Enterprise Metals Ltd. announced that geophysical contractor New Resolution Geophysics (NRG) has completed a helicopter borne Time Domain Electromagnetic (TEM) survey north of Cue. The survey is an important step in exploration over interpreted VMS horizons considered highly prospective for zinc and copper mineralisation. Although the locations of the zinc and copper rich VMS (volcanogenic massive sulphide) horizons are broadly known from historical shallow drilling and mapping programs, this new survey commissioned by ENT was designed to refine targeting and highlight new areas for investigation.

Exploration in the area commenced in 1971 with a focus on copper-zinc around prospects either defined by gossan sampling (and therefore limited to the small windows of outcrop, for example, around Wattagee Hill and the Eastmet Gossan), or areas of anomalous conductivity defined in relatively primitive fixed wing airborne EM surveys effective only in areas of nil to shallow transported cover. Esso Exploration and Production Australia Inc. (Esso) and others in the 1970's intersected significant downhole widths and grades of zinc-copper sulphide mineralization in shallow drilling at the AM14 and Eastmet Gossan prospects. These historic zinc-coper intersections are significant as VMS style deposits can occur in clusters and along strike and down dip within distinct stratigraphic horizons.

Enterprise has digitized and re-processed electrical geophysics completed by Esso over the AM 14 area, with a view to re-evaluating selected targets for further drill testing, generating new targets and identifying areas requiring follow-up geochemical programs and drilling. The IP surveys conducted by Esso over the AM14 prospect were modelled with 2D inversion software. The inversion models were run with a vertical bias to match the steeply dipping geology.

An IP line over the massive sulphide lenses intersected by Esso's drill holes WP135 and WP138 were reprocessed, and IP and resistivity models produced. The massive sulphide lenses were characterised by high IP and low resistivity (conductive) responses. The resistivity model identified three additional conductive zones (A, B & C) which have associated high IP responses.

These additional conductive zones (inc. Target A) did not appear to have been drill tested and are considered by Enterprise to be priority targets. The September AEM survey consisted of 91 east-west lines 400m apart and totaled some 624 line km's. The survey covered Enterprise's Prospecting Licences 20/2302 and P20/2303 just north of Cuddingwarra and Emily Well, the eastern half of E20/944, the Wattagee horizon in E20/913, the Emily Well horizon in E20/912, and the interpreted NW continuation of these two horizons up to the northern limit of E20/911. Next Steps ­ Ground follow-up of AEM anomalies: Detailed ground inspections of the prospective VMS horizon "corridor" in the areas of the new AEM anomalies will be undertaken to assess surficial conditions, outcrop where evident and cover conditions.

It is expected that ground geophysical surveys will be required to follow up accurately prioritised AEM anomalies and thereby identify targets for drill testing. Final levelled and processed data is expected to be received from contractor NRG in mid - October. This data will be integrated by Enterprise's geologists and geophysical contractors with Enterprise's considerable database containing previous explorers' mapping, soil sampling, drilling and limited Induced Polarisation surveys.