of Cambrian limey oolitic shales located around Limestone Bore (phosphate mineral occurrence SW of EL26267) did not contain an ‘appreciable’ radioactive count as uranium does not normally precipitate with phosphate in a limey environment. The phosphate exploration was carried out in conjunction with turquoise exploration, as turquoise was found (outside EL26267) hosted within the Middle Cambrian mudstones. The work identified potential for further turquoise discoveries at the same stratigrapic level. No work within AP 2000 was carried out within EL26267. Work carried out on AP 2193 investigated the possibility of Pb and Zn mineralisation within the Devonian sediments. A reconnaissance IP survey outlined an anomalous response west (and outside) of EL26267. A brief ground reconnaissance follow-up did not encounter any ‘mineralisation of any significance’ and the AP was relinquished. However, it’s worth noting that the IP survey was designed to detect subsurface mineralisation, so brief ground reconnaissance would not necessarily be conclusive proof that there was no discernible base metal mineralisation. In 1975, work carried out on EL 999 (mainly west and south of EL 26267) focussed on uranium potential, with ground scintillometer traverses. Some radiometric anomalies were found in sheared and silicified sandstones (Anomaly 73); warped sandstones (Anomaly 74, 75 and 76) within Hatches Creek Group sediments. The location of the anomalies is unclear as the anomalies aren’t shown on maps or given coordinates, but it may be near the WSW boundary of EL 26267 (MGA 53 574500E / 7621 900N). At the end of the exploration programme, it was concluded that the Proterozoic rocks were favoured as a source rock, rather than a host rock for uranium. There was also high thorium noted, with the observation that phosphate was known as a fixing agent for uranium within sandstones, and that phosphate was also associated with thorium and rare earths. There was also an observation that there is

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a relationship between count rates of uranium and vanadium contents. Rock chip assaying was carried out, but again there were no maps to indicate the location of the samples, so the results are meaningless. EL 4043 covered only 26 blocks on the western edge of EL26267, but extended further west. Amoco held the licence from 1983 and targeted the Proterozoic Frew River Formation for stratabound tungsten and base metal mineralisation, particularly in the calcareous horizons. Amoco were in a JV with BHP Minerals with EL4043, but BHP Minerals were chasing diamonds. BHP found no indications of kimberlites and withdrew from the JV after the first year. Three of the heavy mineral samples lie within EL26267 and are within the NTGS DIM Database. Sample locations within EL26267 were digitised in MapInfo and assay data entered into “CR19840095_SAMPLE SITES.txt” which is in Appendix 2. There are 5 rock chip and 4 stream sediment samples within EL26267. Assay results (assayed by Comlabs to ppm level) were not significant, but it is also worth noting that these samples were assayed for tungsten, but not base metals, which was the target commodity. The rock chip samples also appear to have been taken partly within the Coulters Sandstone, rather than along strike of the Frew River Formation. Interpretation of the aeromagnetic data did not produce any sites of interest within EL26267.

Figure 8: Sites of previous sampling by Amoco on EL 4043, plus magnetic anomalies

delineated by De Beers (EL 22505) and Elkedra Diamonds (EL23596) CRA held EL 4603 in conjunction with 4 other licences from 1984 as part of a regional diamond exploration programme. EL 4603 covered the southern portion of EL26267 only. One sample was collected near the southern boundary of EL26267 and is recorded in the DIM database, with the comment ‘not sure if samples were

