NORTHERN TERRITORY GOLD MINES N.L. EXPLORATION LICENCE 8069 HORNERS CREEK NORTH FIRST ANNUAL REPORT - FOR YEAR ENDING 26/4/94 REPORT NUMBER: NTGM/8069/1 Prepared by: AJ Hosking AJ Hosking and Associates Pty Ltd Darwin October 1994 TABLE OF CONTENTS Page SUMMARY INTRODUCTION LOCATION AND ACCESS SURFACE TENURE PHYSIOGRAPHY REGIONAL GEOLOGY LOCAL GEOLOGY KNOWN MINERALISATION PREVIOUS GEOLOGICAL STUDIES AND EXPLORATION ACTIVITIES EXPLORATION CRITERIA WORK COMPLETED IN YEAR 1 OF TENURE EXPENDITURE STATEMENT FOR YEAR 1 PROPOSED EXPLORATION PROGRAM AND BUDGET FOR YEAR 2 REFERENCES APPENDICES 1. NTGS MINE DATA SHEETS FIGURES Figure 1 Location Figure 2 Physiographic and Cultural Features from Division of National Mapping Figure 3 Aerial Photograph of Licence Area Figure 4 Soil Types from Hooper (1969) Figure 5 Vegetation Types from Story (1969) Figure 6 General Geology of the Central Part of the Pine Creek Inlier from Nicholson and others (1994) Figure 7 Stratigraphy of the Central Part of the Pine Creek Inlier from Nicholson and others (1994) Figure 8 Regional Geology of the McKinlay River Area from Stuart-Smith and others (1986) Figure 9 Aeromagnetic Contours (BMR) from Goodeve (1961) Figure 10 Aeromagnetic Contours (Billiton) from Mackay (1991, 1992) Figure 11 Highlights of Previous Exploration from Mackay (1992) SUMMARY The licence was granted to Northern Territory Gold Mines N.L. on 27/4/93 for a period of six (6) years. The licence area contains low-grade metasediments and possible metavolcanics of Palaeoproterozoic age which have been folded strongly and intruded in at least two localities by pro-orogenic dolerite. Research and data compilation comprised the main exploration activities in the first year of tenure. All data were processed digitally per a Geographic Information System. Open-file records of Commonwealth and Territory government agencies were the main sources of data. A considerable amount of historical geological and exploration data was processed. The activities in the first year have demonstrated that subsequent exploration should be focussed upon structural targets with particular emphasis given to soil-covered areas. INTRODUCTION Exploration Licence (EL) 8069 of 36 one minute by one minute graticular blocks was granted to Northern Territory Gold Mines N.L. (NTGM) by the Northern Territory Department of Mines and Energy (NTDME) on 27/4/93 for a period of 6 years. The first licence year expired on 26/4/93. The licence area is one of 11 comprising the McKinlay River project area of NTGM. The main administrative details of the licences are provided in Table 1 below. Table 1 Details of McKinlay River ELs EL No. of Date of Term Expenditure Title no, blocks grant (years) commitment year 7155 4 05/12/90 6 $ 8000 4 7674 17 31/03/92 6 $ 5000 3 8055 9 27/07/93 6 $20000 1 8056 14 15/09/93 6 $30000 1 8069 36 27/04/93 6 $35000 1 8161 1 20/09/93 6 $ 5000 1 8170 42 16/07/93 6 $35000 1 8184 62 10/12/93 6 $30000 1 8228 24 31/12/93 6 $23000 1 8424 34 24/12/93 6 $20000 1 8425 3 24/12/93 3 $10000 1 Transfers of the title for ELs 7155 and 7674 from the original holder, Robert Biddlecombe were approved by NTDME on 29/10/93. Statutory areal reductions also have occurred as follows: EL 7155 - 15 blocks originally ; first reduction 5/12/92 with 8 blocks retained ; second reduction 17/1/94 with 4 blocks retained EL 7674 - 34 blocks originally ; first reduction 15/7/94 with 17 blocks retained The total number of blocks in the project area is 246 of which EL 8069 comprises approximately 15 per cent. The initial expectation of the company was that a very substantial field program in the project area would have been completed in the 1994 dry season, including a substantial component for EL 8069. However, unforseen problems with the public float of NTGM's parent company, Australian Gold Mines No Liability (AGM) on the Australian Stock Exchange caused major delays and difficulties in funding the proposed exploration program. Consequently, only research, administration and data management activities have occurred in Year 1. Considerable time, effort and expenditure has been devoted to digitising relevant technical data and establishing a Geographic Information System (GIS) for ongoing storage, processing, interpretation and presentation of such data. per Ekos Research (NT) Pty Limited of Darwin. A small