Blueys Project

Blueys EL 10228 is a single tenement of 54 sq kms located adjacent to the historic Arltunga Goldfield. It is 100% owned by Western Desert Resources Ltd.

The focus of exploration here is Blueys prospect, located approximately 500 metres south of a prominent quartzite hill. Discovered in 1983 when malachite
veining was noted within dolomite, the prospect has copper mineralisation associated with lead and silver. Previous exploration included soil sampling, revealing an average 29gm/tonne silver anomaly and with elevated based metals. A rock chip sampling and RC drilling programme confirmed the presence of surficial high grade silver-copper-lead, oxidised, supergene mineralisation. The prospect occurs on the Arunta Block – Amadeus Basin unconformity, further enhancing the potential for mineralisation.

During the past 12 months exploration activities have included:

• Acquisition of high resolution magnetic and radiometric data on 100 metre flight lines.

• Acquisition of detailed airborne EM data (“SkyTEM”) over the tenement on 150 metre flight lines.

• Ground radiometric surveys and rock chip sampling.

• Diamond drilling two holes to test a substantial EM conductor.

The SkyTEM survey defined two dominant conductors at the inferred position of the unconformity. The best response occurs adjacent to the historical workings at Blueys Prospect. In addition, the magnetic/radiometric survey defined an area of anomalous response in the uranium and thorium channels, again adjacent to the Blueys prospect.

Rock chip sampling traverses were conducted over the thorium anomalies in the Blueys area over several occasions during the reporting period. A significant
thorium anomaly in the south of Blueys area was sampled; it is associated with an altered granite gneiss close to the unconformity/contact with the Heavitree
Quartzite. One rock chip sample (WDR5_001) was taken on the southern thorium anomaly located about 1kms southwest of the Blueys prospect. Results from this sample show significant elevation in thorium, zirconium and rare earth values including thorium 0.14%, cerium 663ppm, lanthanum 340ppm, neodymium 188ppm and zirconium 0.25%.

Rock chip sampling undertaken on the main thorium anomaly resulted in high thorium, uranium, rare earths, titanium and zirconium values. Three of the samples were re-assayed as zirconium and cerium values were higher than the detection limits.

Two diamond holes were completed by Titeline Drilling P/L in June 2008. The first hole, BL001, was drilled to a depth of 237 metres and the second hole, BL002, was drilled to a depth of 173.5 metres. Both holes intersected a similar sequence of pyritic, carbonaceous, black shales overlying the Heavitree Quartzite. These rocks are the cause of the conductivity anomalies outlined by the airborne EM survey. The pyritic zones from both holes have been sampled. There were no significant base metal values.

The proposed exploration programme for next year will include further rock chip sampling, geological mapping and ground radiometric surveying to outline possible drill targets on the thorium and rare earth element anomalies.