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ANNUAL REPORT COOLULLAH TENEMENT EPM 14556 FOR THE PERIOD 22 September 2007 to 21 September 2008 Authors: B Ewert Tenement Holder: Universal Resources Limited Date: 23 October 2009 Copies To: Queensland Department of Mines and Energy, Brisbane 250K Map Sheets: Cloncurry SF54-2, Dobbyn SF54-14 100K Map Sheets: Quamby 6957, Coolullah 6958 Submitted By: Universal Resources Limited This report has been compiled using the Queensland Department of Mines & Energy’s Reporting Guidelines version 01-08-1 and complies with the conditions under Section 141 (1)(f) of the Mineral Resources Act 1989 and Mineral Resources Amendment Regulation (No 4) 2008 unless otherwise indicated.

ANNUAL REPORT COOLULLAH TENEMENT

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Page 1: ANNUAL REPORT COOLULLAH TENEMENT

ANNUAL REPORT

COOLULLAH TENEMENT

EPM 14556

FOR THE PERIOD

22 September 2007 to 21 September 2008

Authors: B Ewert Tenement Holder: Universal Resources Limited Date: 23 October 2009 Copies To: Queensland Department of Mines and

Energy, Brisbane 250K Map Sheets: Cloncurry SF54-2, Dobbyn SF54-14 100K Map Sheets: Quamby 6957, Coolullah 6958 Submitted By: Universal Resources Limited This report has been compiled using the Queensland Department of Mines & Energy’s Reporting Guidelines version 01-08-1 and complies with the conditions under Section 141 (1)(f) of the Mineral Resources Act 1989 and Mineral Resources Amendment Regulation (No 4) 2008 unless otherwise indicated.

Page 2: ANNUAL REPORT COOLULLAH TENEMENT

EPM 14556 – Annual Report, October 2009

TABLE OF CONTENTS Page

1. Compliance Statement 1

2. Introduction 1

3. Location and Access 1

4. Tenure 1

5. Exploration History 5

5.1 Australian Selection (Pty) Limited - 1965 to 1966 5 5.2 Australian Selection (Pty) Limited - 1966 to 1967 5 5.3 CRA Exploration Pty Limited - 1970 to 1971 5 5.4 Chevron Exploration Corporation - 1974 to 1975 6 5.5 CRA Exploration Pty Limited - 1974 to 1975 6 5.6 Minad / Teton - 1977 to 1978 6 5.7 Australian & New Zealand Exploration Company - 1978 to 1979 7 5.8 Dampier Mining Company & BHP Minerals - 1980 to 1983 7 5.9 BHP Minerals Pty Ltd - 1991 to 1996 7 5.10 CRA Exploration Pty Limited - 1994 to 1998 8 5.11 Pasminco Australia Pty Ltd - 1998 to 2001 8

6. Geology 9

7. Work Completed 9

8. Results 12

9. Conclusions and Recommendations 16 10. References 20

Page 3: ANNUAL REPORT COOLULLAH TENEMENT

EPM 14556 – Annual Report, October 2009

FIGURES

Figure 1 Tenement Location Plan 3 Scale: 1 : 500,000 Datum: GDA94 (Zone 54) Page Size: A4

Figure 2 EPM 14556 ‘Coollulah’ – Sub-block Plan 4 Scale: 1 : 150,000 Datum: GDA94 (Zone 54) Page Size: A4

Figure 3 Geology of the Coollulah Tenement 10

Figure 4 Hyperspectral Concept (ex CSIRO) 11 Figure 5 ASTER – False Colour – Mineral Map 13 Scale: 1 : 100,000 Datum: GDA94 (Zone 54) Figure 6 Photograph: Typical black soil country of EPM 14556 – Coolullah 14 Figure 7 ASTER ––Green Vegetation – Mineral Map 15 Scale: 1 : 100,000 Datum: GDA94 (Zone 54) Figure 8 ASTER – Ferrous Iron in Silicates /Carbonates – Mineral Map 17 Scale: 1 : 100,000 Datum: GDA94 (Zone 54) Figure 9 ASTER – AlOH Group Abundance – Mineral Map 18 Scale: 1 : 100,000 Datum: GDA94 (Zone 54) Figure 10 Total Magnetic Intensity image of EPM 14556 19

Page 4: ANNUAL REPORT COOLULLAH TENEMENT

EPM 14556 – Annual Report, October 2009

1

1. COMPLIANCE STATEMENT This document reports results of exploration activity completed on EPM 14556 – ‘Coolullah’ for the year of tenure being 21 September 2007 to 21 September 2008. The activities carried out, for this the 3rd year of tenure, have not fully complied with the statutory Programme of Works of the Exploration Permit. Authorised activities for the 3rd year of tenure included: geological mapping, soil and rock chip sampling, geophysical surveys, RAB drilling and modelling. Work carried out during the reporting period included the procurement and review of geophysical mineral map data.

2. INTRODUCTION Located 65km NNW of Cloncurry, Coolullah forms part of Universal Resources Limited’s Roseby Project group of tenements. The tenement has been subject to considerable surface sampling and drill testing. However, a number of targets within the tenement have not been properly tested. Work completed during the reporting period included the acquisition, review, interpretation and target generation of ASTER data obtained through Geoscience Australia / CSIRO.

3. LOCATION AND ACCESS EPM 14556 “Coolullah” is situated 65km NNW of Cloncurry (Figure 1). The surface topography is flat to gently undulating and is bounded to the west by the Leichhardt River and to the southeast by the Dugald River. Access to the area is via the sealed Burke Development Road then via unsealed roads leading to the west and east. More inaccessible areas may require access by foot or motorbike. Ephemeral creeks may provide the best entry where no vehicular access exists.

4. TENURE EPM 14556 was granted on 22nd September 2005 to Universal Resources Limited (Universal) for a five (5) year term. The tenement comprises of 36 sub-blocks (Figure 2) covering approximately 115km2. A listing of the current sub-blocks is shown below: BIM Block Sub-blocks CLON 27 E, K, CLON 28 A, F, G, H, CLON 100 L, M, Q, R, W,

Page 5: ANNUAL REPORT COOLULLAH TENEMENT

EPM 14556 – Annual Report, October 2009

2

NORM 3339 C, D, E, H, J, K, R, S, W, X, NORM 3340 A, F, NORM 3411 B, C, F, G, H, L, M, N, Q, R, S, Z, NORM 3412 V Universal owns a 100% beneficial interest in this tenement.

Page 6: ANNUAL REPORT COOLULLAH TENEMENT

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10101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010FIGURE 1

Scale: 1:500,000

Date: 27/11/08

Projection: GDA94 (MGA Zone 54)

Project: 175

Paper size: A4

Author: B Ewert

Office: Perth

EPM 14556 - COOLULLAHTENEMENT LOCATION PLAN

Reference

Unsealed Roads

Sealed Roads

Roseby Project Area

Other Universal EPM's

EPM 14556

Page 7: ANNUAL REPORT COOLULLAH TENEMENT

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3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B3411 B 3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C3411 C

3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F3411 F 3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G3411 G 3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H3411 H

3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L3411 L 3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M3411 M 3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N3411 N

3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q3411 Q 3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R3411 R 3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S3411 S

3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z3411 Z 3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V3412 V

27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E27 E 28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A28 A

27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K27 K 28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F28 F 28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G28 G 28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H28 H

100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L100 L 100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M100 M

100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q100 Q 100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R100 R

100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 W100 WFIGURE 2

Projection: GDA94 (MGA Zone 54)

