Eastern Metals Limited announced that a Lithium Pegmatite exploration program has commenced at Barrow Creek. This program will be initially to map outcropping granites that may contain pegmatites and to identify where these may also be under transported cover. In addition exploration will be conducted on and about Home of Bullion where pegmatite float specimens were identified around old workings and in the vicinity of the nearby core yard.

Arunta Project; The Company's Arunta Project comprises two separate tenement blocks, all located within the Northern Arunta pegmatite province, part of the Aileron province of the Northern Territory. These are in the northern Barrow Creek area, and the southern Adnera area. The tenements are situated east of the Stuart Highway between Alice Springs and Tennant Creek near the township of Barrow Creek.

Barrow Creek Pegmatite Field; The Barrow Creek area lies within the Barrow Creek pegmatite field. The pegmatites in this area intrude metamorphosed mudstones, sandstones, schists and amphibolite of the Palaeoproterozoic Bullion Schist, which itself is the host rock of the Company's Home of Bullion copper deposit. The source of the pegmatites is the Barrow Creek granite complex, which occurs widely throughout the Barrow Creek area, including at Prospect D where it outcrops.

Interpretation of geophysical data also suggests the granite occurs at shallow depth in the Home of Bullion area. Pegmatites in the Barrow Creek pegmatite field are grouped into three main zones known as the western group of pegmatites, the eastern group, and the Neutral Junction group. Some of these pegmatites were worked on a generally small scale, largely for tin, tungsten, tantalum, and mica, mainly from the 1940s to the 1980s.

The pegmatites are up to a kilometre or so in strike length and from less than a metre to a few metres wide. The Northern Territory Geological Survey (Frater, 2005) has reported analyses of grab samples taken from 12 pegmatite workings in the Barrow Creek field. The highest lithium values, averaging 570 ppm Li, were obtained from pegmatites in the Neutral Junction group.

This result was amongst the highest values returned from sampling in the wider Northern Arunta pegmatite province. The main occurrences in the Neutral Junction group are about 3 kilometres south of the Neutral Junction homestead. EL 23186 is on the Neutral Junction pastoral lease, about 4 kilometres to the east of the homestead.

The Northern Arunta pegmatite province covers a large area of the Arunta Block centred around the Stuart Highway, from just north of Alice Springs to south of Tennant Creek. It extends to the west to the Tanami Highway and to the east to the Plenty Highway. There is a large number of tin, tungsten, tantalum, mica and workings for other minerals developed in pegmatites in this province.

Until very recently, no systematic exploration for lithium had been carried out in the Barrow Creek pegmatite field. Lithium is known to occur elsewhere in pegmatites in the minerals spodumene, petalite, and lepidolite a mica.