area within the EL is excluded from tenure. This area is covered by 3 Mining Leases held by prospectors over the old McKinlay (Hardies) gold workings. Details are as follows: MLN 808 2.02 ha held by Public Trustee of NT, Betty Gardiner, Eric John Gardiner (1/3 each) granted 9/8/74 for a term of 21 years renewal applied for on 12/9/94 for a further term of 10 years MLN 821 8.09 ha held as per MLN 808 granted 24/5/77 for a term of 21 years, expiring 31/12/97 MLN 869 2.02ha held as per MLNs 808, 821 granted 16/6/80 for a term of 21 years, expiring 31/12/2000 The main exploration target of the company is large-tonnage, low-grade open-pittable gold mineralisation similar to that which occurs at major deposits at Union Reefs and Mount Todd. The potential for high grade gold deposits amenable to underground mining, and for base-metals deposits also will be assessed routinely during exploration. This report contains details of the geology of the licence area, the results of previous exploration plus the research and data management activities which have occurred in Year 1 and part of Year 2 (to 30/9/94). No sacred/significant sites are registered or recorded with the Aboriginal Areas Protection Authority. LOCATION AND ACCESS The location of EL 8069 is shown in Figure 1. The area occupied by the other ELs which with EL 8069 comprise the company's McKinlay River project area also is shown. The licence area occurs in the southwest part of the total area which is held. The licence area is situated approximately 50 km northnorthwest of the township of Pine Creek. Vehicle access to the area is gained most conveniently from the south via the Stuart Highway, thence via the good, unsealed road adjacent to the old railway line and thence via the good, unsealed Burrundie Siding - Mount Wells - Mount Harris road. Access can be gained also from the west via an approximately east-west track between Ban Ban Springs homestead and the McKinlay Gold Mine. The mine workings are situated near the eastern boundary of the licence area. However, access from the west is complicated by the fact that, for much of its route, this track passes over a black-soil plain which is difficult, if not impossible, to traverse by vehicle in the wet season (particularly over the central portion of the licence area between Compass Creek in the northwest and McKinlay River in the east). SURFACE TENURE The licence area lies wholly within Ban Ban Springs Perpetual Pastoral Lease 1111 (NT Portions 695 and 1344). This property supports beef raising. PHYSIOGRAPHY The principal physiographic and cultural features of the licence area are shown in Figure 2. The area is dominated by the drainage course of the McKinlay River and by two of its tributaries, Horners Creek and Compass Creek. The two creeks drain from the south and west respectively. The latter creek rises at the north-south drainage divide between the McKinlay and Margaret rivers as shown by McGowan (1989). Numerous, permanent waterholes occur along Compass Creek and both along and between Horners Creek and McKinlay River. A major physiographic study of the region bordered by the Alligator and East Alligator rivers was undertaken by CSIRO in the period 1965 - 1969 This study covered the licence area. Several authors, notably Williams (1969), Story (1969) and Williams and others (1969), contributed papers to a major publication which is the principal source of physiographic data in this report. Additional data have been obtained from the Vegetation Map of the NT published by the Conservation Commission of the NT ((Wilson and others, (1991)). The distributions of soil and vegetation types are shown in Figures 3 and 4. Two major land units are recognised by Williams and others (1969). These are the dissected foothills and alluvial floodplains. The former unit is characterised by, low hills and rubble-covered rises formed by metasedimentary rocks with intervening alluvial flats. Remnants of strike ridges also are present. Woodland and/or stunted woodland (Box and Bloodwood) occur on the hills and rises with a grassland under-story with grassland on the flats. Soils vary from leached, skeletal types to yellow, loamy types on the elevated areas to alkaline types on the flats. The latter unit is marked by floodplains, deeply incised channels, levees and billabongs. Sands and silts