Spring Hill

Spring Hill is located in the Pine Creek Gold Field, 150 kms south of Darwin. The tenement package comprises an 1035 ha Mining Lease, ML23812,
surrounded by the 36 sq kms Exploration Licence, EL22957. Western Desert Resources Ltd has 100% interest in the tenements.

The project area is in the southern part of the Palaeoproterozoic to Mesoproterozoic Pine Creek Geosyncline, straddling a regional shear zone, the Pine Creek shear. The shear is related to a number of significant gold deposits in the region. The area has also been identified as prospective for tin mineralisation.
Exploration work completed on the EL and ML includes:

• Acquisition of SkyTEM airborne EM data over the EL area on 150 metre spaced flight lines.

• Purchase of Satellite imagery (Quickbird VHR) for the Spring Hill EL area.

• Office studies including database compilation, literature research, drill section output and planning for future drilling programs.

• The previous metallurgical testwork carried out by Ross Mining NL has been reviewed by Bemex Corporation.

Results from the SkyTEM EM survey were received in September. The survey defined one stand-out anomaly, a conductor one kilometre long adjacent to the old Horseshoe tin mine. Geologically, the conductor is located in the Koolpin Formation, which contains carbonaceous facies. The nature of the conductor and
possible associated mineralisation will be investigated by a program of geological mapping, surface sampling and drilling.

At the Spring Hill gold deposit a database was compiled containing all of the previous drilling information. Studies of the drill hole sections showed that the gold mineralisation was erratic and that higher grade zones could rarely be traced between section lines 25 metres apart.

Initial results from the metallurgical testwork by Ammtec indicate that the Bond ball mill work index is in the typical range for oxide gold ore and has a moderate value. The results also indicate that SAG milling could be considered as an option.

The proposed exploration programme for the Spring Hill gold deposit in 2008-2009 will include a scoping study covering the metallurgical and processing aspects of any development and further geological studies. Depending on the results of this work further exploration drilling may be undertaken.