quartely

Exploration Office
1/22 Maple Avenue
KESWICK SA 5035
Tel: +61 8 8351 3388
Fax: +61 8 8351 0023
InterMet Resources Limited
[email protected]
[email protected]
ACN 112 291 960
www.intermetresources.com.au
Registered Office
Level 41 Australia Square
264-278 George Street
SYDNEY NSW 2000
Tel: +61 2 8221 0404
Fax: +61 2 8221 0407
ASX Code: ITT
Quarterly Report For
Period Ending 30 December 2006
Summary
Drilling during the quarter confirmed a potential major hydrothermal system at the flagship
Lake Gilles IOCG Project with further drilling planned for this quarter. Four Joint Venture
programs targeting uranium, IOCG and orogenic gold targets are underway. InterMet
continues to acquire prospective ground on the Gawler Craton with two new ELA’s totalling
1,051Km2 , targeting IOCG, Archaean base metals, Challenger style gold and unconformityrelated
uranium targets.
Highlights
• Drill hole RD-DD2 was completed on the Lake Gilles Project Red Dam prospect,
intersecting a magnetite-rich syenite with a 32 m zone of moderately intense quartz
veining and alteration. The rocks in this hole show evidence that a significant
hydrothermal system exists within the Lake Gilles project area and InterMet will
commence drilling of the untested Salt Creek and Lake Edge gravity anomalies in
February. Drilling of the Red Dam prospect failed to intersect an interpreted IOCG
system with no significant results returned. InterMet is undertaking petrophysical
measurements (density, magnetic susceptibility) of the drill core to ascertain the source of
the gravity anomaly.
• The first stage of the PACE funded Coulta drilling program was completed. Low level
copper, zinc and cobalt values were encountered in drill hole COU006 and anomalous
silver was in COU003. Followup drilling is planned to commence on January 29, 2007
with drilling to be completed by early to mid- February.
• InterMet has applied for 2 new ELA’s.
1. Garford North (ELA 683/06) – located on northern Gawler Craton within Christie
Domain which hosts the Challenger Gold Deposit. ELA 683/06 is prospective for
gold mineralization similar to Challenger.
2. Mount Wedge (ELA 690/06) – adjoins Cocata Project and is prospective for
unconformity-related uranium at the base of the Mesoproterozoic Blue Range Beds
and Archaean hosted lead-zinc and gold mineralisation within interpreted Archaean
basement rocks.
• InterMet has moved Office to Unit1 22 Maple Street Forestville.


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InterMet Resources Limited
Lake Gilles Project
(EL 3466 and 3467, ELA 537/06 – InterMet 100%, Mega Uranium earning 80% in
unconformity related uranium on EL 3467.)
The project area is prospective for Olympic Dam Cu-Au-U, Broken Hill Style base
metal, Orogenic Gold and Unconformity-related uranium.
IOCG Exploration
Hole RD-DD2 was a vertical hole collared at 685000E 6366500N on the Red Dam prospect
of InterMet’s Lake Gilles tenement (EL3466). It was pre-collared to a depth of 45 m then
drilled with NQ2 diamond core to a maximum depth of 470.5m, intersecting mainly massive,
magnetite rich, porphrytic syenite with occasional bands of calc silicate alteration. The drill
hole includes a zone of intense shearing, quartz veining and alteration from 408.0 m to
440.0 m
The upper portion of RD-DD2 intersected massive, extremely corse grained, magnetiterich
porphrytic syenite that contained occasional bands of sulphide-rich calc silicate
alteration. These bands of alteration ranged in thickness from a few centimetres thick up to
half a metre in places and contained mainly pyrite with some minor asenopyrite.
The zone from 408 to 423m consists of a sheared, chloritised rock (in parts) with intense
centimetre thick quartz and quartz carbonate veining parallel or sub parallel to the core axis.
This zone contains some disseminated pyrite in both groundmass and in the quartz/quartz
carbonate veins.
From 423m to 440m, the core consists of intensely brecciated and altered quartz-feldspar
syenite. There is evidence of partial re-melting and multiple phases of fluid flow through the
rock. Sections of the core contain minor to moderate amounts of sulphide, mostly in the form
of pyrite as well as a dark mineral along the vein edges, samples of which have been
submitted for petrology.
Assay results from selected bits of drill core are only slightly anomalous in copper and zinc
with no significant results returned. .InterMet is currently undertaking petrophysical
measurements (density and magnetic susceptibility) of the core to remodel the remaining
holes at Red Dam. The drilling failed to adequately resolve the source of the major gravity
feature. The presence of zones of calc-silicate alteration and chloritic alteration, zone of
intense brecciation and quartz veining all suggest a major hydrothermal event and InterMet
will be drilling a deep diamond holes at Salt Creek and Lake Edge in February to test these
untested significant gravity features.