occur on floodplains and in channels while areas of loamy to sandy alkaline and/or acid soils also are present. Paperbark (Melaleuca) woodland and open savannah grassland are distinctive features of this land unit. The licence area has a monsoonal climate with an average annual rainfall in the order of 1500 mm, with most rain falling in the summer months. Only one waterbore is thought to exist in the licence area and is situated at the McKinlay Gold Mine. REGIONAL GEOLOGY The licence area lies within the Pine Creek Inlier (or Geosyncline). This major tectono-sedimentary unit contains pelitic and psammitic sediments with minor volcanics of Palaeoproterozoic age which developed in a basinal setting on granitic basement of Late Archaean age. The sedimentary pile subsequently was deformed and metamorphosed (mostly to greenschist facies) by the Top End Orogeny which lasted for approximately 180 Ma (1870 - 1690 Ma). Pre-orogenic sills of mafic intrusives and syn- to post - orogenic granitoids intrude the metasedimentary and metavolvanic rocks. Most granitoids were emplaced in the waning stages of the tectonism. A voluminous literature has developed for the Inlier over more than 50 years commencing with studies by the Aerial, Geological and Geophysical Survey of Northern Australia (AGGSNA) of mine areas and their surrounds. A considerable boost to the geological studies and to exploration followed the discovery of uranium at Rum Jungle in 1948. However, it is beyond the scope of this report to review this literature and only key publications have been referenced, notably those of Walpole (1968), Ferguson (1980), Stuart-Smith and others (1986), Needham and others (1988), Stuart-Smith and others (1993) and Nicholson and others (1994) which are particularly relevant to the licence area and its near surrounds. Geological maps at 1:63,360, 1:100 000 and 1:250 000 scales with accompanying reports produced by Commonwealth and NT government agencies are major components of this extensive database. A vast amount of data has accumulated from base-metal, gold and uranium exploration programs. Studies dealing with specific features of sedimentation, tectonism, magmatism and metallogenesis also have been features of the developing literature. Key references dealing with the mineralisation of metallogenesis of the Inlier are those of Crohn (1968), Needham (1981), Nicholson and Eupene (1984), Nicholson & Eupene (1990), Needham and de Ross (1990), Ahmad and others (1994), Ormsby and others (1994) and Bajwah (1994). In this report, the regional geology and stratigraphic framework proposed by Nicholson and others (1994) are adopted (see Figures 5 and 6). These authors have advocated a three-fold lithostratigraphic subdivision rather than the four-fold subdivision advocated by earlier BMR authors and applied widely in recent years. The significance of rim faults around major granitic bodies also is highlighted by Nicholson and others (1994). Such faults also were postulated by authors reporting on airborne geophysical surveys of the McKinlay River area in the 1960s eg. Goodeve (1961). The licence area contains metasediments of the lower part of the Finniss River Group (Burrell Creek Formation) and metasediments and minor metavolcanics of the upper part of the Frances Creek Group (Mount Bonnie Formation, Gerowie Tuff and Koolpin Formation - comprising the South Alligator Group of earlier BMR authors). However, units of the older Frances Creek Group are believed to be present only in the extreme east and northeast parts of the licence area and to be largely obscured by alluvium of the McKinlay River floodplain. Large, granitic bodies to the near east and south of the licence area (Cullen Bathylith) probably are temporally, spatially and genetically related to the gold mineralisation in the McKinlay River area. The mineralisation at the McKinlay Gold Mine appears to be within the contact metamorphic aureole of the Cullen Bathylith. Pelitic and psammitic metasediments (originally mudstone, siltstone and greywacke) are predominant in the Burrell Creek Formation. The Koolpin Formation consists of pyritic and carbonaceous pelites plus iron-rich chert and iron formation. The Gerowie Tuff consists of felsic tuffs, tuffaceous chert, iron formation and siltstone. The Mount Bonnie Formation has a comparatively lower component