Project: 175

Date: 28/11/08

Paper size: A4

Author: B Ewert

Office: Perth

EPM 14556 - COOLULLAHSUB-BLOCK PLAN

Scale: 1:150,000

Reference

Drainage

Unsealed Roads

Sealed Roads

Roseby Project Area

Other Universal EPM's

EPM 14556

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5. EXPLORATION HISTORY 5.1. Australian Selection (Pty) Limited - 1965 to 1966 (A-P 284M) Authority to Prospect 284M was granted to Australian Selection (Pty) Limited in August 1965 to explore for base metals. No evidence of economic copper mineralisation was identified in the area and outcrop is poor. An airborne INPUT EM survey was carried out followed by ground dip angle electromagnetic and soil geochemical techniques. A number of EM conductors were identified in the current southern area of the central group of sub-blocks of EPM 14556. However, these conductors while emitting a moderate to strong response are not associated with a geochemical anomaly. Overall, this work did not produce any evidence of economic base metal deposits in the area with the permit subsequently relinquished in July 1966. 5.2. Australian Selection (Pty) Limited - 1966 to 1967 (A-P 308M) Covering the western portion of the central group of sub-blocks (of current EPM 14556), Authority to Prospect 308M was granted to Australian Selection (Pty) Ltd in February 1966 to explore for base metals in an area. Stream sediment sampling was carried over most of the tenement with samples analysed for copper, cobalt and zinc. Seventeen anomalous areas and several minor ones were outlined; sixteen showed anomalous copper values, six of these had associated cobalt values, five with associated cobalt and zinc values and one with associated zinc values. However, none of the anomalous samples were taken within EPM 14556 current area of tenure. Follow up work including limited IP surveys and costeaning, was carried out in an attempt to locate possible sources of the anomalous results. This work failed to identify any possible sources with the tenement subsequently relinquished in November 1967. 5.3. CRA Exploration Pty Limited - 1970 to 1971 (A-P 639M) Authority to Prospect 639M was granted to CRA Exploration Pty Ltd to explore for uranium in an area north and south of Coolullah homestead, about 125km north-east of Mount Isa. The company was investigating the possibility that the Longsight Sandstone could be a suitable formation in which to search for uranium deposits of the Colorado Plateau type. An airborne radiometric survey was carried out over the Coolullah area but no significant anomalies were detected, the level of radioactivity being generally very low with only two small areas showing 1.5 to 2 times the background level. Two rotary holes and two percussion holes were drilled to the west of the current northern and central groups of sub-blocks to locate a suitable

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environment for a uranium sandstone deposit. Despite the favourable geological setting, the unsuitable lithology and the absence of an enclosed basin did not favour the concentration of uranium. The tenement was subsequently surrendered in May 1971. 5.4. Chevron Exploration Corporation - 1974 to 1975 (A-P’s 1418M and 1422M) Authority to Prospect 1418M and 1422M were granted to Chevron Exploration Corporation in September 1974. The target of the exploration program was sediment-hosted roll-front type uranium deposits in the Lower Cretaceous Gilbert River Formation and/or the high level sandy Tertiary sediments in an area south of Kamileroi homestead. The company’s exploration program consisted of 31 rotary drill holes drilled to an average depth of 66m (with nine of the drill holes located in close proximity to the northern group of sub-blocks of EPM 14556). Two holes intersected radioactive anomalies (97counts/sec at 151m and 124 counts/sec at 83.5m) in the Gilbert River Formation. Samples were also taken of the basement and assayed for Cu, Ni, Pb, Zn and Ag but the results did not warrant further work. Results showed that the area had little potential for roll- front type uranium deposits in the Gilbert River Formation and the tenement was relinquished in August 1975. 5.5. CRA Exploration Pty Limited - 1974 to 1975 (A-P 1425M) Authority to Prospect 1425M was granted to CRA Exploration Pty Limited in September 1974. The tenement covers the current most southern group of sub-blocks and a portion of the southern end of the central group of sub-blocks (EPM 14556). The A-P was taken out to search for sizeable base metal deposits in the lower schist unit of Soldiers Cap Formation rocks in the Quamby area. Lead-zinc mineralisation was also targeted within argillaceous sediments. CRAE conducted an auger soil sampling programme over copper bearing schists immediately to the south of the southern group of sub-blocks. The programme failed to locate find any major extensions of the mineralisation. Several unrecognised equivalents of the Soldiers Cap Formation were also mapped and a number of small gossans were found but none had potential for economic mineralisation. 5.6. Mines Administration Pty Limited and Teton Exploration Drilling Company Pty Ltd - 1977 to 1978 (A-P’s 1866M and 1867M) Authority to Prospect 1866M and 1867M were granted Mines Administration Pty Limited (Minad) and Teton Exploration Drilling Company Pty Ltd in November 1977 to look for uranium mineralisation. A photogeological study was carried out of a large area, part of which the A-P’s covered. Today, the study covers the southern most group of sub-blocks of EPM 14556 where