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ever processed’. After carrying out an orientation airborne magnetic and radiometric survey, CRA concluded that the area was not amenable to detailed magnetics for the purpose of detecting magnetic diatremes. No other work was reported before the tenement was relinquished. Arafura Resources held EL 9709 to explore for a variety of commodities considered prospective within the area, including; Kurinelli-type Au, Hatches Creek-type tungsten, Barrow Creek-type Ni-Cu and diamonds in primary intrusions. First pass soil sampling did not return elevated Au values (ie; no results were >2ppb Au) and none of the base metals values appeared anomalous. The results were consistently lower than regional results from Kurinelli. None of the soil samples are within EL26267. In recent years, diamond exploration has been the focus of exploration within the region around EL26267. De Beers held EL 22505 in 2004, which covered the southern portion of EL26267. De Beers were targeting magnetic anomalies that could indicate kimberlite intrusions that were noted from the NTGS Elkedra Geophysical survey. De Beers carried out an infill airborne magnetic survey, which gave 200m line spacings, with a further infill survey (50m line spacings) over selected magnetic anomalies. Only one mag anomaly, ALA012 (JGA53 584732E / 7619558N) was within EL26267 and was recommended ‘no further work’. Drilling was carried out on other magnetic anomalies outside of EL26267 but the tenement was relinquished within another year. Elkedra Diamonds NL held EL 23596 for a year in 2003. EL23596 covered around 40% of EL26267, mainly covering the NE portion of the Licence. Like De Beers, Elkedra also carried out processing of the NTGS Elkedra Geophysical survey looking for magnetic anomalies that could indicate possible kimberlite targets. Elkedra identified 7 targets, but didn’t comment on the targets and didn’t appear to do any ground checking of the targets. Two targets (ELR-004 – moderate priority; and ELR-006 – low priority) are within EL26267.

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6. EXPLORATION DURING YEAR 1 Work done during Year 1 of tenure consisted of a historic data compilation and prospectivity review. The results of previous work are outlined in the previous section (‘Previous Work’). Work done included checking:

a) historic tenure in MapInfo, using a MapInfo file supplied by DPIFM (containing exploration tenure, but not mining tenure)

b) checking NTGS datasets, such as COREDAT, MODAT, Explorer 3; geophysics data, AGES data

c) checking open file company reports submitted for previous tenure covering EL 26267

d) georeferencing relevant maps and plans into MapInfo to obtain locations of samples and mapped geology within EL 26267 (Figure 8 and Appendix 2).

From this work; a) a list of previous tenure and Industry reports are in Appendix 1. b) there is 1 MODAT occurrence within the tenement (Trew Creek eluvial

tantalite occurrence which is derived from the weathering of an EW-trending quartz vein)

c) no rock chip samples, soil samples, stream sediment samples or drilling reported in Explorer 3 or COREDAT within tenement boundaries

d) no positive results from DIM Database e) results of previous exploration that have been obtained from

georeferencing old maps is shown in Figure 8. The data compilation work shows that the area covering EL26267 has had little exploration. Only 7 geochem samples could be found within the Licence boundaries. The results for these samples were not significant, but it is worth pointing out that the sampling appeared sporadic in terms of both sampling density and elements assayed. Also, some of the assay data was not reported for a couple of the samples. For example, Amoco’s exploration of the Frew River Formation for base metals did not show any assays for base metals. There does not appear to be any follow-up or comment about the eluvial Sn/Ta found in a tungsten vein within EL26267. The tenement application for EL26267 was made to evaluate radiometric anomalies. Work during Year 1 was limited to locating radiometric anomalies on the NTGS images and noting coincident U and Th anomalies within in-situ regolith. There is a relationship between radiometric anomalies and anomalous uranium, plus previous workers have noted a relationship between thorium, phosphate and radiometric responses. Further work should include both a field visit to the zones of interest

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(shown in Figures 5-7) plus a closer look at the publicly available geophysics data (eg; to quantify anomalies and produce U/Th images).

Prospectivity of EL26267 From the previous work, it is clear that EL26267 remains under-explored, with outcrops of both Proterozoic and Cambrian lithologies, mapped zones of structural complexity (multi-angle faults and anticlines), plus radiometric responses in in-situ regolith. Notable commoditites that may be considered prospective within EL26267 are listed below. Phosphate EL26267 is located within a geologically favourable location for hosting phosphate mineralisation. Recent studies by the NTGS highlight that phosphate occurrences are recorded in the same regional area as EL26267 (Khan et al., 2007), with waterbore tests returning 42m of up to 16.9% P2O5 (Fig 9) within fine and cherty siltstone/sandstones of the Cambrian Arthur Creek Formation. This work also highlighted the regional distribution of phosphatic facies in both the NT and Qld (Fig XX).

