Annual Report for period 15 March 2007 to 14 March 2008 Marqua EL 25505

Abstract

This is the first annual report on AusQuest?s 'Marqua' exploration title, EL 25505. This tenement was granted on 15.3.07 for a period of 6 years. The tenement application was made to cover a potential iron oxide - copper - gold target revealed in coincident gravity / magnetics anomalies in new NTGS data. Work during this first year has comprised desktop geoscientific data compilation and evaluation, and a helicopter - assisted gravity survey to infill the NTGS East Arunta gravity data of 2006. This infill gravity survey was completed by Daishsat Geodetic Surveyors over the coincident regional gravity and aeromagnetic anomalies. This survey was at 0.5 km centres infilling the 2 km spaced grid of the East Arunta NTGS Survey. The more detailed gravity data, whilst essentially confirming the coincidence of gravity and magnetic anomalies, suggested that the dense gravity source is centred about 2 km east-southeast of the smaller (2 km) linear east - west magnetic anomaly. The gravity anomaly is much broader than the magnetic anomaly and encompasses it. Various geological explanations can account for the two anomalies, consistent with the limited geological constraints available. A broad haematite alteration envelope in the granite with a magnetite skarn in an abutting metasedimentary unit (as at Carrapateena) is one of the possiblities. A geological mapping and geochemical (rock and regolith) sampling program is planned for the 2007 field season to confirm prospectivity, preparatory to drilling.