The Murray Range Project contains extensive sequences of Giles Complex mafic/ultramafic rocks 50km to the northwest of the Wingellina Ni-Co Deposit. 33 airborne EM targets were defined by Discovery Metals and Falconbridge prior to the JV with Redstone. Exploration commenced in 2007, with several rounds of clearances completed, on-ground EM to validate the priority GeoTEM targets, RAB drilling and regional geochemical sampling programs. Through regional lag sampling, several significant anomalies were highlighted. Assessment of the 33 airborne EM anomalies highlighted several multi-element geochemical anomalies. EM anomalies with multi-element geochemical anomalies were RAB drilled in May 2008.

EM Targets (larger red dots are associated with multi-element geochemical anomaly)

Dragonfly (Ni-Cu-Co-Zn)

Dragonfly is a Ni-Cu-Co-Zn anomaly with peak values of 2.2% Ni, 2.9% Co, 866ppm Cu and 1,654ppm Zn. Numerous values of >1% Ni and Co are present in pisolites over 400m strike. The anomaly is in sand dune country with sporadic gabbro outcrops and the geochemical trend is open to the north. The coincident geochemical and EM anomalies are situated in a flexure in the regional mag. RAB drilling yielded peak results of 1m @ 0.54% Ni, 0.55% Cu (DMB0017), 7m @ 0.19% Cu (DMB0128) and 2m @ 0.32% Ni and 0.46% Co.

Dragonfly Ni-Co-Cu-Zn

El Cortez (Ni-Cu-PGE)

El Cortez, a coincident EM and multi-element anomaly (peak Lag results of 718ppm Ni, 651ppm Cu handheld XRF results), returned the best RAB results with a zone of enhanced Ni-PGE mineralization and associated Cu anomalism (peak intercept of 8m @ 0.26% Ni, including 3m @ 0.39 g/t PGE+Au and 0.36% Ni (BSB0074), from a shallow 10m hole open at depth). Initially, these results were thought to relate to Ni-Laterite style mineralization in ultramafic rocks. However, recent sectional interpretation has shown that the mineralization is likely a weathered sulphide target with coincident Ni-Cu-PGE sulphides (weathered) and EM and magnetic anomalies.

Peak Drill Hole Intercepts at the El Cortez Project

Further follow up work is required, including mapping, additional down hole geochemistry, ground EM and extensional ground magnetics, to improve the understanding of the prospect and targeting for the next round of drilling.