Figure 9: Phosphatic facies horizons (pale green) with location of EL26267 (red polygon). Blue

text highlights phosphate results from NTGS waterbore testing.

EL26267 contains extensive areas of the Cambrian Arthur Creek Formation, which overlies the Proterozoic sediments of the Hatches Creek Formation. Exploration models used by other explorers (eg; Phosphate Australia; Fig 10) show that a

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favourable environment for phosphate deposition is within shallow water embayments, such as those onlapping areas with Proterozoic sediments. These shallow environments encourage phosphate deposition.

Fig 10: Conceptual model of phosphate deposition against a Proterozoic embayment (from

Phosphate Australia website).

EL26267 has the favourable Arthur Creek Formation sediments onlapping Proterozoic Hatches Creek Group sediments and has not been previously explored for phosphate. The geologically and geographically favourable location, plus the lack of previous exploration makes EL26267 a favourable phosphate exploration target. Base Metals The Frew River Formation of the Hatches Creek Group is considered most prospective for base metals (Blake et al., 1987). Exposures of the Frew River Formation are commonly strongly iron-stained, with deposition considered to have been in a shallow-marine or lacustrine environment, analogous to the McArthur River Pb-Zn deposits. A small mapped outcrop of faulted Frew River Formation is located at approximately MGA53 566 900E / 7625 800N. While Amoco carried out some rock chip sampling in this area, it appears that some of their samples were within the Coulters Sandstone, rather than the Frew River Formation. Also, the samples were not assayed for base metals, and there was no description of samples taken. Base metal occurrences are found widely distributed within the Cambrian sediments of the Georgina Basin (Dunster et al., 2007) so there is potential for base metal mineralisation within the Cambrian sediments within EL26267, particularly as an IP

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response (possibly just west of EL26267) remained unexplained from work done on AP 2193. EL 26267 remains under-explored for base metals. Uranium There are several companies in the area actively exploring for uranium. There is potential for both unconformity-style uranium plus sandstone-hosted uranium. Some previous workers have concluded that the area has rocks that are suitable uranium source rocks, rather than host rocks (see Previous Work; EL999) but it would be fair to note that there has been only a cursory exploration in previous years for uranium. Tungsten and tin The Trew Creek Sn/Ta / W mineralisation has received very little exploration. The Hatches Creek Tungsten Field occurs to the northwest of EL26267. Work done by Geoscience Australia note that the Davenport province has mineralisation that may be associated with the Strangways Event (Fraser, 2004) and that mineralisation (W, Au) is associated with the emplacement of the Treasure Suite. The Frew River mineral occurrence is located close to mapped outcrops of both the Newlands Volcanics and (unnamed) Davenport province felsic intrusives that are considered part of the Treasure Suite. Gold While Arafura Resources limited their gold and base metal exploration programmes further west of EL26267, it is possible that the Kurinelli Sandstone within EL26267 may host Kurinelli-style Au mineralisation. As mentioned above, there may be potential for gold mineralisation associated with the Treasure Suite. There have been no assays for gold within EL26267.

7. PLANNED EXPLORATION FOR YEAR 2 No planned exploration work for EL 26267 has been scheduled for the coming tenure year. Due to Emmerson’s focus in the Tennant Creek Mineral Field, EL 26267 will, unfortunately, not have the adequate exploration required to determine the economic potential of the licence area during the coming years, therefore Emmerson has drafted an ‘Expressions of Interest’ to be distributed to companies operating and/or exploring in the immediate region, this document will be distributed 07 April 2009. If a suitable expression of interest has been received the licence will be transferred to the relevant party, immediately, if no expression of interest is received then Emmerson will relinquish the Licence area immediately.

