Mt Malcolm Mines NL to provide a comprehensive review of historical exploration at the Emu Egg Prospect Area. The Prospect includes 22 PL's covering a contiguous area of 3,543 ha. Structurally controlled gold mineralisation is associated with significant quartz-carbonate±sericite alteration within sulphide bearing quartz veins that are emplaced along or close to sheared contact zones between tuffaceous volcanic units, Archean metasediments, mafic rocks and/or thin ultramafic horizons.

Numerous (+2 g/t Au) drill intercepts are documented in the database together with several old workings and numerous dry blowing occurrences. The Prospect is primarily viewed as being prospective for gold and base metals, its regarded as mature but underexplored. Drill target areas at Emu Egg and the nearby Emu Egg Main Zone Prospects are currently being finalised.

Historical databases (DB) including grid transformations and sampling/logging methodologies require some validation prior to targeting and drill testing, however the vast majority of the not-yet-completed but compiled DB is useable. No serious errors have emerged and identified anomalous gold trends are accurate. Geological interpretations have been refined and database consolidation is ongoing.

Several drill target areas that display anomalous gold-in-soil and positive historical drill results have been identified. Database construction and sourcing original geological data is progressing well. Consolidation of historical geological information and historical data is advancing satisfactorily and almost complete.

Emu Egg and Emu Egg Main Zone have been assessed and are drill test ready. Anomalous gold-in-soil values returned from geochemical soil sampling, has identified several large coherent (+20 ppb Au) anomalies and several areas that have not yet been drill tested or only subject to shallow RAB drilling. Numerous anomalous historical drill intersections remain open along strike and at depth.

Follow up investigation of identified historical gold mineralisation is lacking and, in many cases, never conducted. Several areas, such as the Emu Egg Prospect Area, present as walk-up drill targets where limited historical RC drill results returned: 6m @ 3.74 g/t Au (16-22m) incl. 2m @ 9.99 g/t Au in bm_RC22 and 18m @ 1.28 g/t Au (26-44m) incl.

2m @ 3.30 g/t Au and 2m @ 2.63 g/t Au in bm_RC30. Original RAB and RC drilling of surficial small workings at the Emu Egg Prospect Area (1988) initially returned encouraging results, however quality control appears to have been poor and drilling was orientated down dip with no record of formal chip logging (A23857). Positive intersections over the same area (1991) by others (A33555) are presented - bm_RAB, bm_RC, BRRC, EERC and BMRB series at Emu Egg and EE and BRRB series at Emu Egg Main Zone.

The strike extensions to Emu Egg and Emu Egg Main Zone have not been adequately drill tested. The holding is within 2km of the regional sub-parallel Keith Kilkenny Tectonic Zone (KKTZ). This generatively deformed mega-structure provides a favourable stratigraphic and structural setting for gold mineralisation where higher assay values appear spatially related to higher positive more prominent magnetic signatures and pronounced deformation zones within lithological contacts related sheared basalt, gabbro and mafic schist sequences.

A regional RAB drilling program, BRRB series, in and around Emu Egg was conducted in (2000-2001). The initial exploration was followed up with drilling at Emu Egg Main Zone (2004) (A57093). The RAB program returned peak composite drill intersections of: 4m @ 1.89 g/t Au (30-34m) in EE12 and 6m @ 0.90 g/t Au (18-24m) in EE59.

Gold mineralisation and structural extensions at Emu Egg and Emu Egg Main Zone remain open and are prospective along both the NW and SE strike directions and down dip. Historical drilling is regarded as shallow and incomplete. Follow up drilling confirming the mineralised halos and the magnetic high extensions is scheduled to commence in the near future.

Potential mineralisation has been delineated via +20ppb Au gold-insoil results, positive but limited RAB drilling and sub parallel high magnetic signatures. The extension zones require testing with deeper RC and air core drilling to close down the possibility of down plunge repetition of the boudin like lodes and to delineate any mineralised strike extensions. The anomalous gold values are spatially related to aero magnetically prominent high readings associated with elongate sills of sheared gabbro/dolerite.

The Emu Egg Prospect Area presents as a priority 2 gold target and Emu Egg Main Zone as a priority 1 target area. The northern and southern strike projections of both mineralised halos complement the magnetic high at Emu Egg Main Zone and the magnetic high-low boundary at Emu Egg. Strike extentions of both present as target zones.

Elsewhere numerous historical drill intersections and anomalous zones within the Emu Egg Prospect Area have not been followed up. Some wide spaced drill testing of the northern tenement group soil anomalies has been conducted with poor results; however apart from the five RCPW holes drilling is shallow. Previous exploration has identified weakly anomalous zones of +20ppb Au gold-insoil results (A47815) in the northern tenement group with follow up widely spaced but shallow RAB and 5 RC holes (A50520).

The RC drilling is regarded largely ineffective. The two scissor RC holes ending in gold mineralisation have not been followed up (A50783) however a sediment/porphyry has been identified. Significant but low tenor RC drill intersections evaluating the central +30ppb Au soil zone terminated in mineralisation.

Sericite pyrite mineralisation and silica alteration with quartz veining was detected in the bottom of both holes. Results included: RCPW001 3m @ 2.12 g/t Au (134-137m) EOH and RCPW005 1m @ 0.96 g/t Au (33-34m) and 1m @ 1.43 g/t Au (119-120m) EOH. In the southern group of tenements, although soil sampled, only small isolated anomalous spot samples were returned.

The historical surface sampling methodology over the Pig Well Graben sequence within the Emu Egg Prospect Area is regarded as inefficient. A veneer of recent alluvial and colluvial sediments masks the true bedrock response. The southern 7 tenements have been drill tested on only 11 drill lines (40 holes).

In the central areas, 3 central tenements have no soil geochemistry, nor any drilling conducted. The southern portion of the prospect is under explored.