Abydos Project

Background and Geology

The Abydos project comprises of two exploration licences which are both Mineral Rights Tenements, in the Pilbara region of Western Australia.  The project is considered prospective for ultramafic hosted nickel deposits associated with rocks of the Sulphur Springs group, which occur on these tenements.

The Abydos project is also prospective for Archaean lode gold deposits, VHMS base metal mineralization and tin-tantalum pegmatite hosted deposits.  There are several geological and geochemical targets worthy of additional assessment.

The tenements are currently being explored by Atlas Iron for iron ore in the Pincunah Greenstone Belt.

Historical mining in the area includes the Lynas Find goldfield (+140,000oz mined) and the Lallah Rookh Gold Mine (31,900oz mined). The eastern tenements of the group include rocks of the Sulphur Springs Group, which host the Sulphur Springs VHMS deposit (10mt @ 3.5% Zn and 1.5% Cu), just 8km to the east. Historical information shows the presence of multiple known occurrences of gold, base metals (copper-zinc-lead and silver), nickel and PGE anomalism across the tenements being acquired.

Location

The Abydos project lies approximately 110 kilometres south of Port Hedland, conveniently straddled by the Newman highway and Newman railway line. This area is extremely accessible by road and rail in close proximity to Port Hedland.

Recent Activity

Exploration results and sampling highlights include:

Active exploration programs were conducted at Abydos during 2008, focusing on copper-gold and base metal mineralisation trends identified in extensive historical exploration review.

• High grade rock chips up to 11% Cu, 54g/t Ag, 1.6g/t Au and soil samples up to 0.23% Zn, 0.14% Cu and 1.3g/t Au indicate extensive new copper-gold-base metal trend up to 21km in length.
• Infill soil sampling results with up to 0.1% zinc, received during the December 2008 Quarter confirm the presence and location of up to 4 excellent, large, discrete Zn-Cu-Ag-Au VHMS targets.
• Soil and rock chip sampling, as well as detailed geological mapping and alteration analysis has generated prospective targets for gold, copper-gold and zinc-copper suitable for drill testing.