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8. REFERENCES Blake, D.H., Stewart, A.J., Sweet, I.P., and Hone, I.G., 1987. Geology of the Proterozoic Davenport province, central Australia. BMR Bulletin 226; Department of Resources and Energy, Bureau of Mineral Resources, Canberra. Dunster, J.N., Kruse P.D., Duffett, M.L., and Ambrose, G.J., 2007. Geology and resource potential of the southern Georgina Basin. Northern Territory Geological Survey, Digital Information Package DIP007. Edgoose, C., 2009. Phosphate prospectivity in the Northern Territory. Northern Territory Geological Survey, 2009. Annual Geoscience Exploration Seminar (AGES) 2009. Record of Abstracts. Northern Territory Geological Survey Record 2009-002. Fraser, G., 2004. Defining the ‘footprint’ of tectonothermal events in the North Australian Craton: new Ar/Ar results from the Davenport Ranges and Barrow Creek regions. Northern Territory Geological Survey, 2004. Annual Geoscience Exploration Seminar (AGES) 2004. Record of Abstracts. Northern Territory Geological Survey Record 2004-001. Khan, M., Ferrenczi, P.A., Ahmad, M., and Kruse, P.D., 2007. Phosphate testing of waterbores and diamond drillcores in the Georgina, Wiso and Daly basins, Northern Territory Geological Survey, Record 2007-003. Phosphate Australia Ltd Prospectus, 2008. Prospectus lodged with the ASIC on 26th May 2008. Sourced via Phosphate Australia website; www.phosphateaustralia.com.au Stidolph, P.A., Bagas, L., Donnellan, N., Walley, A.M., Morris, D.G and Simons, B., 1988. Explanatory Notes ELKEDRA SF53-7. 1:250,000 Geological Map Series. Northern Territory Geological Survey. Wyborn, L.A.I., 2002. Granites and Copper Gold Metallogenesis in the Australian Proterozoic. Geoscience Australia www.ga.gov.au

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This form should accompany any Annual or Final Report Email to: [email protected]

1 of 5 Last update:06/05/09

NORTHERN TERRITORY EXPLORATION EXPENDITURE FOR MINERAL TENEMENT

Section 1. Tenement type, number and operation name: (One licence only per form even if combined reporting has been approved)

Type Exploration Licence

Number 26267

Operation Name (optional) Askins Section 2. Period covered by this return:

Twelve-month period: If Final Report:

From 07/03/2008 From

To 06/03/2009 To

Covenant for the reporting period: $60,000 Section 3. Give title of accompanying technical report:

Title of Technical Report Annual Exploration Report EL 26267; 7 March 2008 – 6 March 2009 ‘Askins’

Author Adam Walters & BR Smith Section 4. Locality of operation:

Geological Province

Geographic Location Tennant Creek Region

Section 5. Work program for the next twelve months:

Activities proposed (please mark with an "X"): Drilling and/or costeaning

X Literature review Airborne geophysics

X Geological mapping Ground geophysics

Rock/soil/stream sediment sampling X Other: Re-assessment of Historical Exploration

Estimated Cost: $30,000

Section 6. Summary of operations and expenditure:

Please include salaries, wages, consultants fees, field expenses, fuel and transport, administration and overheads under the appropriate headings below. Mark the work done for the appropriate subsections with an "X" or similar, except where indicated. Complete the right-hand columns to indicate the data supplied with the Technical Report.

Do not include the following as expenditure (if relevant, these may be discussed in Section 7): • Insurance • Transfer costs • Land Access Compensation • Company Prospectus • Title Search • Meetings with Land Councils • Rent & Department Fees • Legal costs • Payments to Traditional Owners • Bond • Advertising • Fines

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This form should accompany any Annual or Final Report Email to: [email protected]

2 of 5 Last update:06/05/09

Exploration Work type Work Done

(mark with an "X" orExpenditure Data and Format Supplied

in the Technical Report provide details) Digital Hard copy

Office Studies Literature search Database compilation Computer modelling Reprocessing of data General research X $4,200.00 Report preparation Other (specify) Tenement Admin $480.00

Subtotal $4,680.00 Airborne Exploration Surveys (state line kms)

Aeromagnetics kms Radiometrics kms Electromagnetics kms Gravity kms Digital terrain modelling kms Other (specify) kms

Subtotal $

Remote Sensing Aerial photography LANDSAT SPOT MSS Other (specify)

