Equator Resources Ltd

Liberian Projects

Equator Resources holds 1,578 km² of gold exploration projects in southeastern Liberia West Africa comprising the Bukon Jedeh Concession Mining Concession covering an area of 252 km², the Maryland County Mineral Exploration License covering an area of 628 km², River Gee County Mineral Exploration License covering an area of 698 km² ("The Bukon Jedeh Projects").

The Bukon Jedeh Projects consists of three mineral concessions in south eastern Liberia, covering 1575km² of the Birimian greenstone belt, within the West Africa Gold Province. Stretching from Ghana to Senegal, the Birimian greenstone belt is one of the world's most prolific gold mining areas and is home to several multi-million ounce deposits (Figure 1).

Figure 1: Bukon Jedeh Project tenements located within the West Africa gold province containing the Birimian greenstone belts. Gold stars are existing gold deposits.

The three concessions include areas with extensive historical gold workings and on one tenement there are outcropping Banded Iron Formations (BIF) that may be prospective for iron ore deposits. All tenement areas are associated with regional fault zones (Dugbe and Dube) that may control mineralisation (Figure 2).

The Bukon Jedeh concession of class Mineral Development Agreement (MDA) is located 50km east of the port city of Greenville and covers an area of 252km². It is an advanced gold prospect covering a mega-placer anomaly, numerous artisanal workings, and stream sediment and soil anomalies. Pitting and trenching has strongly suggested the presence of significant primary gold mineralization, with gold values in pits reporting up to 18.4g/t Au.

Soil sampling has delineated two large coherent gold-in-soil anomalies outlined by a 50ppb Au contour, and several smaller anomalies which require more systematic work (Figure 3). The largest anomaly is 5km long and 300-700m wide, with sample assays up to 12.89g/t Au. The other large anomaly currently measures 1km long and 200-600m wide and is open to the east and requires further extensional sampling.

Pit sampling within the soil anomalies has involved digging small 1m by 2m pits averaging 2.5m deep. A channel samples was collected near the base of the pit. Assay results on the pit samples ranged from below detection (<0.01g/t Au) to 18.4g/t Au, and numerous samples reported gold values over 1.0g/t Au up to 18.4g/t Au. Figure 3 shows the location of pits with assays greater than 2.0g/t Au.

Follow-up trenching along a 3.5km zone tested the soil and pit geochemical anomalies outlined in the Bukon Jedeh concession. Fifty four trenches totalling 3000 meters were excavated, with most trenches dug to a depth of 2 to 2.5 meters and typically ended in the upper ferruginised saprolite zone. Two metre composite channel samples were collected near the base of the trenches. Assay results on the 2m composite samples ranged from below detection (<0.01g/t Au) to 5.59g/t Au. Gold mineralisation reported over broad intervals (using a cut-off grade 0.5g/t Au), including:

• 66m at 1.05g/t Au
• 62m at 1.06g/t Au
• 24m at 1.83g/t Au
• 20m at 1.47g/t Au
• 20m at 1.08g/t Au
• 14m at 1.87g/t Au

No drilling has been undertaken, but there are drill-ready targets and RC drilling is planned to test a 4km long zone in 2011.

Figure 2: Geology and tenements in south eastern Liberia. Legend: gndq: quartz diorite gneiss; gng: granitic gneiss; gnl: leucocratic gneiss; gn2: composite gneiss; mi: migmatite; sm: mica schist

The Maryland exploration permit is located 35 km north of the port city of Harper, and covers an area of 628km². The permit is underlain by several gneissic, schistose and amphibolite rock units, including iron formation, that are interpreted to be a greenstone belt. Two main structures occur within the permit, including 13.5km strike of the Dube shear zone in the north, and the southern half includes a 21 km strike of a regional ENE structure (Figure 2). There are a number of known gold occurrences within the Maryland exploration permit, and significant gold mineralisation to the west outside the tenement. There has been no previous systematic exploration.

The River Gee exploration permit covers an area 695km² and is located near the town of Kahnwiaken. The permit includes a 42 km strike of the Dugbe shear zone and is underlain by several gneissic units, including itabirite, which suggests a greenstone belt parentage. A number of known gold occurrences are reported in the River Gee exploration area; some of which appear to be spatially associated with the Dugbe shear zone. There has been no previous systematic exploration.

Background on Liberia

Liberia is the only country in Sub-Saharan Africa never to have known colonial rule in the 163 years since it became a republic in 1847. Liberia is situated on the West Coast of Africa, amongst some of the richest gold producing areas in the world, namely Guinea, Cote d'Ivoire (Ivory Coast), Mali, Burkina Faso and Ghana, including significant and world-class gold mines like Obuasi (38.8Moz) and Sadiola (14.2Moz). Given its history, the country is only now beginning to realize its mineral producing potential. BHP Billiton, ArcelorMittal and African Aura/Severstal are actively exploring for iron ore resources, which will improve the general level of in-country mining expertise and infrastructure. China Union has acquired the Bong iron ore concession. Numerous small-cap gold exploration companies have acquired property licenses.

Liberia has been stable since a negotiated peace and the installation of an interim government in 2003. Liberia is currently under the administration of President Ellen Johnson-Sirleaf, a former HSBC Equator Bank, World Bank, senior UNDP officer and advisor to Modern Africa Fund. President Johnson-Sirleaf is Africa's first democratically elected female head of state and her administration has been acclaimed worldwide as one of the most able and politically acceptable governments in Africa. In addition, the United Nation maintains a significant and highly visible presence in Liberia.

Figure 3: Gold assay map Bukon Jedeh showing +50ppb Au anomalies, pits with >2.0g/t Au and trench intervals reported. 

Australian Projects

Equator Resources holds eight granted Exploration Licences in the Pine Creek Geosyncline region (Frazer Project) and nine granted Exploration Licences (EL27568, 27626, and 27714 to 27720), and Substitute Exploration Licence SEL 27526 in the Georgina-Atjawarra region (Ooratippra Project) of the Northern Territory ("Tenements") covering a combined area of approximately 2,800 square kilometres.

The Company also holds two granted Exploration Licences (EL27639 and 27645) and nine Exploration Licence applications (ELA28081, 28190, 28207, 28222, 28223, 28352, 28397, 28594 and 28595) known as the Plenty River project, located 150km north east of Alice Springs. The area is prospective for copper, gold and nickel mineralisation.

The Frazer project south of Darwin is prospective for uranium, gold and base metals based on historical exploration reports and exploration carried out by the Company.

The Ooratippra project northeast of Alice Springs has geophysical magnetic and gravity anomalies resembling those at Prominent Hill and Olympic Dam and is prospective for uranium, gold, base metals and diamonds.

The Acacia/Frazer project approximately 60 kilometres south of Darwin, and Ooratippra Project northeast of Alice Springs (Figure 4). Following the completion of the BJH transaction the Company will undertake a full review of the Northern Territory Projects.

Frazer and Frazer North Prospect

In the past year the Company has tested the Frazer prospect through a Phase 1 Rotary Air Blast ("RAB") drilling programme for a total of 2,194.12 metres in 72 holes. No uranium mineralisation was intersected, but a lead and zinc geochemical anomaly was identified, with a maximum 6 metre interval of 1380ppm Zn and 805ppm Pb.

DeMonchaux Creek gold Prospect

Following the exceptional surface gold results previously reported (11 November 2010) that generated gold values to 21.8g/t Au at De Monchaux Creek, a trenching and drilling programme is planned to confirm trenching and drilling intersections by previous explorers. A review is also underway of the Acacia North gold prospect which resembles the De Monchaux Creek target.

Ooratippra

The Ooratippra Project hosts a gravity and co-incident magnetic anomaly which is one of the largest untested gravity anomalies in Australia with dimensions in the order of 35 kilometres by 15 kilometres. Early gravity surveys over the anomaly used station spacings too wide to enable accurate depth estimations to the top of the causative body to be made. Equator Resources completed a 2,485 station, 1000 metre spaced helicopter borne ground based gravity survey in September 2010.

Geophysical modelling of the gravity programme completed in 2010 has identified two targets for infill gravity work currently being considered.

Plenty River

The Company is currently completing a historical review of data on the tenements as part of the full review of the Northern Territory projects that will be undertaken upon completion of the BJH transaction.