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Page 1 of WHITE HILLS PROJECT EPM 14409 White Hills Annual Report The 12 month period ending 2 nd August, 2008. Lucy H. Chapman Ozmin Resources Pty Ltd August, 2008

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WHITE HILLS PROJECT

EPM 14409 White Hills Annual Report

The 12 month period ending 2nd August, 2008.

Lucy H. Chapman Ozmin Resources Pty

Ltd August, 2008

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Contents

1.0 Introduction

2.0 Location, Access and Topography

3.0 Tenure

4.0 Previous Work

5.0 Current Work5.1 Geological Mapping5.2 Rock Chip Geochemistry5.3 Soil Geochemistry5.4 Geophysics

6.0 Summary

7.0 Further

Work References

Figures

1. EPM 14409 White Hills Project Location and Tenure Plan.2. EPM 14409 White Hills Project Land Tenure Plan illustrating the Area of

Exploration Focus.3. Simplified geological interpretation of EPM14409 White Hills Area of

Exploration Focus illustrating major prospects, select rock chip assay results and 5 ppb Au in soil contour.

Tables1. Assay results for select quartz vein material (outcrop and insitu float) and samples

taken along strike of veins in weakly veined limonitic shear zones.

Appendices

I. EPM 14409 White Hills Area of Exploration Focus 1:5000 scale Fact Map illustrating outcrop geology, grid outlines, rock chip and soil geochemistry results.

II. Summary of Geological Map Units.III. Rock Chip GeochemsitryIV. Soil GeochemistryV. Ground Magnetic Survey Report

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1.0 Introduction

Ozmin Resources Pty Ltd White Hills Project is located in the Bowen Hinterland, approximately 200km south of Townsville, in Central Queensland (Fig. 1). The project is situated in the northern reaches of the New England Orogen in the Connors Arch. The geological fabric of the area is a product of late orogenic felsic plutonism and NW-SE shear development spatially associated with gold mineralization during the Cretaceous (Gregory et al., 1961). Ozmin is targeting low tonnage, high grade or moderate to high tonnage, low grade Au mineralization hosted by quartz-sulphide veins in the area.

2.0 Location, Access and Topography

The EPM is located approximately 30km south of Bowen, on the Bowen 1:100,000 Sheet 8557. The tenement falls on the Mount McGuire 1:25,000 topographic/orthophoto base maps, predominantly within the Shire of Bowen.

Access to the northeastern boundary of the EPM is from the Bruce Highway at Longford Creek siding, 35km north of Proserpine. A well maintained station road (Gordon Glen Road) runs westerly along Eden Lassie Creek on Mount Challenger Station for approximately 8 km. Access to the north-west is from the Bruce Highway southerly along Roma Peak Road for approximately 15km to Milwarpa Station (Fig. 3) .

The tenement covers both gently undulating open-forested areas and steep heavily timbered hills. It is utilized predominantly for cattle grazing.

3.0 Tenure

EPM 14409 was granted on 3rd August 2005 for a period of five years to L.P. Gray. The EPM was assigned to Ozmin Resources Pty Ltd on 18 th August, 2006. The tenement falls within the Clermont Block Identification Map, and is described as follows:-

Blocks Sub-blocks267 k268 b c d e f g h j k l m n o p q r s t u Total sub-blocks – 19.

Partial relinquishment of 9 sub-blocks was undertaken in accord with government regulation in July 2008 and included;

Blocks Sub-blocks267 k268 b c d e h k p uTotal sub-blocks – 9.

This report includes work done on the 19 sub-blocks (Figs 1 and 4).

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The Standard Environmental Authority is MIM500385205 and Native Title Party the Gia people; determination GIA QUD 60233/99 (QC99/24).

4.0 Previous Exploration

Prospect-scale exploration relevant to the current holding of Ozmin was undertaken by Buddha Gold Mines N.L. from 1979, and later in JV with Homestake Gold. Geochemical stream sediment sampling, utilizing panned heavy mineral concentrates from first order streams, identified some anomalous base metals (Obial, 1982). Follow-up rock chip sampling was undertaken at the White Hill, Red Ridge, Crazy Cat and Golden Gusher Prospects. No further exploration was undertaken by Buddha Gold Mines NL.

Julia Gold NL and subsequently Keela-Wee Exploration under ATP 4679 Mount Pluto undertook an exploration program including stream sediment and rock chip sampling, trenching, and drilling. A synthesis of all results, incorporating the work of Buddha Gold Mines NL, is presented in Lesh (1988) and Pretorius (1990), and previously discussed (Chapman, 2007).

5.0 Current Exploration

The objective of exploration undertaken by Ozmin Resources in Year 3 of Tenure was to refine our understanding of the nature and geological setting of gold mineralization in an area of approximate 5 km2 characterized by relative high density of Au-bearing quartz veining.Work undertaken included 1:2000 scale geological mapping augmented by rock chip sampling, ground magnetometry interpretation and soil geochemical surveying (Fig. 2, Appendix I).