of chemical sediments compared with the two underlying units and a comparatively higher psammitic component in the form of greywacke. The metasediments and metavolcanics in the McKinlay River area have undergone two phases of folding. The first phase produced tight to isoclinal, upright folds about NNW - SSW axes while a second, gentler phase produced broad, open folds about east-west axes. A large shear zone of similar trend to the metallogenically significant Pine Creek Shear may be present in the eastern part of the licence area. LOCAL GEOLOGY The licence area contains mainly metapelites and metapsammites of the Burrell Creek Formation plus very limited outcrop of the upper units of the older Frances Creek Group. However, these units occur beneath soil cover in much of the eastern part of the licence area. Tight folding is exhibited by the former, particularly in the northwest part of the area where the strong influence of faulting along the Hayes Creek - Mount Douglas structure (NE - SW) is indicated. Prominent linear features of various orientations also are evident in the northwest part. Zamu Dolerite, presumably as sills, crops out in two localities to a very limited extent. The westernmost outcrop has a north-south trend and is bisected by a prominent quartz vein. This vein appears to be the eastern extension of a large vein trending WNW - ESE to NW - SE which is present approximately 6 km to the west. The outcrop of Zamu Dolerite in the extreme south of the area trends NNW - SSE as does outcrop of Gerowie Tuff in the near vicinity (close to the east bank of the McKinlay River). A small ridge of Mount Bonnie Formation immediately adjacent to the McKinlay River hosts the McKinlay Gold Mine, although much of the northeast part of the licence area probably is underlain by this unit. The significance of a prominent north-south linear feature also present in this part of the area is unknown. The ridge hosting the mineralisation may mark an anticlinal hinge line along which extensive shearing has occurred. White (buck) quartz veins and blows are common in the area. Examples occur to the near northeast and northwest of the McKinlay Gold Mine. The effects of contact metamorphism due to the Cullen Granite have been reported from the McKinlay Gold Mine locality. Geophysical evidence indicates the granite underlies most of the complexly folded metasediments, metavolcanics and Zamu Dolerite to the east of the licence area. KNOWN MINERALISATION The former Mount Wells Policy Reserve occupied part of the licence area. This reserve, which was created to encourage small-scale mining, was revoked in May, 1988. The old McKinlay (Hardies) Gold Mine is located near the eastern boundary of the licence area. Three Mining Leases (MLNs 808, 821 and 869) cover the mineralisation which occurs in quartz veins exposed in a low, narrow ridge of Mount Bonnie Formation immediately adjacent to the west bank of the McKinlay River. This ridge extends over a distance of approximately 1.2 km on a NNW-SSE trend. The mineralisation here and at the Ringwood workings approximately 25 km to the north may be on the same structural trend (fault or shear zone?) A substantial amount of work was carried out in 1974 by the former Mines Branch of the Department of the Northern Territory on behalf of the leaseholder of the time. The results of this work (mainly core drilling and check sampling of old costeans) are summarised by Newton (1974). The core drilling was designed to test the possible continuation of the mineralisation at a depth of approximately 30 m beneath the surface workings and over a strike length of approximately 250 m. Four holes were drilled and both core and sludge sampled and assayed. However, gold values did not exceed 1 ppm. Zinc values to 0.7% also were recorded in sludge samples from one hole. Subsequent check channel sampling in old costeans failed to confirm the gold values obtained during earlier investigations of the prospect by the Aerial, Geological and Geophysical Survey of Northern Australia (AGGSNA, Hossfeld, 1940). The mine is reported to have opened in 1938 and to have produced 127t of ore grading 3.28 glt in the period 1938 - 1939 ((Wygralak, (1983)). Significant geological findings of the core drilling by Mines Branch were: the presence of sills of amphibolite (presumably Zamu