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InterMet Resources Limited
Plate 1 Detail view of drill core showing zone of intense quartz veining/flooding and destruction of host
granite (syenite).
Gold and Base Metal Exploration
No work on gold and base metals was undertaken this quarter due to the drilling program
described above. InterMet is planning further surface sampling within several areas of
previously reported gold and base metal anomalism to define drill targets.
Uranium Exploration
Search Exploration for Hindmarsh Resources has completed 10 of the originally planned 16
IP traverses, for a total of 31.2 line kilometres of data (figure 1). The data were collected in
two campaigns using a dipole-dipole configuration. The first campaign, undertaken in late
August and early September 2006, used a 100m transmitter dipole with 100m receiver
dipoles and two long traverses were collected to assess the viability of the technique. After a
positive assessment of the data a further 8 traverses were collected in December of 2006
using a 200m transmitter dipole and a 100m receiver dipole configuration. The increased
size of the transmitter dipole was undertaken to improve the quality of the signal strength for
the deeper dipoles. Figure 2 shows the location of IP Traverses on EL 3467.
Preliminary assessment suggests the presence of a number of significant conductors, the
source of which could be graphite or sulphides.
Further IP work, following up on these anomalies and extending the completed lines and
completing the regional lines, is planned for the next quarter.
These IP surveys will also provide valuable information in the search for base metals within
the Triumph Prospect. Geochemical sampling within this area has reported anomalous
gold, lead and copper values and represents a major exploration target.

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InterMet Resources Limited
697500 mE
700000 mE
702500 mE
692500 mE
695000 mE
6390000 mN
6392500 mN
6382500 mN
6385000 mN
6387500 mN
690000 mE
6390000nW
6389000nW
6388000nW
6387000nW
6386000nW
6385000nW
6390000nE
6385000nE
6383000nE
6389000nE
Figure 2 location of IP traverses over the shuttle digital terrain model (MGA 94 Zone 53) on EL 3467.
Topographic high is the Corunna Conglomerate with potential unconformity-related uranium mineralisation
located at the contact zone between the conglomerate and the underlying basement units.
Coulta Project
(EL 3314, ELA 3671 & ELA 230/06 – 100%, WPC Uranium earning 80% in uranium on
EL 3314 and ELA 230/06)
The project area is prospective for Komatiite hosted nickel, Volcanic Hosted Massive
Sulphide, Archaean orogenic gold and Palaeochannel Hosted Rollfront Uranium
Nickel, Gold and Base Metal Exploration
The first stage of the PACE drilling program on EL 3314 was completed on November 29
2006. 22 holes were completed for a total of 609 metres, intersecting basement rocks at
shallow depths (Figure 3). However, due to drilling difficulties, the drilling failed to intersect
any lithologies which would explain the aeromagnetic data due to difficult drilling conditions.
Modeling of the magnetic data showed the magnetic features are between 50-90m deep and
the drilling failed to penetrate to the required depth. InterMet is currently re-drilling up to 10
holes with the aim of intersecting prominent magnetic features outlined by the recent
aeromagnetic survey.
InterMet interprets these features to be part of the Archaean greenstone sequence
intersected by Werrie Gold to the north of the tenement. InterMet’s drilling of similar
magnetic features in the Mount Hope area intersected a sequence of mafic and felsic

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InterMet Resources Limited
seafloor volcanics with interlayered magnetite rich pelitic sediments. These rocks are
termed the Hall Bay Volcanics and are considered prospective for volcanic hosted massive
sulphide and gold deposits. The second phase of drilling will be completed by mid-February
with results expected by end of March.
Results from the first drilling program include:
Hole COU003 - 51 ppm Ag 38-41m
Hole COU006 - 481 ppm Cu (5-6 m); 324 ppm Zn (5-6 m); 1076 ppm Co (6-10 m)
Hole COU009 – 3.9 ppb Au (8-12 m)
The second drilling program will include extending the depth of COU003 and COU006.
COU003 bottomed in magnetite and pyrite-bearing granitic rock and hole COU006 was
located in the closure of a prominent fold closure on the new aeromagnetic data.
Figure 3 Location of holes from Coulta Drilling program
Uranium Exploration
Two holes (COU001 and COU002) intersected relatively thick sequences of oxidized and
reduced sands with interlayered carbonaceous and pyritic sediments, indicating good
potential for rollfront uranium. These two holes are located within the Cummins
Palaeochannel and samples will be submitted for uranium analysis by InterMet’s joint
venture partner, WCP Uranium Ltd.

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InterMet Resources Limited
Cocata Project
(EL 3462 and 3463 – InterMet 100%, Uranium Equities Ltd earning 80% in
palaeochannel hosted and unconformity-related uranium; Silver Swan Group earning
80% in all minerals with the exception of palaeochannel hosted and unconformityrelated
uranium; ELA 690/06 )
The project area is prospective for Rollfront Uranium, IOCG and Orogenic Lode Gold
Uranium Exploration
Uranium Equities Ltd (UEL) together with Silver Swan Group (SSG) are planning a 1 km x
1km grid gravity survey over most of the Cocata Project. The gravity survey is aimed at
delineating the palaeochannels within the project area and to aid in determining drilling
targets. Following a review of the gravity data, UEL plan to drill several traverses across the
palaeochannels in April 2007.
Exploration by Uranium Equities Ltd will also focus on assessing the unconformity-style
uranium mineralization potential at the base of the Mesoproterozoic rocks (Blue Range
Beds). With the addition of a new gravity dataset, modelling of the basement will be
undertaken with a view to isolate areas where the target horizon is most shallow and
accessible for drilling. No examples of unconformity-style uranium are yet known from the
Gawler Craton, but, the prospectivity of this region for this style of mineralization has
recently been recognized by PIRSA and others including Afmex and SXR Uranium One.
Gold and IOCG Exploration
The above mentioned gravity survey is also aimed at providing potential IOCG targets. The
current regional gravity is poor with stations approximately 7 km apart. Regional
aeromagnetic data show this area has multiphase Hiltaba Suite intrusives, an important
associate for IOCG targets.
ELA 690/06
InterMet has applied for a new tenement to add to its uranium properties. However, Iluka
Resources have also applied for the same tenement. ELA 690/06 is approximately 700 km2
and is centred on Mount Wedge and is located adjacent to EL 3462 (Figure 4). Mount
Wedge is a prominent topographic feature and is composed of Mesoproterozoic Blue Range
Beds. The Blue Range Beds are a sequence of conglomeratic sandstones which
unconformably overlies interpreted Archaean basement. The Blue Range Beds were
deposited in the east-west trending Itildoo Basin during a major tectonic extensional event
during the waning stages of the Hiltaba Suite/Gawler Range Volcanic tectonothermal event.
This event is one of the major ore forming events on the Gawler Craton producing IOCG
deposits at Olympic Dam and Prominent Hill, as well as gold-only deposits at Tunkillia,
Earea Dam and Barns.

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InterMet Resources Limited
Figure 4 Location of ELA 690/06 and InterMet’s Cocata Project
InterMet believes that the environment is right for unconformity-related uranium
mineralization. The Archaean basement rocks contain beds rich in carbonaceous material
providing a suitable trap site while the Blue Range Beds contain clasts of Gawler Range
Volcanics which are moderately enriched in uranium. The Itildoo Basin has undergone
subsequent tectonic movement in the Permian Period (some several hundred million years
ago) producing the Polda Basin, a deep sedimentary basin extending across central Eyre
Peninsula.
Significant elements important for the formation of unconformity-related uranium systems
include:
1. a regional redox interface corresponding broadly to the unconformity separating an
oxidised sedimentary pile from C and/or Fe2+ rich reductants in or near the basement;
2. sources of oxidised (high SO4 2-/H2S, evaporate interacted, moderate to high salinity)
fluids in/above the sedimentary basin succession. Such fluids may transport numerous
components and their progressive interaction with reductants may give rise to
characteristic geochemical and mineralogical patterns at deposit and broader scales;
3. linked fault systems operative during sedimentary basin inversion or subsequent
compression;
4. the mechanical contrasts of the basement with the sedimentary cover package;
5. uranium-enriched rocks in the basement and/or in cover sediments and volcanics ( see
Figure 5)
(From Unconformity-related uranium systems: Downunder and over the top by V J Wall – source
http://www.earth2006.org.au/papers/extendedpdf/Wall%20Vic.pdf)

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InterMet Resources Limited
Figure 5 Schematic cross section illustrating essential elements of unconformity-related uranium
mineralization (Source http://www.earth2006.org.au/papers/extendedpdf/Wall%20Vic.pdf)
The Itildoo Basin contains most if not all of the above criteria and has not been extensively
tested for unconformity-related uranium mineralization.
Tertiary sediments within the Polda Basin are considered prospective for sandstone hosted
rollfront uranium mineralization. Previous company drilling for coal within the Polda basin
has intersected a thick sequence of interbedded sands and lignites. These sediments have
not been extensively tested for uranium mineralization.
ELA 690/06 is also considered prospective for Archaean VHMS (lead-zinc-silver) and gold
mineralisation. Previous groundwater sampling east of Mount Wedge produced significant
zinc anomalies which have never been followed up. Recent drilling to the south by Lynch
Mining has reported anomalous zinc associated with the Archaean Hall Bay volcanics.
InterMet plans to undertake a program of regional surface sampling in the vicinity of these
zinc anomalies followed by a program of aircore drilling aimed at testing the basement
rocks.

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InterMet Resources Limited
WATSON Project
(EL 3313 and 3323, ELA 379/06 – InterMet 100%, Uranium Equities Ltd earning 80% in
uranium; Silver Swan Group earning 80% in all minerals with the exception of
uranium)
Project area is prospective for Rollfront Uranium, Nickel and Gold
Uranium Exploration
Two recent groundwater drilling programs, supplemented by an airborne EM survey, have
assisted in defining the palaeochannel and provided valuable geological information on the
stratigraphy of the palaeochannel. There has been limited reconnaissance exploration for
uranium in this region, but the fundamental geological attributes of uranium-rich source
rocks, permeable sedimentary pathways such as buried palaeochannels and potential
reducing sediments make this area an attractive target. Exploration by Uranium Equities will
comprise palaeochannel mapping using remote sensing techniques mentioned above, a
review of all geophysical and geological data followed by drilling.
Southern Gawler Range Volcanic Project
(EL 3461, 3598 and 3612)
Project area is prospective Olympic Dam Cu-Au-U and Orogenic/Epithermal Gold
Gold Exploration
InterMet is currently assessing results from two previous calcrete sampling programs on EL
3461 with a view to further calcrete sampling to define drill targets.
IOCG Exploration
InterMet is planning a detailed gravity survey over all 3 areas. InterMet has requested
Aboriginal heritage clearance for Lake Acraman to enable a detailed gravity survey.

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InterMet Resources Limited
Garford Project
(ELA 683/06)
The project area has potential for Archaean Lode Gold (Challenger style)
ELA 683/06 is located on the northern Gawler Craton and covers an area of approximately
351 sq km (Figure 6). The main mineral sought is gold hosted in the Archaean Christie
Gneiss similar to Challenger gold deposit located approximately 40 km to the south.
There has been a lack of exploration within the northern part of this prospective tenement
which is located within the Tallacootra Conservation Park (Figure 7). Previous drilling by
Goldstream/CRA intersected similar lithologies found in the vicinity of Challenger to the
southwest of the tenement and these units on the aeromagnetic data appear to trend into
the tenement. A prominent circular magnetic feature is located in the northern part of the
tenement and potentially represents an IOCG target related to regional deformation on the
Kararai Fault Zone.
InterMet’s exploration program upon granting of the Licence includes:
1. Review previous company exploration including data compilation
2. Purchase aerial photography for area
3. Review existing calcrete data
4. Field visit to inspect access and reconnaissance mapping of regolith to test check
effectiveness of calcrete sampling
5. Undertake calcrete sampling on a 800 m x 800m grid within areas not covered by
existing calcrete sampling
6. Follow-up calcrete program if results warrant
7. Possibly a small gravity survey over prominent magnetic feature in the north of
tenement – possible IOCG target
Figure 6 Location of ELA 683/06