5.1 Geological Mapping

A 2.2 x 2.8 km area encompassing prioritized lines of lode within the coordinates of 7756800 to 775400mN and 633800 to 636000mE, was mapped at 1:2000 scale. Geological map units are described in Appendix II. The area is characterized by a large central carboniferous diorite body (Cud – undifferentiated intrusive suite of Gregory et al., 1961) that is interpreted as a roof pendant (Weil and Butera, 2006). It is enveloped by Cretaceous felsic units of (Kgh- Hecate Granite of Gregory et al., 1961). Lines of Lode lie along NW-SE interpreted shear zones that subparallel the central diorite roof pendant (Appendix I).

Mineralization

At prospect scale, quartz veins pinch and swell over 10 to 100 metres in length at surface, and lines of lode extend for up to 3 km. Veins vary in thickness from several centimetres and up to 5m. Veins are characterized by centimetre to metre-scale alteration selvages with 1 to 5% fine- to coarse-grained, disseminated pyrite (rare chalcopyrite) and sericite alteration.Silicification accompanying stockwork veining and brecciation of host rocks is also typical.

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Au-bearing veins are typically lined by milky quartz, euhedral megacrystic quartz followed by coarse-grained sulphide (limonitic material, boxwork after sulphide). Sulphide minerals observed in outcrop include pyrite, galena, sphalerite and chalcopyrite.

5.2 Rock Chip Geochemistry

A total of 91 rock chip samples were analysed for Au, base metals, major and trace elements by Fire Assay (AuAA26) and ICP Mass Spectometry (MEICP41S) at ALS Townsville and Brisbane Laboratories. The samples included lode quartz vein and shear zone material and representative samples of altered- and unaltered host rock (Appendices I, II, III). A selection of results for vein and shear zone are presented in Table 1.

Prospect_Code

SheetNumber Sample GDA94_East GDA94_North Ag_ppm Au_ppm Cu_ppm Pb_ppm Zn_ppm

Quartz vein materialWHI 8557 P166504 635777 7755171 52.4 8.6 1530 1830 1130WHI 8557 P166505 635296 7756571 28.2 0.15 36 1780 9340WHI 8557 P166516 635819 7755506 3.1 6.17 159 317 171WHI 8557 P166527 634272 7755163 19.4 34.3 107 52 38WHI 8557 P802715 635051 7754120 1.8 1.78 150 89 21WHI 8557 P802716 635054 7754159 2 3.4 163 156 265WHI 8557 P802719 634365 7754786 11.2 8.72 781 480 1790WHI 8557 P802720 634365 7754782 6.2 3.71 170 151 445WHI 8557 P802723 635487 7755290 46.5 0.38 1320 246 362WHI 8557 P802726 635068 7754157 8.4 5.32 387 459 160WHI 8557 P802727 635080 7754155 0.7 2.73 647 95 249WHI 8557 P802737 634468 7754895 1.3 2.27 244 290 73WHI 8557 P802749 634027 7755463 0.8 0.85 25 23 12WHI 8557 P802750 634145 7755217 2.4 5.02 130 73 33WHI 8557 P802751 635577 7755286 0.6 0.45 45 52 114WHI 8557 P802752 635506 7755312 27.9 0.95 333 758 31WHI 8557 P802753 635499 7755231 22.7 0.3 337 27 71WHI 8557 P802754 635479 7755176 252 14.65 220 2310 43WHI 8557 P802755 635520 7755068 14.6 0.68 677 37 130WHI 8557 P802756 635460 7755171 4.4 0.31 91 9 8WHI 8557 P802760 635247 7755596 85.2 0.1 13 214 49

Limonitic ShearWHI 8557 P802717 634622 7754451 3.9 4.64 1450 622 443WHI 8557 P802718 634462 7754362 0.7 1.18 201 46 21

Table 1. Assay results for select quartz vein material (outcrop and insitu float) and samples taken along strike of veins in weakly veined limonitic shear zones.

5.3 Soil Geochemistry

Three soil geochemical surveys were conducted from August 2007 to June 2008 in order to compliment geological mapping and refine the location of potential drill targets.

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Method

Orientation Survey

This survey was centred upon a NW-SE base line across the Red Ridge line of lode. This line of lode was selected for the;

absence of vein outcrop or sub-crop at surface known presence of a Au-mineralized vein from surface mullock adjacent to pits

at surface vein intersections in the shallow subsurface intersected in costeans and

drilling (Pretorius 1990).

A total of 42, approximately 300g samples were collected at 25m spacing along 6 lines spaced 50m apart. Material was sieved to less than or equal to 1/8th inch.

Region and Infill Surveys

A total of 505 samples were collected along a W-E trending grid at 100m sample- and line- spacing. Two coherent anomalous Au zones (> 10ppb Au) were mapped out and centred upon the Golden Gusher and White Hill prospects. Further infill soil geochemical sampling collected 147 samples at 100x100m samples to refine our understanding of the anomaly. The infill grid was off-set from the main grid to produce a 100m x 50m sampling density.

