Burt Plain Project

This project comprises one exploration licence, EL25338, of about 800 sq kms which is located 40 kms north of Alice Springs. The area of interest was originally identified as an iron ore prospect from government aeromagnetic data.

Western Desert Resources Ltd and NuPower Resources Ltd entered into the “Bushy Park” joint venture on 5th February 2008. NuPower Resources Ltd can earn a 51% interest in energy minerals on the tenement by spending a total of $1,000,000 on this EL and Mueller Creek EL25658 within three years. The tenement area includes outcrop of high grade metamorphics of the Palaeoproterozoic Arunta Block. Interpretation of government aeromagnetic and gravity information shows anomalies indicative of a huge iron oxide system. Gravity and induced polarisation (IP) surveys carried out last year at the Capricorn prospect confirmed the likely presence of significant amounts of sulphides and iron oxides.

This suggested possible targets of commercial interest include Olympic Dam style IOCG deposits or nickel sulphide deposits of the Voisey’s Bay or Norilsk type.

Five holes were drilled on various gravity, magnetic and IP anomalies within the Capricorn Prospect for a total of 1,832.5 metres.

The holes intersected mafic gneisses from shallow depth with a consistent magnetite content of about 10%, which explains the observed magnetic and gravity anomalies. All holes also intersected substantial intervals of pyrite, which is clearly the source of the IP responses. Drill core samples were analysed for a suite of elements. Base metals, precious metals and uranium values were uniformly low.

Significantly, all holes show enrichment in vanadium with weak associated cobalt, nickel and barium values. Better vanadium intersections are shown below:

It is postulated that the vanadium is associated with magnetite. Vanidiferous magnetite occurs in many gabbroic bodies worldwide and is mined in South Africa and Russia. Vanadium is an essential element in the composition of certain types of specialised steel.

Further exploration will be required to determine
whether zones of higher magnetite content occur within the mafic gneisses. Any magnetite-rich zones could be expected to contain higher and possibly economic vanadium values. A detailed airborne magnetic survey is planned to determine targets for further drilling.

During 2008 exploration work on the tenement included:

• Acquisition of airborne EM data over the tenement using the Tempest system.
• Acquisition of gravity data over the western part of the tenement in conjunction with the NT government’s regional gravity program.
• Collection of water samples from six bores.

Following interpretation of the EM data, drilling may be undertaken by NuPower Resources for palaeochannel uranium deposits.