Dolerite) extensive fracturing and quartz veining suggesting the presence of a major shear zone (and cross-faults?) the strongly graphitic and pyritic nature at depth of fine-grained metasediments in the mineralised zone the suggestion that the mineralisation lies within the contact aureole of a granitic body, based on the presence of chiastolite and chloritic veinlets the suggestion that the surface enrichment of gold which is evident is extremely patchy The NTDME Mine Data Sheet for the mine is provided in Appendix 1 (Item 1). While the mineralisation appears not to be economic significance, the possibility exists that it is a minor expression of a larger, potentially mineralised structure which warrants assessment. Other minor, mineral deposits which occur in close proximity to the licence area are: Rosemary Tin Mine; 3.5 km ESE of McKinlay Gold Mine; quartz-cassiterite-pyrite mineralisation in narrow veins (see Appendix 1, Item 2) Mavis Tin Mine; 8.5 km southwest of McKinlay Gold Mine; mineralisation of similar type to that at Rosemary Tin Mine (see Appendix 1, Item 3) unnamed lead show; 3.5 km ENE of McKinlay Gold Mine; quartz-galena-pyrite mineralisation in narrow veins (see Appendix 1, Item 4) All occurrences are of vein type and have close geographic and genetic relationships with the Cullen Granite, prominent outcrop of which occurs , at its closest point, approximately 10 km east of the northeast corner of the licence area. PREVIOUS GEOLOGICAL STUDIES AND EXPLORATION ACTIVITIES The central part of the Pine Creek Inlier has been the focus of many geological studies by Commonwealth and Territory government agencies and of substantial mineral exploration in recent years. The latter activities have occurred mainly in the late 1980s and early 1990s and have been concentrated upon geochemical sampling (stream sediment and soil principally), being directed towards the search for one or more of gold, base-metals and uranium. Gold exploration has been the most recent. Small-scale production of tin has occurred from small mines to the east and south of the licence area in past years, notably from Mount Wells (to the south). A feature of the past exploration and mining activity was the creation of the Mount Wells Policy Reserve in 1964, with subsequent revocation in May 1988. This reserve was created to foster small-scale activity by prospectors. A government battery operated at Mount Wells to assist this cause. Significant aspects of the past government work are: work by the Aerial, Geological and Geophysical Survey of the Northern Australia (ASSSNA) at the McKinlay Gold Mine : Hossfeld (1940) core drilling by Mines Branch of the Department of the Northern Territory: Newton (1974) 1:63 360 scale geological mapping by the BMR in the 1950s and 1960s: eg Goodeve (1966) 1:00 000 scale geological mapping by the BMR in the 1980s: Stuart-Smith and others (1986) detailed geological and metallogenic studies by the BMR of the Cullen Mineral Field: Stuart Smith and others (1993) metallogenic mapping by the NTGS of the Pine Creek 1:250 000 mapsheet area: Ahmad and others (1994) Geological and geophysical plans provided in this report are based on BMR publications as listed above. Detailed mineral exploration has been undertaken principally by; Newmont Australia Ltd: EL 6170, Compass Creek Billiton Australia: EL 6443 (Compass Creek), EL 6445 (Hardies South) and EL 6990 (Horners Creek) Hawk Nest Gold Pty. Limited: EL 4838 (Hardies) Poseidon Exploration Limited also undertook a mall program on two small blocks of Mineral Claims (Jasons Peak and Kamas Cauldron) just outside the present area of EL 8609. Newmont (Wall (1989) concentrated upon stream-sediment, soil and rock sampling with highest values recorded of less than 3 ppb, 3.2 ppb and 1.2 ppm respectively. All were deemed non-significant. The value of 1.2 ppm was obtained from a sample of ferruginous quartz collected from the prominent quartz vein which trends WNW - ESE and extends into the licence area in the south. Stream-sediment and soil samples were collected in bulk eg 5 kg and assayed by conventional cyanide leach techniques with low detection limits. Attention was directed mainly to sulphidic (limonite ex-pyrite at the surface) units in the Burrell Creek Formation, to the Zamu Dolerite and to quartz (( haematite) veins. Billiton Australia ((Mackay (1991, 1992) - see also Figure 11)) utilised both geochemistry (mainly soil) and geophysics in its exploration program on its three ELs. Detailed high-quality aeromagnetic data were obtained and interpreted by the company as the product of a multi-client airborne survey flown by Aerodata in 1989. The company also reprocessed and interpreted earlier BMR aeromagnetic data. Soil sampling programs were based upon initial traverses and follow-up gridded areas, mostly in the western portion of the present area of EL 8069. Ground magnetometry on grids also was undertaken in two subareas. Rock sampling was utilised for follow-up work on low-order soil anomalies. Hawk Nest Gold ((Milligan (1990)) sought extensions of the McKinlay River gold mineralisation per stream-sediments, soil and rock sampling and RAB drilling. Two Mineral Claims were pegged and held for a period to cover the possible northern extension of the mineralisation. Rock-ship values for gold up to 4.72 ppm justified the claim pegging. Anomalous lead and arsenic values, supported by one anomalous soil value, to the south of the mine area were followed up by RAB drilling without success. Poseidon (Price, (1993)) undertook limited rock-chip sampling of gossanous quartz and limonitic (ex-pyritic) Burrell Creek Formation. A maximum gold value of 0.39 ppm from within MCN 1856 was obtained. Elevated valves for tin were obtained also. The main conclusions which can be drawn from the previous exploration are: sulphidic units are present within the rock units of the licence area but have produced very limited evidence to date of their potential economic significance linear magnetic features within poorly outcropping Frances Creek Group may represent dyke-filled fractures rather than pyritic-pyrrhotitic beds; alternatively such features may represent magnetite-bearing intervals in the metasediments hornfelsing of metasedimentary rocks has occurred as a consequence of proximity to the Cullen Granite quartz veins are mainly of the white (buck) type with only limited evidence for pyritisation most anomalous gold values are either single-sample or not confirmed by later sampling and not significantly greater than background ranges EXPLORATION CRITERIA The criteria being observed by NTGM in its exploration of the area are: principal focus upon subareas of non-outcrop given that past exploration activities have had a strong geochemical focus (soil and/or rock sampling) upon outcropping subareas with negative results delineation of structurally complex subareas using available detailed aeromagnetic data, satellite imagery and colour aerial photography verification or otherwise of the possible existence of a major shear zone trending NNW - SSE and connecting the old McKinlay and Ringwood gold workings (and possibly determining the course of the McKinlay River for a considerable distance?) determination of the areal extents of the Zamu Dolerite and upper units of the Frances Creek Group in the south and east parts of the licence area respectively evaluation of the significance, so far mineral prospectivity is concerned, of large granitic intrusives to the near east and south of the licence area (and particularly the contact aureoles of these bodies) sampling of pyritic and graphitic rock units in the Burrell Creek Formation and in units of Frances Creek Group sampling of tourmalinised rocks, if present The principal aim of the exploration program in Year 2 will be to locate drilling targets in appropriate structural settings via a combination of detailed geological mapping (as outcrop permits), soil and/or rock sampling and ground magnetometry. given the extensive cover of black soil within the licence area, the use of auger and/or RAB drilling to obtain representative samples is foreseen. WORK COMPLETED IN YEAR 1 OF TENURE The following activities were undertaken in Year 1: acquisition and digitising of colour aerial photography for the McKinlay River project area, which includes the licence area research of available geological and exploration-related data, mostly available in the open-file records of NTDME, in connection with compilation of the prospectus for Australian Gold Mines NL (AGM), the parent company of NTGM ; this work was carried out by Dr. G.R. Orridge of Geonorth Pty. Ltd., Darwin and submitted as the Independent Geologist's