All samples were pulverized to 75 microns and analysed for Au, base metals, and major and trace elements at ALS laboratories in Townsville and Brisbane using fire assay (Au-AA22) and ICP mass spectrometry (ME-ICP41). A further 9 duplicate samples and triplicate samples at 80 micron grain size were submitted for quality control.

Results

Coherent 5 ppb anomalous zones define the Golden Gusher-Crazy Cat-Red Ridge and White Hill (south) lines of lode and are spatially coincident but not exclusive to zones of past prospecting and exploration. Soil results across veined zones in the north-eastern portion of the survey area (encompassing Eden Lassie) exhibit minor spot anomalies but are otherwise typified by low to zero Au soil responses.

The Golden Gusher-Red Ridge anomalous zone is approximately 850m long and 450m in width. Quartz vein float and outcrop is scattered and sparse in this area despite historical diggings; outcrop is best exposed in deeply incised creek beds. Isolated spot-like anomalies define the south-east extension of this anomalous zone, and correlate with the Mineral Hill prospect and predicted continuity of Red Ridge.

The White Hills anomaly is approximately 500m x 300m in dimension. The area of this anomaly is distinguished by disturbed ground on a moderate to steep slope scattered with quartz vein float. The southern extent of the anomaly is suspected to be a product of down- slope Au dispersement.

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5.4 Geophysics

Ozmin Resources contracted Terra Search Pty Ltd to undertake a 100m-line spaced ground magnetic survey over an area of 4.67 km2 with a total of 48.3 line kilometers. The survey was undertaken in June-July of 2007 (Chapman, 2007) and reported in August 2007. Magnetic lineament interpretation has been integrated with geological mapping (Appendix I).

6.0 Summary

The objective of exploration in Year 3 of Tenure at EPM 14409 White Hills Project was to refine our understanding of the nature and geological setting of Au mineralization in a 5 km2 area of exploration focus characterized by a high density of Au-bearing quartz veins. Work completed included;

1:2000 scale geological mapping. Rock Chip sampling of veins and host rock totaling 91 samples. Soil geochemical surveying involving the collection of 707 samples. 42-line km ground magnetometer survey

Ozmin has outlined anomalous Au regions in the vicinity of Golden Gusher and Red Ridge that have not been previously drill tested.

Further Work

The main work priority in relation to EPM 14409 is to define and drill test the continuity and grade of the Au-mineralized quartz vein lodes at Golden Gusher and Red Ridge.

References

Chapman, L.H., 2007. EPM 14409 White Hills Annual Report for the 12 month period ending 2nd August, 2007. Ozmin Resources Pty Ltd Company Report (open file), Queensland Department of Mines and Energy.

Gregory C.M., Malone, E. J., Jensen, A. R., Paine, A. G. L., Olgers, F., 1961. Australian 1:250, 000 Geological Series, Bowen, Queensland Map Sheet SF 55-3. Geological Survey of Queensland.

Lesh, R. H., 1988. A to P 4679M Mt Pluto six monthly report for the period ending 31 March 1988, Company Report # 19015, Queensland Department of Mining and Energy.

Obial, R. C., 1982. Geochemical survey for gold in the Proserpine area, Queensland. Buddha Gold Mines N.L. Company Report #11476, Queensland Department of Mines and Energy.

Pretorious, L.E., 1990. Keela-Wee Exploration Ltd ATP 4679M Pluto combined six monthly and final report, 4.10.89, Company Report #21094, Queensland Department of mIning and Energy.

Weil, J., and Butera, K., 2006. EPM 14409 “White Hills”, First Annual Report for the 12 month period ending 2nd August, 2006. Ozmin Company Report, 20p.

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Figure 1. White Hills Location and Tenure Plan.

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Figure 2. White Hills Land Tenure Plan and Area of Exploration Focus.

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Appendix II

EPM 14409 White Hills Geological Map Units

Plutonic Rocks

Biotite Granodiorite (Gdi)Fine- to medium-grained and granular biotite ± magnetite granodiorite is the dominant felsic rock type and forms boulderous piles and hills in the region, typified along the White Hills line of lode.

Biotite Microgranite (Mgr-b)Fine-grained granular quartz-chlorite-magnetite microgranodioriteThe rock has a fine-grained granular and quartz-rich groundmass with <1% feldspar phenocrysts.

Miarolitic Microgranite (Mgr-m)Cream-grey –coloured microgranite with quartz-feldspar-biotite filled miarolitic cavities forms the peak at White Hills east and host rock to Au-bearing quartz veins at the central eastern map boundary.

Pink GraniteMedium-grained biotite-K-feldspar granite forms the dominant rock type and host rock to mineralization in the western portion of the map area. It is locally intruded by cm-wide, and apparently randomly oriented Microgranite (Mgr-p) dykes and pods.

Medium to coarse-grained Diorite (Di)Coarse-grained diorite outcrop is variably preserved in major creeks. Outcrop is restricted elsewhere. Weathering of diorite has resulted in the development of rich ochre red soils as observed along the line of lode at Red Ridge. Xenoliths of this material in granodiorite are observed in outcrop in Eden Lassie Creek to the west of Eden Lassie.

