Annual Report for EL 10262 for the period 3 December 2001 to 2 December 2002

Abstract

EL's 10262 forms part of the Rand Project, a joint venture between Gutnick Resources N.L. (manager) and Johnson's Well Mining N.L. The Rand Project is based on a new genetic interpretation for the Witwatersrand mineralisation in South Africa. These new hydrothermal models suggest that similar and related styles of mineralisation may be present in other sedimentary basins with similar structural and stratigraphic styles to the Witwatersrand. Following a literature and field based review of potential target basins around the world, the Amadeus and Ngalia Basins were selected for exploration as part of the Rand Project. A literature search of government open file data was completed to review past exploration techniques and methodology. Previous exploration for gold is limited. Exploration involved the application and assessment of regolith studies, structural geology, geochemistry and geophysics. Methods for exploration in weathered and covered areas were investigated and researched by CRC -LEME. An orientation program was designed to determine the best method for geochemical sampling, by comparing areas of known mineralisation to areas where no known mineralisation occurs. A regional stream sediment sampling program was then completed over areas of outcrop in the Glen Helen area. A total of 440 stream sediment samples were taken in the active channels of dry creek beds. Samples were sieved to -4mm and analysed using low level detection BLEG for gold and sieved to -2mm +40# and analysed using ICP-OES or ICP-MS for the multi element analysis. Amdel Laboratories Pty Ltd in Adelaide completed analysis. The best result was 0.65 ppb Au. No high Au BLEG values were obtained during the survey, but statistically anomalous Au values were present. Twenty Base of Slope and thirty-one rock chip samples were also collected in the area. The best rock chip sample result was 0.008 ppm gold using the Atomic Absorption method by Amdel Laboratories.