Subtotal $ Ground Exploration Surveys Geological Mapping

Regional Reconnaissance Prospect Underground Costean

Ground Geophysics Radiometrics Magnetics Gravity Digital terrain modelling Electromagnetics SP/AP/EP IP AMT/CSAMT Resistivity Complex resistivity Seismic reflection Seismic refraction Well logging Geophysical interpretation Petrophysics Other (specify)

Geochemical Surveying and Geochronology (state number of samples)

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This form should accompany any Annual or Final Report Email to: [email protected]

3 of 5 Last update:06/05/09

Exploration Work type Work Done(mark with an "X" or

Expenditure Data and Format Supplied in the Technical Report

provide details) Digital Hard copy Drill (cuttings, core, etc.) Stream sediment Soil Rock chip Laterite Water Biogeochemistry Isotope Whole rock Mineral analysis Laboratory analysis (type) Petrology Other (specify)

Ground Exploration Subtotal $ Drilling (state number of holes & metres)

Diamond holes metres Reverse circulation (RC) holes metres Rotary air blast (RAB) holes metres Air-core holes metres Auger holes metres Other (specify) holes metres

Subtotal $ Other Operations

Costeaning/Trenching Bulk sampling Mill process testing Ore reserve estimation Underground development (describe)

Mineral processing Other (specify)

Subtotal $ Access and Rehabilitation

Track maintenance Rehabilitation Monitoring Other (specify)

Subtotal $ TOTAL EXPENDITURE $4,680.00

Page 20: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

This form should accompany any Annual or Final Report Email to: [email protected]

4 of 5 Last update:06/05/09

Section 7. Comments on your exploration activities:

Work done during Year 1 of tenure consisted of a historic data compilation and prospectivity review. The results of previous work are outlined in the previous section (‘Previous Work’). Work done included checking:

a) historic tenure in MapInfo, using a MapInfo file supplied by DPIFM (containing exploration tenure, but not mining tenure)

b) checking NTGS datasets, such as COREDAT, MODAT, Explorer 3; geophysics data, AGES data

c) checking open file company reports submitted for previous tenure covering EL 26267

d) georeferencing relevant maps and plans into MapInfo to obtain locations of samples and mapped geology within EL 26267 (Figure 8 and Appendix 2).

From this work;

a) a list of previous tenure and Industry reports are in Appendix 1.

b) there is 1 MODAT occurrence within the tenement (Trew Creek eluvial tantalite occurrence which is derived from the weathering of an EW-trending quartz vein)

c) no rock chip samples, soil samples, stream sediment samples or drilling reported in Explorer 3 or COREDAT within tenement boundaries

d) no positive results from DIM Database

e) results of previous exploration that have been obtained from georeferencing old maps is shown in Figure 8.

The data compilation work shows that the area covering EL26267 has had little exploration. Only 7 geochem samples could be found within the Licence boundaries. The results for these samples were not significant, but it is worth pointing out that the sampling appeared sporadic in terms of both sampling density and elements assayed. Also, some of the assay data was not reported for a couple of the samples. For example, Amoco’s exploration of the Frew River Formation for base metals did not show any assays for base metals. There does not appear to be any follow-up or comment about the eluvial Sn/Ta found in a tungsten vein within EL26267.

The tenement application for EL26267 was made to evaluate radiometric anomalies. Work during Year 1 was limited to locating radiometric anomalies on the NTGS images and noting coincident U and Th anomalies within in-situ regolith. There is a relationship between radiometric anomalies and anomalous uranium, plus previous workers have noted a relationship between thorium, phosphate and radiometric responses. Further work should include both a field visit to the zones of interest (shown in Figures 5-7) plus a closer look at the publicly available geophysics data (eg; to quantify anomalies and produce U/Th images).

No planned exploration work for EL 26267 has been scheduled for the coming tenure year.

Due to Emmerson’s focus in the Tennant Creek Mineral Field, EL 26267 will, unfortunately, not have the adequate exploration required to determine the economic potential of the licence area during the coming years, therefore Emmerson has drafted an ‘Expressions of Interest’ to be distributed to companies operating and/or exploring in the immediate region, this document will be distributed 07 April 2009.

If a suitable expression of interest has been received the licence will be transferred to the relevant party, immediately, if no expression of interest is received then Emmerson will relinquish the Licence area immediately.