Intrusion Breccia (Ibx)Clast-supported igneous breccia distinguished by 50cm to 5m fragments (xenoliths) of predominantly diorite in a microgranite matrix developed at the contact between biotite granodiorite and diorite in Crinoline Creek.

Intrusive RocksBlue-green Dolerite (Ibg)Outcrops of this unit vary in width from 50cm and up to 5m. It sporadically crops out as low relief occurrences over 10’s of metres. Very fine-grained pyrite occurs in trace proportions.

Porphyritic Andesite (Ian-f)Less common but spatially associated with Dolerite, and characterized by coarse- to very coarse-grained, zoned euhedral phenocrysts (up to 20%) in a microcrystalline groundmass.

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Veins and Alteration

Quartz–gold-pyrite-chalcopyrite-galena-sericiteVeins vary in thickness from 2 cm to 5m wide and exhibit moderate to steep angles of dip. They are characterized by both blocky and crustiform generations of quartz infill. Fine to coarse-grained sulphide occurs as infill in veins after euhedral quartz late in the vein paragenesis. Silicification and sericite alteration of feldpars in wall rock is commonly observed adjacent to veins and may be associated with up to a few % cubic pyrite euhedra ± chalcopyrite disseminations and aggregates.

Quartz-sericite±epidote±chlorite± pink feldspar ± magnetite veins and alterationEpidote-chlorite-sericite occur in varying proportions as pervasive, and texturally retentive alteration of biotite, hornblende and feldspar over 10’s to 100’s m in fine and coarse-grained mafic and felsic units. It varies in abundance from minor to up to 80 modal % and more widely developed in mafic units. It also occurs as pod-like alteration zones at cm-scale in mafic rocks, where it is characterized by epidote-rich cores and is commonly developed at a cm-scale as selvage to cm-thick Quartz-sericite±epidote±chlorite± pink feldspar ± magnetite veins that occur as fine stockwork or sheeted vein arrays.

Calcite ± magnetite ± pyrite ± dark green chlorite veinsVeins are typically 1 to 5 mm-thick and occur in planar, cm-spaced vein networks. Calcite is the most common infill. Chlorite occurs as fine-grained alteration adjacent to the veins.

Shear Zones (SZ)

Three styles of shear zone have been differentiated on the basis of mineralogy and include limonitic, phyllitic and siliceous.

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Terra Search Pty LtdA.B.N. 59 011 073 939Specialists in Mineral Exploration: Geology and Computing

GROUND MAGNETIC SURVEY: WHITE HILLS31 km Northwest of Proserpine, North Queensland.

SURVEY COMPLETED FOR OZMIN RESOURCES.Field data collected June-July 2007.

Processing and Modelling Terra Search Pty. Ltd.

Geophysicist/Ground Magnetic Operator: Lee Tasker MSc Physics, GradDipSc. Geophysics

Ground Magnetic Operators:Lachlan Clair Daniel Hatton

Data/GIS Processors:Tim Beams BSc (Hons) Physics Rob

Lewis BSc (Hons) Geology

Terra Search Pty LtdFor Ozmin Resources Pty Ltd

Document # OZM2007002 TS Shelf Ref # 2007/015

Townsville August 2007

Townsville Perth

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PO Box 981, Hyde Park QLD 4812 PO Box 2016, Carlisle North WA 6101 21 Keane Street, Currajong QLD 4812 12/120 Briggs Street, Welshpool WA 6106Phone: (07) 4728 6851 Fax: (07) 4728 6854 Phone: (08) 9472 8546 Fax: (08) 9472 8548

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Ground Magnetic Survey for Ozmin Resources, White Hills Project, June-July 2007 1

1. Survey Overview Client: Ozmin Resources Survey Date: June-July 2007Data Processed and Delivered: August 2007Tenements: EPM 14409

PurposeOzmin Resources contracted Terra Search Pty Ltd to undertake a ground magnetic survey within their tenement

EPM 14409 “White Hills” in the Connors Arch area to provide detailed magnetic coverage of a magnetic anomaly shown in aeromagnetic images.

LocationThe survey area is located 31 km by road northwest of the central Queensland coastal town of Proserpine. A

location map is provided in Figure 1. Figure 2 shows the survey area in relation to regional aeromagnetic features. Figure 3 shows the ground magnetic survey lines proposed by Ozmin.

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Terra Search Pty Ltd for Ozmin Resources Pty Ltd

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OZMWH0004_WhiteHills_AeroMagnetics.WOR

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Ground Magnetic Survey for Ozmin Resources, White Hills Project, June-July 2007 5

2. General Survey Details and Procedure Field Collection

The ground magnetic survey was undertaken using a GSM-19 Overhauser walking magnetometer. The GSM-19 has onboard GPS receiver and automatic data logging. A magnetic reading was recorded every 2 seconds for this survey. In the GEMSYS system all locations are collected as UTM coordinates in reference to the WGS84 datum, and in the case of the White Hills survey, in the MGA Zone 55 projection.

