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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 />
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