Report for the prospectus ((Orridge (1994)). The prospectus, which was issued in April 1994, subsequently was withdrawn in June 1994 title management by principals and agents of NTGM based in Perth, Melbourne and Darwin establishment of a Geographic Information System (GIS) with subsidiary databases to manage all data generated by NTGM for its NT titles; this work was carried out by Mr. R. Fernandez of Ekos Research (NT) Pty. Limited assessment of options to obtain existing geophysical data (principally the aeromagnetic type) and satellite imagery in digital format to allow image processing This work has extended into the early months of the second year of title and included an extension of the research activities with work by AJ Hosking of AJ Hosking and Associates Pty. Ltd. As a consequence of the failure of the public float of AGM, alternative sources of funding for NTGM's exploration program in the NT have been sought. EXPENDITURE STATEMENT FOR YEAR 1 $ Darwin Office - Consultants 6823 Tenement Costs 679 Aerial Photography 1922 Data Acquisition and Compilation 336 Geological Consultants 6946 GIS Management 1658 Travel and Accommodation 2811 Administration Overheads 2315 $23,490 The expenditure incurred in Year 1 was less than the covenant. Accordingly an application for a Variation of Condition has been made. Three geological consultants were utilised for varying periods in connection with preparation of the Prospectus for AGM, title administration and advice re programs and budgets for the title. PROPOSED EXPLORATION PROGRAM AND BUDGET FOR YEAR 2 Given the generally disappointing nature of the results of past exploration activities within and/or immediately adjacent to the licence area, the exploration philosophy and program for Year 2 will be based upon the following key aspects: completion of a structural interpretation of the area using colour aerial photographs plus images prepared from digital Thematic Mapper and aeromagnetic data rock-chip, soil and ground magnetic traverses across prospects delineated by the structural interpretation with auger and/or RAB drilling as necessary to sample beneath black soil detailed geological mapping of the prospects (subject to outcrop limitations) Most emphasis will be placed upon: assessment of the prospectivity of soil-covered areas delineation of faults, shear zones and folds (particularly the surface traces of anticlinal hingelines) verification (or otherwise) of the existence of a possible fault or shear zone between the McKinlay Gold Mine and the Ringwood gold workings to the north verification (or otherwise) of the existence of a cross-cutting structure (NE-SW) connecting the Hayes Creek Fault and the fault marking the southern boundary of the outlier of Kombolgie Formation in the Mount Douglas locality (this structure may explain the complex folding observed in the northwest portion of the licence area) determination of the areal extents of the units of the Frances Creek Group and the Zamu Dolerite in the eastern and southern portions respectively of the licence area delineation of magnetic units within the Burrell creek Formation and of any major discontinuities or aberrations associated with them assessments of graphitic - pyritic and tourmalinised rocks as potential hosts to mineralisation Expenditure is envisaged as follows: $ Geology - detailed mapping, supervision, data interpretation 4000 Geophysics - computer imaging of TM and aeromagnetic data, ground magnetic traversing 9000 Geochemistry - soft and rock-chip sampling (traverses), assaying 6000 Gridding 2000 Information Management (per GIS) 3000 Title Management 3000 27000 Overheads (10%) - Darwin and Perth offices 2700 Say $30,000 REFERENCES Ahmad, M., Wygralak, A.S., Ferenczi, P.A. and Bajwah, Z.U., 1993: Explanatory Notes and Mine Data Sheets, Pine Creek. Northern Territory Geological Survey, Metallogenic Map Series, Sheet 52-8. Bajwah, Z.U., 1994: Mineralogy and magnetic susceptibility of the Proterozoic granites, related to gold mineralisation, Pine Creek Geosyncline, Northern Territory, Australia. In The AusIMM 1994 Annual Conference, Darwin, Proceedings, 57 - 66. Crohn, P.W., 1968: The mines and mineral deposits of the Katherine - Darwin region. Bureau of Mineral Resources, Australia, Bulletin 82. Ferguson, J., 1980: Metamorphism in the Pine Creek Geosyncline and its