A magnetic base station was established using a Geoinstrument G856 Proton Precession magnetometer cycling every 30 seconds. This allows for the correction of the temporal variation of the Earth’s magnetic field caused by variable effects related to such factors as fluctuating solar radiation. The Base Station was set up in a magnetically quiet area away from any obvious magnetic interference, e.g. building, power lines, roads, etc.

While undertaking the survey, both surveyors were clean of any material that would cause any magnetic interference. The magnetometer was turned off when in range of fences. Surveying near obvious magnetic obstacles such as old metal drums etc., was avoided.

The ground magnetic survey was commenced on the 16th June 2007 by Terra Search Geophysicist Lee Tasker and Field Assistant Lachlan Clair. Unseasonal rain forced the survey to be abandoned on the 17th June, with only 14 of the 29 proposed survey lines completed. The 15 remaining survey lines were collected on the 6th July 2007 by Terra Search Geologist Daniel Hatton and Field Assistant Lachlan Clair.

The survey grid had 29 lines running east – west from approximately 1.4km to 2.1km in length with 100m spacing between lines (covering 2.8km north-south), giving a total distance of 48.3 line-km over an area of 4.67km2. While walking, line guidance provided by the in-built GPS system of the walking magnetometer.

ProcessingLee Tasker and Daniel Hatton performed preliminary field processing of the survey data. Final processing,

quality control and assurance, and presentation of the data were performed by Tim Beams in Terra Search’s Townsville office with the assistance of Rob Lewis. The raw field data was diurnally corrected and the two survey periods (15/06 - 17/06 and 05/07 - 06/07) levelled to one standard datum. Suspect data points were removed before gridding and imaging. Details of the processing are found in Appendix 1.

The levelled magnetic intensity and elevation data was gridded and imaged using Geosoft (Oasis Montaj) software. A reduction to pole filter was applied to the gridded Total Magnetic Intensity (TMI) data to produce a Reduced to Pole (RTP) grid. The Earth’s magnetic field is inclined at increasingly low angles as move towards the equator. This has the effect of pushing the anomaly shown in the TMI away from the source. The RTP filter is an attempt to correct for this inclination and place the magnetic anomaly directly above its source. The declination (with respect to grid north) and dip of the prevailing magnetic field in the area are needed as parameters for the reduction to pole filter. These were obtained using the Geomagix program with the 2005 IGRF model and the appropriate survey date and elevation.

The Geosoft grids were exported as MapInfo registered raster (.tif) files. The Geosoft grids were also converted to ERMapper format to provide an alternative format for further presentation. The imaged grids were also exported as projected MapInfo raster files.

Figure 4 shows the location of the reading stations in relation to the proposed survey lines. The northwest corner of the proposed grid was avoided as it overlapped the state forest. Figures 5, 6, and 7 show images of the gridded digital elevation model (DEM), total magnetic intensity (TMI) and reduced to pole magnetic intensity (RTP), respectively. Figure8 is a comparison between the ground survey TMI and the regional Geoscience Australia Ayr – St. Lawrence aeromagnetic survey (P796).

Broadly speaking the northwest trending elliptical aeromagnetic high is present in the groundmag survey. However more detailed structural trends are shown in the groundmagnetics. The southern margin is curvilinear. The northern

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margin is linear and trends east-west. The sharp boundary suggests a probable fault. Curvilinear troughs parallel the margins of the magnetic high both internally and externally. These troughs are strongly developed in the TMI image, but the RTP

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Ground Magnetic Survey for Ozmin Resources, White Hills Project, June-July 2007 6

processing reduces their impact. The overall shape of the anomaly closely matches that of the Carboniferous Bulgonunna Volcanics mapped in the Bowen 250k sheet geology.

The magnetic high continues as a northwest trending extension. In the northern part of the survey strong north and northnortheast trending linear magnetic highs occur, which in all probability are thin tabular dykes.

In terms of the relationship between the ground magnetics and the observed mineralisation, there appears to be a correlation between the Golden Gusher, Crazy Cat and Red Ridge lines and the central RTP low (fault?) which divides the main anomaly. Several small historical workings appear to be associated with the northnortheast trending linear feature (dyke?) in the north of the survey.

Location specifications and reduction to pole parameters for the survey are:

Coordinate System: Field Collection: Datum: GDA94Projection: MGA Zone 55

Coordinate System: Imaging & Presentation: Datum: GDA94Projection: MGA Zone 55

Base Station: 0635353mE/ 7756800mN Control Point: 0635366mE/ 7756804mN Grid: 7756900mN – 7754100mN

0633800mE – 0635900mE Declination: 8.7559 Dip: -49.5701

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◆ Raw Field Station

◆ Station Retained after Processing

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Page 233 of

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Page 241 of

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Page 242 of

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Page 244 of

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Page 245 of

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((((((((((((((((((((((((((((((((((((((((((( (((((((((((((((((((

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((((((((( ((

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◆ (((((( ( ((((((((((((((((((((((((((((((((((((((((((((((((((

