Previous exploration activity by Buka within the Lady Annie Project tenements was confined to EPM 11185, located to the west of the Lady Annie copper deposit, and within ML5568.  Another 4 adjoining exploration permits, were recently granted.

A number of copper exploration targets have been identified based on a review of previous exploration data, favourable structural and geological settings, the results from soil geochemical and geophysical surveys and the presence of surface oxide copper mineralisation.  Three copper target areas have been identified within EPM 11185:

• the Climax Copper Prospect in the northern end of the EPM, defined by a soil anomaly;
• the Galah Creek Syncline copper anomaly; and
• the Questem airborne electro-magnetic (“AEM”) anomalies.

Within the Lady Annie sub-lease, Buka defined up to 13 exploration targets based on known copper geochemical and geophysical anomalies.  Some of these targets have been drill tested and indicate the presence of low grade copper mineralisation.  The most prospective targets are in the general vicinity of the Lady Annie copper deposit (Figure 6).

A drilling programme that commenced in September 2006 to test 10 prospects in close vicinity to the Lady Annie resource has been completed.  The programme consisted of 5,768 metres of RC drilling in 68 drill holes. 

The programme targeted;

• areas marginal to the existing Lady Annie resource;
• prospects in close vicinity to the Lady Annie resource where encouraging historic drill results are recorded; and
• areas of anomalous copper in soil geochemistry.

Significant results from the near mine oxide extension targets previously reported  included:

Lady Annie East	54 metres @ 2.31% Cu from 32 metres
Central-Southern Pit	51 metres @ 0.92% Cu from 71 metres
Lady Brenda South	9 metres @ 1.61% Cu from 24 metres
Lady Treska	17 metres @ 1.95% Cu from 8 metres including 4 metres @ 6.54% Cu from 9 metres
Lady Brenda	15 metres @ 0.44% Cu from 19 metres
LA7	20 metres @ 0.57% Cu from 1 metres
Lady Annie East	23 metres @ 0.53% Cu from 65 metres

A follow-up 3,000 metre RC drilling program will commence during mid 2007 to further evaluate these prospect areas for significant oxide copper discoveries.

Lady Treska Prospect
Located 1.5 km southwest of the Lady Annie copper deposit, the Lady Treska Prospect is identified by visible malachite on surface, anomalous copper in soil geochemistry, surface EM anomalies and a historic drill hole intercept of 2 metres @ 1.7% Cu from 38 metres (drill hole CARC185).  The three RC holes completed during this programme have indicated the potential for high grade oxide copper mineralization at the Prospect. 

Follow-up drilling will be undertaken this quarter to test the strike potential of the identified high grade mineralised zone.

LA7 & Lady Annie East Prospects
Oxide copper intercepts from RC drilling at the LA7 and Lady Annie East Prospects indicate the potential for marginal open pit extension of the Lady Annie oxide copper resource on the eastern side of the deposit towards both the north and east. 

Follow-up drilling due to start this quarter will systematically step out further to the north and east to test the strike potential in these areas.

Lady Brenda & Brenda South Prospects
These prospect areas lie within 1 km to the west and southwest of the Lady Annie deposit in an area of structural complexity caused by the intersection of several major faults.  Copper in soil anomalism (+50 ppm Cu) is widespread.  Historic drilling through the area was not systematic and much of the deeper drilling targeted sulphide copper with the oxide zone not having been assayed. 

The best recorded historic oxide drill results from the Lady Brenda & Brenda South Prospects include:

• 27 metres @ 0.47% Cu (LAS003)
• 32 metres @ 0.32% Cu (LARC253)
• 18 metres @ 0.36% Cu (LARC250)
• 18 metres @ 0.29% Cu (LARC248)

Historic drilling combined with recent drill results now defines an area some 600 metres long containing significant and encouraging copper drill intercepts.