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Proterozoic rocks have been identified. Results of follow up geological mapping and reconnaissance drilling by Minad-Teton indicate that the area has negligible prospectivity for sedimentary-type uranium deposits. 5.7. Australian and New Zealand Exploration Company - 1978 to 1979 (A-P 1920M) Authority to Prospect 1920M was granted to Australian and New Zealand Exploration Company in March 1978 to explore for possible sediment-hosted uranium deposits associated with the Gilbert River Formation. The A-P would have covered the majority of the southern portions of the current EPM 14556. A reconnaissance program of ground resistivity surveys indicated a palaeochannel system in the basement below the Mesozoic sediments along the present course of the Dugald River. A nine hole drilling program indicated that the Gilbert River Formation exists as a palaeochannel deposit, and is overlain by blue shales of the Wallumbilla Formation. Although uranium values of up to 8ppm were found in the sandstone, there was no evidence of an oxidised section. The tenement was subsequently relinquished in March 1979. 5.8. Dampier Mining Company Ltd and BHP Minerals Pty Ltd - 1980 to 1983 (A-P’s 2447M and 2457M) Authority to Prospect 2447M to 2457M were granted to Dampier Mining Company Ltd and BHP Minerals Ltd in June 1980. The companies explored for manganese in Cretaceous sediments and oil shale in the Rolling Downs Group in an extensive area between the Leichhardt River, Dugald River and the Cloncurry River. This area comprises Mesozoic sediments deposited in basins between basement highs consisting of Proterozoic granites, metasediments, and other intrusive rocks. As part of the exploration programme a regional style RAB drilling campaign was carried out over the group of tenements. Only one drill hole is located within EPM 14556. Hole D82 was drilled vertically to 30m and was interpreted to have intersected Precambrian basement rocks from 20m. Like the rest of the drilling programme, D82 failed to intersect any significant manganese mineralisation. Subsequently, A-P’s 2453M to 2457M were relinquished in November 1980 with the remainder by January 1983. 5.9. BHP Minerals Pty Ltd – 1991 to 1996 (EPM’s 7971, 7979 and 7981) EPM’s 7971, 7979 and 7981 were granted to BHP Minerals Ltd in mid – 1991. These tenements formed part of the Boomarra Project with exploration principally design to target Broken Hill type Pb-Zn-Ag, SEDEX mineralisation and to a lesser extent, Cu-Au mineralisation styles. Exploration carried out by BHP consisted of geophysical surveys, stream sediment sampling and open-hole percussion drilling. Only a small number