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((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

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((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

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(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( (((( ((((((((((((((((((((((((((((((

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((((((( (((((((((((((((

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(((((

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Page 354 of

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((((((

(((((((((((((((((((((((((((((((((((((((((((((((((((((((( (((((((

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Page 356 of

( (( (

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Page 357 of

( (

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((

((((

Page 358 of

(( ( ((

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Page 359 of

(((((((((((((((((((((((((((((((((((((((((((((((

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((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

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((((((((((((((((((((((((((((((((((((((((((((((((((((

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(( (((((((((((((((((((((((((((((((((

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Page 364 of

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( (((((((((((((( (((((((((((((((((((

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Page 365 of

(((((((((((((((((( (

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((((((((((((((((((((((((((((((((((((((((((((((((((((

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Page 367 of

◆◆ ( ((((((

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Page 368 of

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Page 369 of

((((((((((((( ((((((((((((((((((((((( (( (( ((((

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((((((((((((((((((((((((((((((((((((( (((((((((((((((((((((((((((((((((((((((( (( (( ((

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Page 372 of

◆◆((((((((((((((((((

(( (( ((( ((((((((((((((((((((( (((((((((((((((((

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◆(((((((((((((( ( (((((((((( (((((((((((((((((((((((((((((((((((((((((((

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((((((

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( ((((((((((((((((((((((((((((((( (((

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◆◆ ((((((((((((((((((((((((((((( ((

((

(((((((((((((((((((((((((((((((((((((((((((((((((((((((((

((((((((((((((((((((((((((

(( (((((

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Page 379 of

(((

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Page 380 of

(((((( ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

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(

Page 381 of

(( (((((((((((( (

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Page 382 of

(((((((((((((((((((((((((((((((((((((((((((((( ( ( (

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((((((((((((

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Page 385 of

(((((((((((((((((((((((((((

((

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Page 386 of

( ( (((((

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Page 387 of

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Page 388 of

(((((((((((((((((((((((((((((

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Page 389 of

(( ( ( (((((((((((((((((((((((((((((((((

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Page 390 of

(((((((((((((( (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

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Page 391 of

((((((((((((((((((

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Page 392 of

( (((((((((

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Page 393 of

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(((((((((((((((((((((((((((((((((

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Page 395 of

((((((((((((((( (

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Page 396 of

(((((((((((( ((

((

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( (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

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Page 399 of

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( (( (((((((((((((( ((((((((((((((((((( ( ((

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Page 400 of

(( ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

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Page 401 of

(

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Page 402 of

(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

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Page 403 of

(((((((((((((((((((((((((((( (((((((((((((((((((((((((((((((((((((((((((((((

((((((

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(( ( ( (

Page 404 of

(((

((((((((((

((((

((((

((((((

((((((((((((

( ((( ( ( ◆◆(((( ((((((( ((((

(((((((((((((((((((((((((( (( (((((((((((((((((((((((((((((((((

(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

(((((((((

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Page 405 of

((((((((((( (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

Page 415: Microsoft Word - … · Web view3.0 Tenure EPM 14409 was granted on 3rd August 2005 for a period of five years to L.P. Gray. The EPM was assigned to Ozmin Resources Pty Ltd on 18

Page 406 of

(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( ((((((((((((((((((((((((((((( ((((((((((((((

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Page 407 of

((((((((((((((((((((((((((((((((((

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Page 408 of

((((

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Page 409 of

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Page 410 of

((((( (

((((((( (( (((((

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Page 411 of

((((((((( (( ((((((((( ((

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Page 412 of

( ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( (((((((((((((((((((

(( (

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Page 413 of

(( (( (

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Page 414 of

(( (((((((((((((((

((((((((((((((((((((((((((( ((

((((((((((( ((((((((((((((((

(((((((((((((((((((((((((((((

((((((((((((((((((((((((((((((((((((((((((((((((((

((((((((((((((((((((((((

(((((((((((((((((

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Page 415 of

77540007754000 mNmN

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Page 416 of

◆◆ (( ((

(((((((( (

((

((((((((((((((((((((((

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Page 417 of

((((

((((((( (((((((((((((((((((((((((( (( (( ((

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Page 418 of

77530007753000 mNmN

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Page 419 of

FIGURE 4

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Page 420 of

Terra Search Pty Ltd 10/8/2007

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Page 421 of

Ozmin

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Page 422 of

Resources

White Hills Project EPM14409 "White Hills" Ground Magnetic Stations

July 2007

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Page 423 of

0 1

Kilometers 1:25,000MGA Zone 55 (GDA94)

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OZMWH0009_WhiteHills_GMag_Stations.WOR

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7758000 mN

7757000 mN

7756000 mN

7755000 mN

7754000 mN

7753000 mN

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6340

0063

4000

mE

mE

6350

00 m

E

6360

0063

6000

mE

mE

Page 426 of

FIGURE 5

Terra Search Pty Ltd 10/8/2007

Ozmin Resources White Hills Project

EPM14409 "White Hills" Drainage over DEMJuly 2007

0 1

Kilometers 1:25,000MGA Zone 55 (GDA94)

