Enterprise Metals Ltd. announced that it has commissioned geophysical contractor NRG Australia to fly a major helicopter borne Time Domain Electromagnetic & magnetic (TEM) survey north of Cue, over the felsic volcano-sedimentary suite hosting the Wattagee and Eastmet Zn-Cu gossan trends. Historic gold discoveries in the Cue area such as Big Bell, Cuddingwarra and Day Dawn (the Great Fingall and Golden Crown) were all found through prospecting and discovery of gold nuggets in elevated (subcropping- outcropping) areas, where mafic rocks such as dolerite, gabbro and banded iron formations were the major host rocks. Conversely, the low lying areas, blue areas) with post mineral cover did not shed gold nuggets, as the basement volcanoclastic rocks contained appreciable amounts of sulphides, which led to acid leaching, deeper weathering, and the occasional outcropping gossan.

Modern exploration in the area commenced in 1971, with copper-zinc exploration based 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 airborne electromagnetic surveys which were effective only in areas of nil to shallow transported cover (for example, at Emily Well). Esso and others in the 1970's intersected significant downhole widths and grades of copper-zinc sulphide mineralization at the AM14 and Eastmet Gossan prospects. Although these historic copper- zinc intersections were sub-economic, they are significant as VMS style deposits can occur in clusters and along strike within distinct stratigraphic horizons.

The Wattagee and Emily Well horizons in Enterprise's Murchison Project are each approximately 45km long, giving a combined strike length of these stratigraphic horizons of some 90km. From 1987 onwards, the industry exploration focus shifted to gold, with soil sampling, rotary air blast drilling and reverse circulation drilling defining gold anomalism throughout the western and northern parts of the project area. While there has been considerable historical exploration undertaken for gold in the western part of Enterprise's Murchison Project, there has been no significant modern electrical geophysical surveys undertaken over the Wattagee and Emily Well VMS trends.

In addition, airborne EM systems have improved dramatically since the 1970's. Modern helicopter borne TEM surveys offer high resolution and effective signal to noise ratio from large loops suspended 30m-40m above the ground. Enterprise's TEM survey consists of 91 east-west lines 400m apart and totals some 624 line km's. The survey covers Enterprise's Prospecting Licences 20/2302 and P20/2303, 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. NRG's XciteTM system when compared to all other AEM technologies available in the market is uniquely qualified and is unparalleled in its abilities.

It is the only system that offers early time (near surface) resolution due to its very fast transmitter pulse turn-off speed, coupled with late time (deep penetrating) performance in a single pulse waveform. The streaming data provides an along line resolution of ~0.5m with uninterrupted `soundings' from near surface to >300m depth of investigation. No other AEM system can offer this level of resolution laterally and vertically.

Based on the TEM results, Enterprise intends to follow up with ground based Moving Loop EM (MLEM) surveys and RC drilling. Due to weather constraints, the commencement date of the survey is currently uncertain.