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WESTERN DESERT RESOURCES LIMITED ABN 48 122 301 848<br />

The Proterozoic terrain is considered to be highly<br />

prospective for a range of commodities including<br />

• Nickel-Copper sulphides +/- Platinum Group<br />

Element deposits like the giant Norilsk (>300mt)<br />

mine in Russia.<br />

• Lode gold deposits such as Telfer (150 tonnes Au).<br />

• High-grade unconformity style uranium deposits of<br />

the Alligator Rivers Uranium Field type e.g. Ranger.<br />

• IOCG deposits such as Ernest Henry (160mt @<br />

1.5% Cu, 0.5 g/t Au) and Warrego (1.6m ozs Au,<br />

90K tonnes Cu).<br />

All of the Musgraves project ground is Aboriginal<br />

Freehold, and discussions in respect of the ground<br />

under joint venture are at the negotiating phase of the<br />

ALRA process. It is hoped that initial meetings with<br />

the Traditional Owners will commence early in 2009.<br />

The other tenements have recently come out of the<br />

veto period, and applications for consent to grant are<br />

in the submission process.<br />

Tanami East<br />

This is one isolated tenement of 460 sq kms located<br />

in the Granites/Tanami Block of the Northern territory.<br />

It is a joint venture with TNG Ltd, whereby <strong>Western</strong><br />

<strong>Desert</strong> <strong>Resources</strong> Ltd can earn a 51% interest through<br />

spending $250,000 within 18 months, with the option<br />

to earn a further 29% interest by spending $500,000<br />

over 30 months.<br />

The area has been subject of very little exploration by<br />

past explorers. It is known to host significant malachite<br />

mineralisation outcropping over 1,200 metres. Elevated<br />

gold values were recorded from exploration in the 1970’s,<br />

and analysis of more recent government airborne<br />

geophysical data indicates the area is prospective for<br />

deposits of energy metals. It also has potential for<br />

deposits of the IOCGU type.<br />

Spring Hill Project<br />

Spring Hill is located in the Pine Creek Gold Field,<br />

150 kms south of Darwin. The tenement package<br />

comprises an 1035 ha Mining Lease, ML23812,<br />

surrounded by the 36 sq kms Exploration Licence,<br />

EL22957. <strong>Western</strong> <strong>Desert</strong> <strong>Resources</strong> Ltd has 100%<br />

interest in the tenements.<br />

The project area is in the southern part of the<br />

Palaeoproterozoic to Mesoproterozoic Pine Creek<br />

Geosyncline, straddling a regional shear zone, the<br />

Pine Creek shear. The shear is related to a<br />

number of significant gold deposits in the region.<br />

The area has also been identified as prospective<br />

for tin mineralisation.<br />

Exploration work completed on the EL and ML includes:<br />

• Acquisition of SkyTEM airborne EM data over the<br />

EL area on 150 metre spaced flight lines.<br />

• Purchase of Satellite imagery (Quickbird VHR) for<br />

the Spring Hill EL area.<br />

• Office studies including database compilation,<br />

literature research, drill section output and<br />

planning for future drilling programs.<br />

• The previous metallurgical testwork carried<br />

out by Ross Mining NL has been re<strong>view</strong>ed by<br />

Bemex Corporation.<br />

Results from the SkyTEM EM survey were received in<br />

September. The survey defined one stand-out anomaly,<br />

a conductor one kilometre long adjacent to the old<br />

Horseshoe tin mine. Geologically, the conductor is<br />

located in the Koolpin Formation, which contains<br />

carbonaceous facies. The nature of the conductor and<br />

possible associated mineralisation will be investigated<br />

by a program of geological mapping, surface sampling<br />

and drilling.<br />

The tenement is on Aboriginal Freehold, and discussions<br />

to commence negotiations for assembling an ALRA are<br />

under way by the tenement holders, TNG Ltd.<br />

17

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