OZMWH0010_WhiteHills_GMag_DEM.WOR

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7758000 mN

7757000 mN

7756000 mN

7755000 mN

7754000 mN

7753000 mN

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6340

0063

4000

mE

mE

6350

00 m

E

6360

0063

6000

mE

mE

Page 428 of

FIGURE 6

Terra Search Pty Ltd 10/8/2007

Ozmin Resources White Hills Project

EPM14409 "White Hills" TMI Ground Magnetics

July 20070 1

Kilometers 1:25,000MGA Zone 55 (GDA94)

OZMWH0005_WhiteHills_GMag_TMI.WOR

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7758000 mN

7757000 mN

7756000 mN

7755000 mN

7754000 mN

7753000 mN

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6340

0063

4000

mE

mE

6350

00 m

E

6360

0063

6000

mE

mE

Page 430 of

FIGURE 7

Terra Search Pty Ltd 10/8/2007

Ozmin Resources White Hills Project

EPM14409 "White Hills" RTP Ground Magnetics

July 20070 1

Kilometers 1:25,000MGA Zone 55 (GDA94)

OZMWH0006_WhiteHills_GMag_RTP.WOR

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Page 431 of

Reading Lines63.081 Line km 29,107 Data Points

TMI Aero Magnetics (P0796_Ayr_StLawrence) TMI Ground Magnetics

Terra Search Pty Ltd 10/8/2007

0 1

Kilometers 1:25,000

MGA Zone 55 (GDA94)

6340

0063

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Page 432 of

FIGURE 8

Ozmi

n Resources White Hills

Project

EPM14409 "White Hills" Magnetics

July 2007

OZMWH0002_WhiteHills_Magnetics.WOR

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Page 433 of

Ground Magnetic Survey for Ozmin Resources, White Hills Project, June-July 2007 12

4. Data Delivery Data is presented on the accompanying CD. It consists of :

GEMSYS raw field data and G856 base station raw data for each day of the survey.

The quality assured, leveled data in both ascii (.csv) and geosoft database (.gdb) formats.

Gridded TMI, RTP and DEM data in both Geosoft grid (.grd) and ERMapper (.ers) formats.

Registered MapInfo raster (.tab) TMI, RTP and DEM images.

Adobe Acrobat (.pdf) versions of the report figures are also supplied in the Images directory as well as a copy of this report.

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Page 434 of

Ground Magnetic Survey for Ozmin Resources, White Hills Project, June-July 2007

Appendix 1: Processing Details

The first step in processing was to examine the base station data for any possible erroneous readings. Inspection of the data showed several issues requiring attention. Firstly, there were short periods at the start and end of each working day when the base station data appeared to be unnaturally influenced. These periods (15/06 22:00:09 – 22:07:09; 16/06 04:59:39 – 05:03:09; 16/06 22:00:08 – 22:03:08; 17/06 06:16:08 – 06:20:08; 05/07 21:41:13 – 21:46:43,06/07 06:48:43 – 06:51:13) coincide with the times when the field crew was in the vicinity of the base station; i.e. while taking control point readings and during set-up and pack-up of the base station. It seems obvious that the presence of the field crew was causing the base station to behave erratically. The cause of this influence is suspected to be the field’s crew vehicle parked too close in the first instance (15/06 – 17/06) and the mutual interference between the base and survey magnetometers in the second (05/07 – 06/07).

As a check on the local base station data, the Charters Towers geomagnetic observatory (CTA) data for the period of the survey was downloaded from the Geoscience Australia website. Figures A.1, A.2, and A.3 show the base station data for both the Charters Towers and White Hills base stations for the three survey days. Apart from the short periods mentioned above the correlation between the CTA data and the local base station is excellent. This correlation is used as the basis of determining rogue readings from the local base station.

Another thing obvious from Figures A.1, A.2, and A.3 is that the two survey periods (15/06 - 17/06 and 05/07 - 06/07) have different mean values for the field at the base station. Upon the field crew’s assurance that the base station was at the same position for both periods, we have assumed that this difference is probably due to poor calibration (tuning) of the base station magnetometers. It appears however that it is only the magnitude of the field which has been affected, since both sets display consistent variations about their respective mean values compared to the Charters Towers data.

Rogue base stations readings were identified by looking for large discontinuous ‘steps’ in the difference between the local White Hills and the Charters Towers data. In addition to the readings at the start and end of each day, two isolated points (15/06 22:22:39 and 17/06 01:34:38) were considered spurious, and these points were removed before the base station data was used for diurnal correction of the survey data.

The Gemsys unit provides a signal quality (QA) value for each reading recorded. Points with QA less than the maximum value of 99 were removed. Diurnal corrections were applied separately to each of the two survey periods using the local White Hills base station for each period with the rogue points removed. The diurnal correction amounts to an algebraic shift of the field data based on the difference between the base station at the time of the field reading and a base level for that survey. The base level chosen for each survey was the base station value at the time of the first survey reading (excluding control points). These were 49538.63nT at 15/06 22:50:44 and 49569.80nT at 05/07 22:09:54 respectively.

