Second annual report for the period ending 27 July 2005 EL 1924 Cape Ford Australian Bauxite Project

Abstract

EL 1924 Cape Ford was applied for by Ashton Mining Limited and Ashton Operations Australia Limited (Ashton) on 8th September 1978 and was granted on 28th July 2003. The tenement is located 150 km south southwest of Darwin on the Daly River / Port Keats Aboriginal Land Trust and consequently is processed under the Aboriginal Land Rights Act 1975 (ALRA). This second annual report describes the exploration completed during the second year and includes the drilling, which was completed on 11th August 2005. There was no work completed in the first year due to access negotiations. The project area covers part of Palaeozoic Bonaparte Basin which is potentially lateritized and prospective for bauxite. Exploration was focused at locating bauxite on the large flat area of the Dashwood Plains and included: review of previous exploration; completion of consultation meetings and site clearance surveys; interpretation of existing TM data; establishment of an exploration camp; clearing access for a small drill; drilling 12 auger holes; drilling 14 NQ aircore holes. The results of both the auger and aircore drilling show low alumina values with a maximum of 22.8% Al2O3 with 15 samples over 20% Al2O3. The iron values show a maximum of 66% Fe2O3 in one ferruginous lateritic gravel at 3m depth in hole AC05CF14. In general the assays are very high in SiO2 (>65%) reflecting the quartz rich nature of the protore sandstone.There is minor lateritic development in the profile. In drill hole AC05CF14 a ferruginous layer between 2 to 5m averaged 50% Fe2O3. This layer is also present in the hole AC05CF13 and is interpreted as a ferruginous gravel under the soil. In drill hole AC05CF03 (5-7m) a layer of hard duricrust occurs below the clay layer. The textures in the duricrust show a pisolitic form with brown pisoliths between 3mm and 1cm in size sitting in a hard white matrix. The pisoliths have very thin outer cutins. The assay result for this interval does not suggest that there has been any gibbsite or boehmite precipitation. The interval (5-6m) assays 11.8% Al2O3, 7.4% Fe2O3 and 74.6% SiO2 which is less aluminous than the overlying clay. This has downgraded any possibility of bauxite occurring on the Dashwood Plains. An area in the east of the tenement has not been assessed and a limited programme is planned for year 3. The Mine Management Plan is included in the report.