Annual technical report for the period 20th February 2002 to 19th February 2003

Abstract

EL's 10269 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 with none. A regional stream sediment sampling program was then completed over areas of outcrop in the Illogwa Creek area. A total of 27 stream sediment samples were taken in the active channels of dry creek beds to a density of 1 sample per 5 square kilometers. 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 0.4 ppb Au. No high Au BLEG values were obtained during the survey, but statistically anomalous Au values were present. Two areas were determined as anomalous in the Illogwa Creek area.