GUNSON RESOURCES LIMITED
MOUNT GUNSON COPPER PROJECT - UPDATE
14th November 2007
1 Geophysical Surveys
An infill gravity survey comprising 646 new readings at 250 metre and 500 metre spacings over the northern half of the Project, in particular between Emmie East and Chianti prospects, was completed on
9th November. The survey areas are shown on the attached diagram.
Results of the survey have yet to be fully interpreted but some promising anomalies untested by previous drilling are evident, in particular within the following locations:
1.1 Area A. A
1.2 Area C. A small 1 km wide residual gravity anomaly about 4 km north along strike from Chianti Prospect.
1.3 Area D. Two residual gravity highs located about 6 km north of Chianti Prospect, which together look like a repetition of the Chianti Prospect gravity feature.
1.4 Area E. A residual gravity high approximately 300 metres south east of hole MGD 42 drilled at Emmie East Prospect earlier this year, to test the Emmie East gravity anomaly. This confirms the interpretation that MGD 42 missed the gravity anomaly it was designed to test.
Gravity anomalies within Areas B and F were considered to be lower priority but further infill readings at Area F are planned for December 2007.
Although down hole EM in hole MGD 44 at Chianti Prospect has been completed with negative results, surveying of MGD 34 was not possible due to a blockage in this hole at 50 metres depth. The EM crew is scheduled to return in late November to carry out a surface survey at Chianti Prospect and another attempt to obtain readings down MGD 34 will be made at this time.
A week-long IP survey at Chianti Prospect is also scheduled for late November.
2 Drill Targets
Interpretation of the results from the EM and IP surveys should be completed a week after they have been received from the respective geophysical contractors. Selection of drill targets from the EM, IP and gravity data will be made in conjunction with the Company’s joint venture partner, Xstrata Copper, who through its company Noranda Pacific Pty Ltd, has the right to earn a 51% interest in the Mount Gunson Project by spending $3.5 million in 3 years from 15th June 2006. Xstrata Copper had spent $1 million up to the end of September, 2007.
3 Drilling
A Western Australian drilling contractor has scheduled a rig to commence work on the Project in late January 2008. This is the earliest practical timing for commencement of the drilling program, in view of the time required to complete the above geophysical program.
In all cases, the drilling targets will be iron oxide copper-gold deposits in basement rocks.
D N HARLEY
MANAGING DIRECTOR
Attachments
Figure 1
Telephone: (08) 9226 3130
Facsimile: (08) 9226 3136
Email: enquiries@gunson.com.au
Website: www.gunson.com.au
Address: PO Box 1217, West Perth
Western Australia 6872
Media: Tony Dawe 0413 322 110
Attribution
The information in this report that relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr D N Harley, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Harley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Harley consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears.