PATERSON RESOURCES LTD — Interim / Quarterly Report 2012

Jul 26, 2012

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27th
July
2012

Company
Announcements
Office Australian
Securities
Exchange 20
Bridge
Street SYDNEY
NSW
2000

**Quarterly

Report
for
quarter
ended
30[th] June
2012.**

CORPORATE:

On
6[th] April
2012
,shareholders
passed
a
resolution
to
acquire
100%
of
the
shares
in
Orange Hills
Resources
Limited.
This
has
added
a
number
of
projects
to
our
assets,
with
Gold
Bauxite, Diamond
and
Base
Metals
potential.

On
6th
of
July
2012
Iron
Mountain
Mining
Limited
determined
to
make
an
off
market
bid
for
all shares
in
United
Orogen
Limited,
offering
one
fully
paid
share
in
Iron
Mountain
for
every
four shares
held
in
United
Orogen.

**MINERAL

EXPLORATION
WESTERN
AUSTRALIA**

• Tambellup
  Project:
  Assessment
  and
  planning
  for
  further
  follow
  up
  work
  was
  carried
  out. New
  sampling
  will
  be
  centered
  on
  the
  anomalies
  for
  Au
  delineated
  on
  E
  70/4174
  and
  across E70/4173.

• Following
  the
  grant
  of
  E70/4073,
  the
  Redmond
  Tenement,
  aerial
  photography
  from
  1943
  was acquired
  to
  assist
  in
  locating
  old
  workings
  and
  shafts.
  Research
  was
  carried
  out
  into
  old
  maps of
  the
  area.
  Field
  work
  on
  Redmond
  area
  will
  be
  based
  on
  this
  located
  information.

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Mt. Leeming-­‐Bauxite-­‐E80/4243 and E80/4439. (100%).

The
Mt
Leeming
project
is
an
opportunity
for
bauxite
with
a
significant
level
of
earlier exploration
activity
and
scoping
data.
Historical
resource
estimates
have
been
completed
prior to
the
introduction
of
the
JORC
code.
Drilling
and
pitting
carried
out
during
earlier
exploration programmes
identified
significant
thicknesses
of
bauxite
in
the
Carson
Volcanics
on
tenement E80/4243.There
is
potential
to
extend
bauxite
to
the
north
and
to
the
south
west.
Scoping studies
carried
out
by
Cape
Alumina/Aldoga
Minerals
in
2005
indicate
the
possibility
of
an
open pit
operation
in
close
proximity
to
Asian,
Australian
and
Russian
markets.
Their
objective
was export
through
a
nearby
marine
loading
facility
on
the
Anjo
Penninsula.
UOG’s
first
priority
is
to fast
track
the
delineation
of
additional
bauxite
resources
and
to
explore
the
market
for
price and
offtake
agreements. The
Bauxite
prospectivity
of
the
project
area
is
considered
to
be
significant
and
more
detailed exploration
and
sampling
is
planned.
Access
from
Kalumburu
Mission,
situated
some
40kms
to the
north
is
by
the
Gibb
River-­‐Kalumburu
Road
that
passes
the
prospect
area
to
the
west.
There is
good
power
and
road
infrastructure
in
place. The
project
tenements
contain
large
irregular
outcrops
of
bauxite-­‐rich
laterite.
(The
irregular outcrops
cover
an
area
of
approximately
110
sq
km).BHP
reported
grades
of
bauxite concentrate
from
scrubbed
and
screened
(>1/16”)
product
returned
average
results
of
46.1% total
alumina,
37.2%
180°C
alumina,33.5%
143°C
alumina,
25%
Fe203
and
5%
total
silica
of which
only
0.3%
was
a
reactive
silica.
Average
grades
of
the
other
impurities
were
25%
Fe2O3 and
3.9%
TiO2. In
2004,
Aldoga/Cape
Alumina
Pty
Ltd
carried
out
check
reconnaissance
sampling
of
the
original BHP
ground
and
the
area
adjacent
to
and
north
of
E80/4243.
Aldoga
also
drilled
80
holes
at
Mt Leeming
for
a
total
of
660.5m.

A
total
of
472
samples
were
assayed
for
low
temperature reactive
silica
and
alumina
recoveries
from
the
Mt
Leeming
drill
holes.
At
Mt
Leeming,
the highest
alumina
assay
was
43.3%
in
Hole
K80.Bulk
samples
were
collected
from
each
of
two
pits dug
by
excavator
to
4m.UOG
is
reviewing
data
received
as
part
of
the
acquisition
in
order
to plan
for
new
exploration
activities
on
the
new
tenements.

2

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Tenements Acquired from Orange Hills Ltd
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Cape Londenderry-­‐Gold E80/4372.(100%).

The
Cape
Londonderry
project
covers
rock
sequences
which
are
prospective
for
both
gold
and alumina
and
pisolitic
iron.
Reconnaissance
exploration
by
earlier
explorers
has
identified
gold and
volcanic-­‐hosted
base
metals

mineralization.

Lawley-­‐Gold,Base Metals E80/4435. (100%).

The
geological
setting
is
prospective
for
both
gold
and
diamonds.
Although
relatively unexplored,
work
by
others
has
identified
a
number
of
anomalous
gold
values
ranging
up
to 5600ppb,
together
with
at
least
one
diamond
occurrence.
Areas
that
have
outcropping
(and faulted)
Hart
Dolerite
will
be
the
subject
of
detailed
mapping
and
sampling
in
the
search
for hydrothermal
alteration
and
vein
type
base
metal
mineralization.

Vansittart-­‐Gold,Base Metals E80/4434.(100%).

The
Vansittart
Prospect
is
believed
to
be
prospective
for
gold
hosted
by
King
Leopold
Sandstone and
possibly
base
metals
in
the
Hart
Dolerite,
where
hydrothermal
veins
elsewhere
in
that
rock sequence
reportedly
contain
identified,
polymetallic
(gold,
silver
and
base
metal) mineralization.
Extensive
areas
of
the
Hart
Dolerite
surround
the
prospect
and
detailed exploration
is
warranted
in
the
search
for
these
prospective
rock
sequences
within
the Company’s
tenement
area.
Exploration
by
others
report
on
the
presence
of
microdiamond occurrences,
within
the
postulated
gold
mineralized
corridor
that
extends
northeast-­‐southwest, along
a
line
between
E80/4372
and
E80/4434.

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Tambellup Project (100%)

(Tambellup
E70/4173,
Granted.
Tambellup
East
E70/4174,
Granted)

The
two
licenses
cover
approximately
395
km
²
and
are
situated
100km
north
of
Albany
and
30 km
south
of
Katanning.The
project
area
lies
within
the
Yilgarn
Craton
South
West
Terrane
with the
Albany-­‐Fraser
Proterozoic
Mobile
Belt
lying
to
the
south
and
is
prospective
for
gold
and base
metals.

Soil
sampling
was
carried
out
on
anomalies
in
the
western
part
of
E70/4174
and
on
E70/4173
in the
March
2012
Quarter.

On
E70/4174
UOG
is
assessing
an
extension
to
the
northern
anomaly
.The
highest
result
was 3
ppb
and
additional
closer
spaced
sampling
will
help
define
structures
parallel
to
the
main northerly
anomaly.

On
E70/4173,
anomalous
results
of
up
to
13
ppb
have
been
obtained
on
the
interpreted position
of
the
Darkan
Fault
in
the
north
of
the
tenement.
Other
soil
samples
in
the
vicinity have
values
of
6.4
And
3
ppb.
Follow
up
soil
sampling
will
be
carried
out
around
these anomalous
results
and
along
the
interpreted
trends
of
the
Darkan
and
Kojunup
structures.

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6

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Aeromagnetic Image Tambellup East
showing new soil anomaly UOG
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Redmond Project (100%)

(E70/4073;
Granted
April
2
2012)

During
this
quarter,
UOG
acquired
RAAF
photography
dating
to
1943.This
photographic
record was
superimposed
on
reported
locations
of
workings
and
soil
sampling
carried
out
in
1997. This
has
assisted
in
the
search
for
the
locations
of
shafts
and
workings
that
have
been
recorded as
having
had
a
production
of
gold.

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Redmond Prospect Location of old
workings.
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Victoria Desert Project (100%). (Victoria
Desert
E39/1528,
Victoria
Desert
North
E39/1594)
.

The
Project
area
is
situated
250km
ENE
of
Kalgoorlie
and
covers
an
area
of
approximately 185km²
and
is
prospective
for
gold,
base
metals
and
uranium.
The
area
is
covered
by
undulating WNW
trending
sparsely
vegetated
static
sand
dunes
with
an
average
height
of
10-­‐15
metres. This
continuous
sand
cover
obscures
the
bedrock
mineralization
and
the
suitability
of
surface sampling
techniques
is
often
brought
into
question.

Previous
exploration
on
the
Victoria
Desert
North
(E39/1594)
has
resulted
in
anomalous
results in
the
vicinity
of
Lake
Miningwal,
in
calcrete,
for
gold
and
uranium.
Previous
explorers
have found
at
least
six
gold
anomalies
and
two
areas
with
uranium
anomalies.
There
is
potential
for sedimentary
hosted
gold,
base
metals
and
uranium
deposits.
It
has
been
possible
to
define lineaments
in
lake
sediments,
as
they
are
of
a
different
colour
due
to
the
influx
of
oxidized brines.This
northern
tenement
requires
exploration
for
mesothermal
lode
style
deposits.

The
Victoria
Desert
North
project
is
underlain
by
narrow
belts
of
north
west
trending greenstone
of
the
Narnoo
Greenstone
Belt
within
granites
interpreted
from
aeromagnetic surveys.
Mafic
and
ultramafic
lithologies
are
present
in
a
structural
setting
of
north
and
north west
trending
brittle deformed
faults
.The
area
is
therefore
prospective
for
gold,
base
metals and
uranium.
During
this
quarter
UOG
continued
further
desktop
studies
for
target
generation.

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Horseshoe South Project (100%)

(Horseshoe
South
E52/2569)

UOG’s
exploration
has
included
a
heliborne
geophysical
survey
which
indicated
no
deep conductors
are
present
in
this
area
negating
the
possibility
of
a
deep
sulphide
deposit.
This
area is
being
targeted
for
north
west
striking
structurally
controlled
gold
mineralization
due
to
the vicinity
of
known
deposits
in
the
area
however
field
checking
and
a
data
review
of
previous
soil geochemistry,
mapping
and
drilling
carried
out
by
Dominion
Mining
in
this
area
did
not
produce encouraging
results.
Additional
work
will
be
required
in
the
north
west
area
of
the
tenement
to determine
the
prospectivity
of
the
project
area.

Gunnedo Project (100%) (E69/2825)

The
tenement
is
located
within
the
Eucla
Basin
approximately
450km
east
of
Kalgoorlie
and covers
an
area
of
132km².
Previous
exploration
is
very
limited
which
includes
aeromagnetic
and gravity
surveys
and
two
partly
government
funded
(50%)
diamond
holes
drilled
to
a
depth
of 400m
each.
The
explorers
were
targeting
possible
nickel
sulphide
mineralization
within
a
north easterly
trending
zone
of
magnetic
anomalies
coincident
with
gravity
high.
No
significant
nickel mineralization
was
intersected.
Other
major
explorers
working
in
the
vicinity
of
the
Gunnedo project
have
relinquished
their
holdings
and
are
now
concentrating
their
efforts
120km
further east
along
the
major
Mundrabella
fault.

Examination
by
our
geologists
has
not
revealed
lithologies
that
may
host
significant
thicknesses of
base
metals
or
gold
mineralization.
Radiometric
measurements
on
the
core
were
not significant.
Based
on
reviewing
this
information
UOG
has
decided
to
relinquish
this
tenement
as it
does
not
meet
our
criteria
for
being
prospective
for
Gold,
Base
Metals
or
Uranium occurrences.

12

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EP 448 Canning Basin Oil and Gas .

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13

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Key
Petroleum,
on
behalf
of
the
EP
448
Joint
Venture,
(of
which
UOG
holds
10%),
are negotiating
with
potential
farm-­‐in
groups
to
progress
exploration
within
the
EP448
Permit
in the
Canning
Basin.
This
permit
is
located
in
the
southern
part
of
the
basin
where
other companies
have
committed
large
exploration
programs
in
the
search
for
shale
gas
reserves.

This
part
of
the
Canning
Basin
has
rich
oil
source
rocks
of
the
Goldwyer
Formation
which
are considered
some
of
the
richest
source
rocks
in
Western
Australia.
The
West
Anketell
8,000
line km
Aeromagnetic
Survey
was
completed
and
existing
seismic
is
being
evaluated
to
delineate carbonate
reef
type
prospects
in
the
Nita
and
structural
development
in
carbonates
of
the RPS Nullara
Formation
as
well
as
the
Goldwyer
Formation
for
Shale
Oil/Shale
Gas
potential. Energy
consultants
have
been
appointed
by
Key
Petroleum
to
undertake
Shale
Oil
Maturation Studies.

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Parmesh
Vakil Managing
Director

The information within this report as it relates to exploration results and mineral resources was compiled by the Managing Director Mr. Parmesh Vakil. Mr.Vakil is a full-time employee of the company and is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Vakil has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration 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, the JORC Code”. Mr. Vakil consents to the inclusion in the report of the matters based on information in the form and context which it appears.

14