Myall Creek (SER 50%) EL 3538 SOUTH AUSTRALIA

 

The Myall Creek Copper Project (EL3538) covers an area of 381 km² and is located on the southern Stuart Shelf between Whyalla and Port Augusta, a highly prospective part of the eastern margin of the Gawler Craton. SER holds a 50% interest in the licence. The license area is immediately west of the Torrens Hinge Zone and close to the sites of the Hiltaba granites. Copper and base metal mineralisation has been delineated over a wide area and in a range of the Proterozoic host rocks in this region.

 

The exploration programme was focused on a prospect named Honeymoon Dam. The Honeymoon Dam Prospect is 2.5km south of the known Myall Creek mineralisation zone. Depths to the mineralisation zones in the area are in the range of 50-150m.

 

Two holes were completed after hitting basement rocks, with mineralisation evident in the holes. The third and final hole encountered a number of difficulties and ceased at 105.2 meters, some 10 meters short of the interpreted mineralised zone. The hole was called to a halt due to poor weather conditions. Further drilling will depend on weather and rig availability. The core for the two completed holes has not been submitted for assay and analysis at this stage. The Joint Venture partners have agreed not to submit the cores for analysis until the third and final hole has been completed. This means it could be sometime before results are available. As soon as the rig resumes operations an announcement will be made on the ASX.

 

Joint Venture documentation regarding Myall Creek has been finalised between SER and U Energy Pty Ltd and its parent company, Fleurieu Mines NL. Mark Muzzin is a director and major shareholder in Fleurieu Mines NL.

 

Cultana (SER 75%) EL 3547 SOUTH AUSTRALIA

 

The Cultana Lease EL3547 covers an area of 792 km2 within the Cultana Army Training Area south of Port Augusta in South Australia. Access to the Army Base has only been approved for mineral exploration on three prior occasions. Ten holes were drilled in the licence area, and none of them penetrated crystalline basement. The Cultana Inlier is considered to be one of the best remaining blocks to explore for IOCG (iron oxide, copper, gold) mineralisation in South Australia. SER holds a 75% interest in the licence.

 

The project still requires the standard regulatory approvals from PIRSA and more importantly, access permission from both the Department of Defence and Department of Finance prior to any exploration program. There are also Cultural Heritage issues that require consultation and clearance from indigenous groups. The approval process is currently being worked through.

 

SER believes access permission should be granted for drilling, subject to all approvals.

 

Joint Venture documentation regarding Cultana has been finalised between SER and U Energy Pty Ltd and its parent company, Fleurieu Mines NL. Mark Muzzin is a director and major shareholder in Fleurieu Mines NL.

 

 

Falcon Bridge (SER 95% diluting)
E38/1970, P38/3382, P38-3383-4 WESTERN AUSTRALIA

 

In late 2009, Ishine International Resources Ltd ("ISH") entered into a Joint Venture Agreement allowing Ishine to earn up to a 70% interest from SER in the tenements by funding up to $3 million on exploration expenditure. The Joint Venture area covers approximately 17km of strike of ultramafic rich stratigraphy in the Duketon Greenstone Belt coincident with linear magnetic anomalism.

 

During 2010 Ishine completed two rounds of drilling at the Falcon Bridge Nickel Project, 80km north of Laverton in the highly prospective Duketon Greenstone Belt. Initially 72 Aircore holes were drilled for 3,446m across six east-west traverses which resulted in the encouraging nickel and copper assays.

 

During late 2010 a short 8-hole reverse circulation (RC) drilling program was carried out to test some of these anomalies beneath the base of weathering and/or intersect the basal contact position of the ultramafic unit. A total of 1,199m were drilled with most holes reaching target depth.

 

Results were generally consistent with the first program of drilling with elevated nickel within the upper, weathered portion of the holes drilled. Results included:

 

  • FBRC001 57m @0.43% Ni & 71ppm Cu from 30m
  • FBRC00 45m @ 0.52% Ni & 87ppm Cu from 39m

 

ISH has received an external specialist's review report on the Falcon Bridge JV project. Upon completion of a review of this report, ISH will make a further decision on its position on exploration programs for this project.