Page 21: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

This form should accompany any Annual or Final Report Email to: [email protected]

5 of 5 Last update:06/05/09

I certify that the information contained herein, is a true statement of the operations carried out and the monies expended on the above mentioned tenement during the period specified as required under the Northern Territory Mining Act and the Regulations thereunder.

I have attached the Technical Report

1. Name: Adam Walters 2. Name:

Position: Tenements, GIS & Compliance Position:

Signature: Signature:

Date: 06/04/2009 Date:

Page 22: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

Expenditure for Year 1 on EL 26267 was $4,680.00 against a covenant of $60,000.00 resulting in a shortfall of $ 55,320.00. REASON TO SUPPORT VARIATION OF COVENANT FOR EL 26267 Work done during Year 1 consisted of a historic data compilation and prospectivity review. The results of previous work are outlined in the annual exploration report section ‘Previous Work’. Work done included checking: a) Historic tenure in MapInfo, using a MapInfo file supplied by DPIFM

(containing exploration tenure, but not mining tenure) b) Checking NTGS datasets, such as COREDAT, MODAT, Explorer 3;

geophysics data, AGES data c) Checking open file company reports submitted for previous tenure

covering EL 26267 d) Georeferencing relevant maps and plans into MapInfo to obtain

locations of samples and mapped geology within EL 26267 (Figure 8 and Appendix 2).

From this work; a) A list of previous tenure and Industry reports are in Appendix 1. b) There is 1 MODAT occurrence within the tenement (Trew Creek eluvial

tantalite occurrence which is derived from the weathering of an EW-trending quartz vein)

c) No rock chip samples, soil samples, stream sediment samples or drilling reported in Explorer 3 or COREDAT within tenement boundaries

d) No positive results from DIM Database e) Results of previous exploration that have been obtained from

georeferencing old maps is shown in Figure 8. The data compilation work shows that the area covering EL26267 has had little exploration. Only 7 geochem samples could be found within the Licence boundaries. The results for these samples were not significant, but it is worth pointing out that the sampling appeared sporadic in terms of both sampling density and elements assayed. Also, some of the assay data was not reported for a couple of the samples. For example, Amoco’s exploration of the Frew River Formation for base metals did not show any assays for base metals. There does not appear to be any follow-up or comment about the eluvial Sn/Ta found in a tungsten vein within EL26267. The tenement application for EL26267 was made to evaluate radiometric anomalies. Work during Year 1 was limited to locating radiometric anomalies on the NTGS images and noting coincident U and Th anomalies within in-situ regolith. There is a relationship between radiometric anomalies and anomalous uranium, plus previous workers have noted a relationship between thorium, phosphate and radiometric responses. Further work should include both a field visit to the zones of interest (shown in Figures 5-7) plus a closer look at the publicly available geophysics data (eg; to quantify anomalies and

Page 23: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

produce U/Th images). No planned exploration work for EL 26267 has been scheduled for the coming tenure year. Due to Emmerson’s focus in the Tennant Creek Mineral Field, EL 26267 will, unfortunately, not have the adequate exploration required to determine the economic potential of the licence area during the coming years, therefore Emmerson has drafted an ‘Expressions of Interest’ to be distributed to companies operating and/or exploring in the immediate region, this document will be distributed 07 April 2009. If a suitable expression of interest has been received the licence will be transferred to the relevant party, immediately, if no expression of interest is received then Emmerson will relinquish the Licence area immediately. Therefore Emmerson Resources respectfully requests the granting of the Application for variation to covenant to allow for the low expenditures on EL 26267, due to the focus of Emmerson in the Tennant Creek Mineral Field and its efforts to move the tenement into the hands of an exploration company who can focus on the Licence Area.

