Venus Metals Corporation Limited announced the preliminary results of a recent high resolution 50m line spaced aeromagnetic survey on its tenement E15/1796 and ELA 15/1946, located ~60 km east of Marvel Loch. The detailed aeromagnetic and radiometric survey has delineated demagnetised zones along the main magnetic feature that may indicate deep weathering of the REE-enriched monzogranite, and that therefore present favourable targets for clay-hosted REE mineralisation. The survey also identified magnetic features within the ~25 km- long magnetic trend (Anomaly 1) and a nearby ovoid magnetic feature (Anomaly 2) that present priority drill targets for bedrock-hosted REE mineralisation.

Anomaly 2, is an ovoid shaped, zoned magnetic anomaly approximately 2.5km x 3km in size. It is characterised by a strong magnetic aureole surrounding a non-magnetic core. The anomaly includes limited outcrop of monzogranite that is also anomalous in REE with up to 4,365 ppm TREO.

Aircore drilling to target specific demagnetized zones along the regional magnetic highs to explore for thick zones of potential clay- hosted REE mineralisation in the residual weathering zone. Reverse circulation drilling to target bedrock-hosted REE mineralisation associated with monzogranite in two different settings. Application for EIS government co-funded exploration drilling submitted.

Further soil and rockchip sampling to test new radiometric anomalies. The Marvel Loch East Project is located approximately 60km east from Marvel Loch, WA. It is comprised of one granted exploration licence (E15/1796) and four applications (ELAs 15/1944, 15/1946, 15/1947 and 77/2721) for a total area of 283 blocks (828 km2).

The project is considered prospective for rare earth mineralisation with initial soil sampling programs returning up to 6,092 ppm total rare earth oxides. The arcuate and ovoid magnetic highs within granite terrain of E15/1796 are suggestive of a regional- scale magnetite-bearing monzogranite that is enriched in rare earth elements (REE). Rock chip samples from outcropping monzogranite have yielded maximum TREO concentrations of 4,365 ppm in the eastern target area and of 2,292 ppm in the western target area of E 15/1796.

These results are ~10 to 20 times the average crustal abundance for TREO (Taylor & McLennan, 1995). Scanning electron microscopy (SEM) studies and optical microscopy show the monzogranite is dominated by albite, k-feldspar, quartz, biotite, magnetite ± titanite, rutile, zircon, chlorite, apatite and Ca-Fe amphibole. The primary magmatic REE mineral throughout the monzogranite is allanite (Ce,Ca,Y,La)2(Al,Fe+3)3(SiO4)3(OH) along with minor REE-bearing titanite and apatite.

Allanite occurs in association with biotite and magnetite, and the release of REEs from the primary REE host (allanite) in surface samples is favourable for the formation of REE-enriched clays.