bearing on stratigraphic correlations. In Ferguson, J. and Goleby, A.B., (Editors) Uranium in the Pine Creek Geosyncline. International Atomic Energy Agency, Vienna, 91-100. Goodeve, P.E., 1966: Darwin/Pine Creek contract aeromagnetic survey, Northern Territory 1963. Bureau of Mineral Resources, Australia, Record 1966/101 (unpublished). Hooper, A.D.L., 1969: Soils of the Adelaide - Alligator area. In Lands of the Adelaide - Alligator area, Northern Territory, CSIRO, Melbourne, Land Research Series, 25, 95 - 133. Hossfeld, P.S., 1940: The McKinlay Gold Mine, Pine Creek district. Aerial, Geological and Geophysical Survey of Northern Australia, Northern Territory, Report, 46. McGowan, R.J., 1989: The hydrogeology of the Pine Creek mining region. Power and Water Authority, Explanatory Notes for 1:250 000 scale map. Mackay, C.R., 1991: Exploration Licence 6990 - Horners Creek. Final report for the period 27th September, 1990 to 6th September, 1991 for Billiton Australia. Northern Territory Department of Mines and Energy, Open-File Company Report, CR 91/479 (unpublished). Mackay, C.R., 1992: Exploration Licence 6443 - Compass Creek. Final report for the period 22nd March, 1989 - 12th February, 1992 for Billition Australia. Northern Territory Department of Mines and Energy, Open-File Company Report, CR 92/124 (unpublished). Mackay, C.R., 1992: Exploration Licence 6445 - Hardies South. Final report for the period 22nd March 1989 to 12th February, 1992 for Billiton Australia. Northern Territory Department of Mines and Energy, Open-File Company Report, CR 92/123 (unpublished). Milligan, I.M., 1990: Exploration Licence 4838 "Hardies", Mount Wells district, Northern Territory. Report on relinquishment for Hawk Nest Gold Pty. Limited. Northern Territory Department of Mines and Energy, Open-File Company Report, CR 90/055 (unpublished). Needham, R.S., 1981: A tabulated presentation of metallic mine and prospect data for the Pine Creek Geosyncline. Bureau of Mineral Resources, Australia, Record, 1981/39 (unpublished). Needham, R.S., Stuart-Smith, P.G. and Page, R.W., 1988: Tectonic evolution of the Pine Creek Inlier, Northern Territory. Precambrian Research, 40/41, 543 - 564. Needham, R.S. and de Ross, G.J., 1990: Pine Creek Inlier - regional geology and mineralisation. In Hughes, F.E., (Editor), The AusIMM, Melbourne. Geology of the Mineral Deposits of Australia and Papua New Guinea, 727 - 737. Newton, A.W., 1974: The McKinlay Gold Mine NT, Results of diamond drilling. Northern Territory Geological Survey, Report, GS 74/17 (unpublished). Nicholson, P.M., and Eupene, G.S., 1984: Controls on gold mineralisation in the Pine Creek Inlier. In the AusIMM 1984 Annual Conference, Darwin, Proceedings, 377-396. Nicholson, P.M. and Eupene, G.S., 1990: Gold deposits of the Pine Creek Inlier. In Hughes, F.E. (Editor), Geology and Mineral Deposits of Australia and Papua New Guinea, The AusIMM, Melbourne, 739 - 742. Nicholson, P.M., Ormsby, W.R. and Farrar, L., 1994: A review of the structure and stratigraphy of the Pine Creek Geosyncline. In The AusIMM 1994 Annual Conference, Darwin, Proceedings, 1 - 9. Ormsby, W.R., Nicholson, P.M. and Butler, I.K., 1994: Gold and base metal mineralisation in the central Pine Creek Geosyncline. In The AusIMM 1994 Annual Conference, Darwin, Proceedings, 11-19. Orridge, G.R.,1944: Independent Geologist's Report for Australian Gold Mines N.L. Prospectus (withdrawn). Price, L.A., 1993: Final report on exploration activities: Mineral Claims 1855, 1856, 2012, 2013, 2014, Compass Creek, 24/2/88 to 24/2/93 for Poseidon Exploration Limited. Northern Territory Department of Mines and Energy, Open-File Company Report, CR 93/362 (unpublished). Story, R., 1969: Vegetation of the Adelaide - Alligator area. In 'Lands of the Adelaide - Alligator area, CSIRO, Melbourne, Land Research Series, 25, 114 - 130. Stuart-Smith, P.G., Needham, R.S., Page, R.W., and Wyborn, L.A.T., 1993: Geology and mineral deposits of the Cullen Mineral Field, Northern Territory. Australian Geological Survey Organisation, Bulletin 229. Stuart-Smith, P.G., Needham, R.S., Wallace, D.A., and Roarty, M.J., 1986: McKinlay River, Northern Territory, Bureau of Mineral Resources, Australia, 1:100 000 Map Commentary. Wall, R., 1990: Compass Creek, EL 6170, Northern Territory. 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