Mountain Creek Joint Venture

The Roper Bar Iron ore Province includes the Mountain Creek project area just north-west of the Roper Bar project area. Mountain Creek consists of:

• EL 27143 (100% owned by Western Desert), covering 615 square kilometres
• EL25688, in joint venture with Tianda Resources (Australia) Pty Ltd and Western Desert acquiring 70% interest by spending $850,000 over three years.

Limited mapping and sampling was done on EL27143 in the 2009 field season after the tenement was granted in August 2009. Mapping shows the ‘Hells Gate hinge line’ extends from the Roper Bar project area into the Mountain Creek area. This is a major geological structure which has influenced the development of high grade hematitic iron ore mineralisation.

The prospective Sherwin Ironstone Member (SIM) extends from the Roper Bar project area into the Mountain Creek EL. Surface samples have reported assays in the range of 46 to 62% iron.

A detailed ground gravity survey in 2010 defined sites for drill testing. Drilling in 2010 indicates there is likely to be some high grade direct shipping ore (up to 66% Fe).

The area also has potential for base metal mineralisation.

On EL25688 geological mapping and sampling carried out in field seasons 2010-2011 identified enriched Sherwin Iron Member ore.  Drilling began in 2011 which has confirmed the presence of hematite mineralisation of beneficiable and direct shipping ore grade.

Drilling commenced in this area in 2010, when a brief campaign confirmed mineralised ironstone in the Mountain Creek area.