The two survey periods were levelled to one standard datum. Due to the suspect difference between the mean magnetic intensities of the local base station for the two survey periods, the levelling shift was determined instead using the difference between the CTA base station value at the start of each period. The Charters Towers base station magnetic field intensity was 49249.32nT at 15/06 22:50:44 and 49245.00nT at 05/07 22:09:54 resulting in a level shift of 4.32nT for the second survey.

The control points, which fell outside the good local base station time window, were diurnally corrected using the Charters Towers (CTA) base station. This provided a check on the validity of using the Charters Towers base to level the separate surveys. In total 76 control point readings were taken. The precision of these reading is represented by their standard deviation of 3.3nT. This is considered to be quite small, indicating that a fair degree of confidence can be placed in the levelling process adopted above. Indeed, the standard deviation of the control points is probably inflated due to mutual interference between the base station and survey magnetometers. Table A.1 shows a full set of statistics for the control point readings.

Suspect field data points were removed. This involved first removing points where no time increment was recorded due to poor GPS signal preventing synchronization with satellites. Following this, points with anomalous gradients, determined between a data point and its immediate neighbours, in the elevation, magnetic intensity or horizontal distance,

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Page 435 of

were removed. These criteria were chosen because anomalous gradients in the elevation and horizontal distance between points are invariably caused by erroneous GPS readings, and there are usually some anomalous magnetic intensity

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Page 436 of

Ground Magnetic Survey for Ozmin Resources, White Hills Project, June-July 2007

readings which are not physically realistic. After the removal of these points, the gradients were recalculated, and points with anomalous gradients (using twice the standard deviation of the original dataset as the threshold) were also removed. This process was repeated until no anomalous gradients remained in the data.

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Charters Towers F (nT) White Hills F (nT)Rogue White Hills F (nT)

Figure A.1: Base Station Data for 16/06/2007 AEST

49270.0

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Time (UTC)

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ills

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Charters Towers F (nT) White Hills F (nT)Rogue White Hills F (nT)

Figure A.2: Base Station Data for 17/06/2007 AEST

49270.0

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ills

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Charters Towers F (nT) White Hills F (nT)Rogue White Hills F (nT)

Figure A.3: Base Station Data for 06/07/2007 AEST

49270.0

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Time (UTC)

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ower

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(nT

)

Whi

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ills

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Page 440 of

Table A.1: Control Point Statistics

Control Point All Group Group Group GroupStatistics 1 2 3 4

Start 15/06/07 22:01:36 15/06/07 22:01:36 16/06/07 05:02:36 16/06/07 22:01:18 17/06/07 06:19:06 05/07/07 21:42:56End 06/07/07 06:51:04 15/06/07 22:02:14 16/06/07 05:02:52 16/06/07 22:01:34 17/06/07 06:19:28 05/07/07 21:43:34

No. Points 76 20 9 9 12

Mag_Lev Mean 49448.78 49447.51 49444.60 49454.77 49448.95

Standard Deviation 3.34 1.38 0.21 0.23 0.08Max 49455.21 49449.85 49444.98 49455.14 49449.10Min 49442.52 49442.52 49444.34 49454.41 49448.82

Mean + 2 StDev 49455.46 49450.27 49445.03 49455.23 49449.11Mean - 2 StDev 49442.09 49444.75 49444.17 49454.30 49448.79

Elevation Mean 132.2 140.4 154.2 94.9 139.4

Standard Deviation 17.1 1.2 1.0 3.7 0.5Max 156.0 143.0 156.0 99.0 140.0Min 89.0 138.0 153.0 89.0 139.0

Mean + 2 StDev 166.3 142.8 156.2 102.2 140.4Mean - 2 StDev 98.0 137.9 152.3 87.6 138.4

EastMGA 635366Mean 635364.78 635365.48 635353.42 635363.86 635366.29

Standard Deviation 4.51 0.23 2.94 0.20 0.46Max 635368.90 635365.89 635357.10 635364.09 635366.83Min 635348.64 635365.12 635348.64 635363.52 635365.54

Mean + 2 StDev 635373.79 635365.94 635359.31 635364.25 635367.21Mean - 2 StDev 635355.77 635365.02 635347.54 635363.46 635365.37

NorthMGA 7756804Mean 7756802.87 7756803.64 7756804.41 7756797.91 7756805.02 7756802.51

Standard Deviation 2.06 0.27 0.34 0.25 0.17Max 7756805.34 7756804.22 7756804.96 7756798.18 7756805.34 7756802.68Min 7756797.61 7756803.22 7756804.04 7756797.61 7756804.83 7756802.26

Mean + 2 StDev 7756806.99 7756804.18 7756805.08 7756798.41 7756805.37 7756802.82Mean - 2 StDev 7756798.74 7756803.10 7756803.74 7756797.40 7756804.68 7756802.20