The licences and licence applications under tenure by Elsmore Resources and subsidiaries cover an area of over ,300km-2. in one of Australia’s richest Tin bearing regions. The geology of this area is key to Elsmore’s strategy. During the mid-Tertiary (circa 30Ma) volcanic activity led to the deposition of sapphire bearing volcaniclastics across the palaeo-surface which consisted of Greisenitic, Tin bearing granites.  Since then erosion and hydraulic forces have led to re-working, transport and concentration of these commodities in Alluvial and Colluvial settings. This has provided Elsmore with a unique two-pronged position to fund ongoing exploration with Sapphire production from its ML at Braemar while developing near term production of alluvial Tin and Sapphires at Newstead and exploring its large holdings for further high value, Cassiterite and Sapphire deposits.

Exploration by previous holder Malachite Resources Ltd, mainly of the Karaula Lead area, has established a JORC comliant alluvial tin resource as well as an undetermined amount of sapphires and diamonds. This exploration assessed only a small proportion of the available targets within ELR licences and considerable exploration upside is thought to exist within the numerous other targets within the licence.

The primary resources in the area of tenure consist of massive/vein style greisen systems and associated quartz cassiterite veins. These deposits have been mined in the Elsmore area at shallow depths since 1890. The secondary (alluvial, colluvial) exploration has isolated several zones (Hillcrest, Brads Gully, Directors cut and Glassy Bar) where the combined prospects of establishing significant shallow depth commercial reserves (around 0.50kg per cubic metre) are encouraging.

There are a number of locations prospective for small colluvial resources to be defined and extracted adjacent to primary mineralisation and concentrated by hydraulic action. These include the alluvial flats surrounding Sheep Station Hill at Elsmore, adjacent to Mt Topper in EL8005, Hannams prospect (EL8005) where 2kg/LCM has been assayed in exposed wash at surface. (Roach, 2005)

Bulk sampling and pitting/core concentration has clarified the grade/recovery/treatment design parameters of a moderate sized resource at Karaula lead, but given the difficult nature of alluvial assessment coupled with unknown quantity of credit sapphires in the desposit, further bulk sampling is recommended via a pilot plant style programme. This will more accurately reflect reserve assessment, whilst providing critical parameters concerning recovery, and plant design.