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of stream sediment samples lie within the current bounds of EPM 14556. Like the results from drilling conducted outside the area of EPM 14556, the stream sediment samples failed to identify any significant mineralisation. As a consequence of poor geochemical results, a number of sub-blocks from the majority of tenements that made up the Boomarra Project were relinquished in 1996. 5.10. CRA Exploration Pty Ltd – 1994 to 1998 (EPM 10266) EPM 10266, containing 180 sub-blocks, was granted to CRA Exploration Pty Ltd in1994. The tenement was taken out to test extensions to the Mount Roseby Copper Zone/Corella Formation and Soldiers Cap Group lithologies for Ernest Henry style copper gold deposits, and Cannington style lead-zinc deposits. In December 1996, EPM 10266 was reduced to 90 sub-blocks. A review of all exploration data and an analysis of BHP’s GEOTEM data were carried out over the relinquished part of the Permit. The ground contained no targets that met exploration criteria for the deposit style sought. EPM 10266 was transferred to Pasminco Australia Ltd in August 1998. 5.11. Pasminco Australia Pty Ltd – 1998 to 2001 (EPM 10266) Pasminco Australia Ltd completed the purchase of EPM 10266 from Rio Tinto Exploration Pty Ltd in August 1998. EPM 10266 comprised 90 sub-blocks, of which only two are located on the current EPM 14556 and formed part of the licence renewal requirement to relinquish 10 sub-blocks. Work carried out over the relinquished sub-blocks now located within EPM 14556 consisted only of soil sampling over the Diorite Prospect. The Diorite Prospect is located within the southern most group of sub-blocks of EPM 14556. The sampling programme was conducted to test broad moderate Zn-Pb anomalism previously identified in a stream sediment sampling programme conducted by Rio Tinto. The assays results returned were low with no further work recommended.

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6. GEOLOGY

The Coolullah tenement lies within the Eastern Fold Belt of the Mount Isa Inlier and is underlain primarily by rocks of the Soldiers Cap and Mary Kathleen Groups (Corella Formation), as well as intrusions of Naraku Granite and other mafic igneous rocks (mainly in the southern regions of the tenement). Areas of EPM 14556 are overlain by Mesozoic and Cainozoic sediments. Early to Middle Proterozoic rocks of the Mount Isa Inlier have been subjected to low to medium-grade regional metamorphism with mineral assemblages indicative of lower greenschist to upper amphibolite facies. Regional metamorphism was accompanied by several stages of deformation. Located between the Coolullah and Boomarra faults, the four groups of sub-blocks of EPM 14556 are situated within the Boomarra Horst (Figure 3). Proterozoic basement rocks outcrop in a number of places within three of the four groups of sub-blocks. The remainder of each group is overlaid by Mesozoic and Cainozoic sediments of up to 30m in thickness. The basement comprises folded and extensively faulted meta-sedimentary and meta-volcanic sequences, thought to correlate with the Soldiers Cap Group rocks and possibly with the Corella Formation in the southern group of sub-blocks. The Soldiers Cap Group is undifferentiated, comprising feldspathic quartzite, orthoquartzite, amphibolite, and pelitic (muscovite-feldspar-quartz) schist which have been later intruded by mafic units (primarily dolerites). Due to the lack of outcrop in the eastern regions of the central and southern groups of sub-blocks, aeromagnetic data and scout drilling are essential tools for the geological interpretation of the area.

7. WORK COMPLETED Work during the year focussed on a review and an interpretation of Geoscience Australia / CSIRO’s mineral index maps generated using data from the Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) was carried out during the year. ASTER IMAGING ASTER is an imaging instrument flying on Terra, a satellite launched in December 1999 as part of NASA's Earth Observing System (EOS). ASTER is being used to obtain detailed maps of land surface temperature, emissivity, reflectance and elevation. Aster Imaging works in a similar way to Hyperspectral Imaging whereby, the reflection and emission of hundreds of wavelengths of light from ground features (Figure 4) are measured. It is based on the fact that every chemical has its own unique spectrum - a wiggly line that acts like the chemical’s

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FIGURE 3
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signature. A spectrum shows how a chemical responds to light at different wavelengths, including visible, infrared and ultraviolet.

Figure 4: Hyperspectral Concept (ex CSIRO)

The CSIRO in conjunction with Geoscience Australia (who obtained the original data from Japan's Earth Remote Sensing Data Analysis Center), have developed tools for multi-scene processing of satellite ASTER imagery. The reflectance images are then calibrated / validated using airborne HyMap data (HyMap forms part of the system used for Hyperspectral Imaging). When comparing the measured response of a feature in an image with a library containing spectral data of known absorption features, it is possible to more precisely classify land cover. The data can be processed to map the distribution of selected minerals on the land surface, as well as vegetation. While not providing the same resolution as Hyperspectral data (6 – 7 times resolution), Aster data is becoming widely used in mineral exploration, by helping identify areas of mineralisation, or areas of chemical alteration that may characterise sub-surface deposits at mineable depths. MINERAL MAPPING Using the visible and near infrared (VNIR) to thermal infrared (TIR) radiation from the earth's surface to identify surficial distribution of various minerals, high spatial resolution instruments onboard an orbiting satellite collects data by recording reflected sunlight as it passes over a survey area. Once the data is processed, 14 GIS compatible maps are produced. These are listed below:

• False colour basemap • Green vegetation content • CSIRO Regolith ratios • Ferric oxide content • Ferrous iron in silicates/carbonates • AlOH (muscovite, kaolinite, Al-smectite) content

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• AlOH (muscovite, kaolinite, Al-smectite) composition • Advanced argillic (alunite, pyrophyllite, kaolinite) • FeOH (chlorite, epidote) content • MgOH (calcite/dolomite/chlorite/epidote/amphibole) content • MgOH (calcite/dolomite/chlorite/epidote/amphibole)

composition • Ferric iron and MgOH • Ferrous iron and MgOH • Opaques

The GIS compatible maps can be used in combination with other geophysical methods to identify: cover rocks, source rocks, fluid pathways, host rocks and alteration.

8. RESULTS All 14 maps were reviewed and interpreted with the aim of identifying possible exploration targets for further investigation. A number of interesting features and correlations were recognized within the mineral maps, but no discernable targets were identified. Mineral maps illustrating features are:

• False Colour • Green Vegetation • Ferrous Iron in Silicates /Carbonates • AlOH Group Abundance

ASTER coverage is confined to portions of the two southern groups of sub-blocks. FALSE COLOUR False colour imaging is a graphic technique that displays images in false (not true-to-life) colours so as to enhance certain features. In many instances, false colour images are produced from combining bands of reflected visible and infrared light. An inspection of the False Colour mineral map (Figure 5) distinctly displays: drainage as well as vegetation (trees seen as red dots, particularly along creek beds and around dams) and wide open plains (grey) of black soil country. Small floodplains along tributaries can also be identified by the yellow/beige colour. Mottled areas of brown, mauve and orange are associated with colluvium and areas of outcropping Soldiers Cap Group rocks. Very little structure such as bedding and faults can be seen. A north-south trending line with a perpendicular line heading east can be seen between the two southern groups of sub-blocks. These lines represent tracks along fenced paddock/property boundaries.

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FIGURE 5
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GREEN VEGETATION The Green Vegetation mineral map (Figure 7) measures the abundance of green (as opposed to dry) vegetation cover. Colours range from blue (low content) to red (high content) with very little or no areas of vegetation shown as black. Features such as creek beds can be readily identified by the meandering and somewhat coherent response (solid light blue and red areas, Figure 7). The Dugald River visibly passes by the southeast corner of the southern portion of EPM 14556 trending in a northeast direction. Minor drainage, meandering dark-to-light lines, can be seen feeding into the larger creek. Areas of coherent light blue-green represent areas of thicker vegetation (Figure 7). When cross-correlated with the False Colour image (Plan 1), it shows areas of denser vegetation are associated with colluvium and areas of outcropping Soldiers Cap Group rocks. The cause behind this area of thicker growth is possibly due to soil type (relating to underlying rocks providing a higher nutrient content) or areas with a developed soil profile. Areas of sparse vegetation (black/dark blue, where there is ASTER coverage), are found to the east of EPM 14556 (Figure 7). When viewed with the False Colour image (Figure 5), areas of limited vegetation can be seen associated with zones of grey, possibly reflecting flat areas of high clay, low nutrient content soils. This region north of Cloncurry is known as ‘black soil country’ where it typically supports vegetation consisting of grasses and sedges (Figure 6) rather than woodland plant species.