Page 24: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

7,590,000 mN

7,600,000 mN

7,610,000 mN

7,620,000 mN

7,640,000 mN

7,650,000 mN

580,

000

mE

570,

000

mE

590,

000

mE

600,

000

mE

7,630,000 mN

Map Ref:

Date:29/3/2009

Scale: 1:250000 Projection: AMG Zone 53 (AGD 66)

Emmerson Resources Ltd

EL 26267Location Map

Author: B.Smith

FIGURE 1

0 2.5 5

kilometres

10

EL 26267

DarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwinDarwin

Alice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice SpringsAlice Springs

EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267EL 26267

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Page 25: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

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7,590,000 mN

7,600,000 mN

7,610,000 mN

7,620,000 mN

7,640,000 mN

7,650,000 mN

580,

000

mE

570,

000

mE

590,

000

mE

600,

000

mE

7,630,000 mN

Map Ref:

Date:29/3/2009

Scale: 1:250000 Projection: AMG Zone 53 (AGD 66)

EL 26267Geology Mapfrom Stidolph et al., 1988

Emmerson Resources Ltd

Author: B.Smith

FIGURE 2

0 2.5 5

kilometres

10

-Phc - Coulters Sandstone

-Phf - Frew River Formation

-Pha - Newlands Volcanics (Treasure Suit

-Pgy - 1810 Ma Treasure Suite: feldspar porphyritic dacitic granoph

-Cua - Cambrian Arrinthrunga Fm

-Cma - Cambrian Arthur Ck Fm

-Cld - Cambrian Andagara Fm

Czc - Cainozoic dessicated colluvian fan

Qr,Qs - sandplain

Qp - claypan

Qa - alluvium

Qc - colluvium

Qc,Qr - alluvium & red earth soil plain

-Phs - Unimbra Sandstone

-Phk - Kurinelli Sandstone

-Pht - Treasure Volcanics

Tf - Tertiary ferricrete

Map Legend

EL 26267

ROCKHOLE ANTIC

CLINE

Page 26: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

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7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN7,630,000 mN

7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN7,640,000 mN

7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN7,650,000 mN

7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN7,620,000 mN

7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN7,590,000 mN

7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN7,600,000 mN

7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN7,610,000 mN

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Emmerson Resources Ltd

Map Ref:

Date:29/3/2009

Scale: 1:250000 Projection: MGA Zone 53 (GDA 94)

Author: B.Smith

FIGURE 3

EL26267Simplified Geology Interp

showing Proterozoic / Cambrianboundary

0000000000000000000000000000000000000000000000000 2.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.52.5 5555555555555555555555555555555555555555555555555

kilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometreskilometres

10101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010

EL 26267

Prot Upper Hatches Ck mafic volcanics

Neoproterozoic Arumbera Sandstone

Prot Lower Hatches Creek GpProt Upper Hatches Ck seds

Proterozoic Treasure SuiteProterozoic Granite

Cambrian Georgina Basin sedimentsCambrian Georgina Basin sediments

Legend

From: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp MapFrom: 1:2.5M NTGS Geology Interp Map

Page 27: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

EL 26267 PREVIOUS TENURETENURE REPORTS COMMENTS DATA CAPTURE

AP2000 CR1968-0051

Progress reports on Ammaroo phosphate and turquoise exploration, NT. This is a collection of various reports from VAM, relating to phosphate and turquoise exploration at Ammaroo. Copper and uranium are also considered targets.

CR1968-0052

Ammaroo Turquoise deposit, report on mapping and drilling results to 01-11-1968. Further drilling and geochemistry recommended to detail the layers of turquoise in the Middle Cambrian mudstones and siltstones.

CR1971-0139 Recommendations of further work & discussions.

AP 2193 CR1971-0070

Final report for AP 2193 Elkedra. Work on AP 2191 was in conjunction with APs 2000, 2018, 2190, 2192 and 2261. The target was base metal mineralisation. Following air photo interpretation, IP surveys were carried out. Two areas were recommended for further work and ground reconnaissance was undertaken. No mineralisation of any significance was encountered and the licence was relinquished.

EL 233 No records found

EL 999 CR1977-0036Yearly review of activities for 1976, special report on ELs 555, 999, 1000 and 1167, Elkedra, NT.

EL 4043 CR1984-0095

Exploration report for the period 25-1-83 to 24-1-84, Elkedra, N T. The Frew River Formation was considered a potential host for stratabound tungsten and base metal mineralisation and 1983 work was primarily designed to evaluate this formation, particularly calcaerous horizons. Calcaerous rocks anomalous in copper, zinc, cobalt and barium were found in a 250 metre wide zone in the Cobalt Bloom locality.

EL 4603 CR1985-0272

Final report for the areas, Arganarack, Bundey River, Mud Hole Creek Arthur Creek, Lucy Creek for the year ending August 1985. The majority of the licence area is not amenable to detailed aeromagnetics for detecting magnetic diatremes. Report also contains a logistic report for the airborne geophysics reconnaissance.

EL 9709 CR2003-0046

Annual report for EL 9709 "Elkedra", year ended 22nd January 2004. No work was undertaken. Proposed work program has been postponed for the next reporting period. No on ground work has been undertaken. Land access negotiations were carreid out.

CR2004-0056

Annual report for EL 9709 "Elkedra", year ended 22nd January 2004. No work was undertaken. Proposed work program has been postponed for the next reporting period.

CR2005-0008

Annual report for EL 9709 year 3, 23/01/2004 to 22/01/2005. No exploration work was undertaken as the Company's resources were directed to other prospects in the NT.

Page 28: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

EL 26267 PREVIOUS TENURETENURE REPORTS COMMENTS DATA CAPTURE

CR2006-0011

Soil sampling programme results, annual and final report on EL 9709. EL 9709 was granted to explore for Kurinelli-type Au, Hatches Creek-type tungsten, Barrow Creek-type Ni/Cu and diamonds. A soil sampling program was conducted and this was the only exploration since grant. Results were that no elevated gold values were obtained. From the 141 sites sampled:- 47 sites returned a value above the detection limit of 1ppb;- no sites returned a value above 2ppb;-The highest value was 2 ppb.None of the other metals assayed were considered anomalous.EL 9709 was surrendered at the last anniversary date.

EL22505 CR2004-0348

Altjawarra Project Exploration Licence 22505 Annual Report for the Period ending 03 July 2004. EL 22505 is held by De Beers to explore for diamonds in kimberlites intruded into the Georgina Basin. In June 2002, 3221 line km of airborne magnetics were flown over this EL. Six anomalies were identified and additional infill aeromag was acquired. In June 2003, five magnetic anomalies were drilled. In all cases, magnetic gravels, part of a network of buried palaeochannels, were found to be the source of the anomaly.

CR2004-0622Final Report - Exploration Licences 22505, 22509 & 23416. No work was underataken in the reporting period and the leases were relinquished.

EL23596 CR2004-0197

Final relinquishment report for EL 23596 "Elkedra River West", period ending February 20, 2004. Exploration License EL 23596 is located on the Elkedra (SF53-07) 1:250,000 sheet in central Northern Territory. This report details all work carried out on the relinquished tenement up to February 20, 2004 by Elkedra Diamonds NL. The Elkedra River tenement does not contain any large “bulls-eye” anomalies likely to be due to large diatremes. However there are seven small high frequency anomalies superimposed on the basement anomaly pattern, which fall within the relinquished area. These small anomalies aredifficult to pick up because of the relatively high frequency high amplitude anomalies of shallow Davenport Fold Belt. Based on the amplitudes and shapes of the anomalies it is likely that theyare within the regolith or are due to shallow basement. Other possible sources include basal Cambrian Andagera conglomerates in paleaovalleys. The relinquished area ranked low priority in terms of diamond prospectivity and no further workis currently warranted.

Page 29: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

EL 26267 PREVIOUS TENURETENURE REPORTS COMMENTS DATA CAPTURE

Page 30: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

EL 26267 PREVIOUS TENURETENURE REPORTS COMMENTS DATA CAPTURE

Page 31: ANNUAL EXPLORATION REPORT EL 26267 7 March 2008 - 6 …...Annual Report EL26267 Report 2009-2 3. TENEMENT STATUS AND OWNERSHIP EL 26267 (Figure 1) was granted to Giants Reef Exploration

EL 26267 PREVIOUS TENURETENURE REPORTS COMMENTS DATA CAPTURE