Figure 6: Typical black soil country on the eastern fringes of EPM 14556 - Coolullah

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FIGURE 7
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FERROUS IRON IN SILICATES /CARBONATES Areas of moderate-to-strong response indentified in the Ferrous Iron in Silicates / Carbonates mineral map (Figure 8), show a moderate association with zones of colluvium and floodplain alluvium from nearby drainage. There are several possibilities as to why there is a response in some areas of colluvial/alluvial sediments and not others.

• responses could be reflecting a ‘reducing’ environment, or • the response has been artificially elevated by fire scars (carbon

black in ash), or • it is the result of chemical and physical dispersion of weathered

products (e.g. Fe2+) of biotite, chlorite, epidote, amphibole etc from an underlying mafic intrusive (Figure 8).

The Dugald River, seen clearly passing by the southeast corner of the southern portion of EPM 14556 as a meandering black line (from the SW to NE, Figure 8), could also be aiding the dispersion of ferrous iron associated minerals, particularly in times of flood. This is evidence by the moderate light blue to green response either side of the Dugald River. ALUMINIUM HYDROXIDE ‘ALOH’ GROUP ABUNDANCE The AlOH Group Abundance mineral map, while presenting a less coherent (more pixelated) image (Figure 9), shows a very similar pattern to the broad area of response identified in the ‘Ferrous Iron in Silicates / Carbonates’ mineral map. This mineral map identifies the abundance of aluminium-bearing minerals such as illite, muscovite, Al-smectite and kaolinite. Such a mineral assemblage may be the result of weathered, underlying intermediate-to-acid rocks. It is unclear why both the Ferrous Iron in Silicates / Carbonates and the AlOH Group Abundance mineral maps produce a very similar area of elevated response (Figures 8 and 9). It is postulated that the response is reflecting an intermediate rock type such as a diorite, rather than an acid or basic (mafic) unit. The intermediate rock could have similar modal abundances of iron-bearing and aluminium-bearing minerals, explaining the response in both mineral maps.

9. CONCLUSIONS AND RECCOMNEDATIONS Mineral Reflectance Map interpretation has not identified any discrete targets for follow-up work within the areas of limited ASTER coverage. This is primarily due to the majority of the sub-blocks, where this is ASTER coverage, overlain by transported sediments of up to 50m thickness.

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FIGURE 8
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FIGURE 9
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FIGURE 10
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Two targets (T1 and T4), identified during an earlier prospectivity review (Ewert, 2006) have yet to be tested. The T1 anomaly, located in the northern group of sub-blocks, is the southern half of a “donut” like circular feature, observable in the TMI image. T4, located in the south-east corner of one of the central groups of sub-blocks, represents an area of intersecting structures, potentially providing a pathway for mineralising fluids (Figure 10). A soil sampling survey is recommended especially over Target 4 where it is believed sediment coverage is relatively thin. If favourable results are retuned, then a programme of infill soil sampling and a gradient array induced polarisation (IP) survey may be warranted.

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Chrismas, D.J., 1966, Australian Selection (Pty) Limited. Authority to

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Marinelli, J.F., 1997, C.R.A. Exploration Pty Limited. EPM 10266 Highway – Partial Relinquishment Report for the Period Ending 19th December, 1996. June 1997. Open File Report Number CR 28944.

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Walker, G.McK.M., 1975, Chevron Exploration Corporation. Final Report,

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