Annual report for EL 23686 Baines Project, 13 February 2004 to 12 February 2005

Abstract

The Baines project (EL 23686) is located 60 km south of the Victoria Highway, about half way between Amanbidji and Humbert River, in the Gregory National Park in the Victoria River District. The area is considered to be prospective primarily for diamond deposits, though other target concepts are also of interest. The area is underlain by dominantly Neoproterozoic/ Adelaidean sediments of the Wattie, Bullita and Auvergne Groups, capped by areas of lower Cambrian Antrim Plateau Volcanics and laterite. During the initial phase of the EL 23686, work consisted of: Literature research of previous exploration, geological survey and geophysical survey over the EL and surrounding district; data compilation; acquisition and interpretation of departmental geological and airborne geophysical data sets; research on the geology and exploration signatures encountered in the district, including discussion with former Ashton Mining personnel; planning for a field reconnaissance sampling program. This was curtailed because of the closure of the Gregory National Park for the wet season in November 2004. The review of previous work revealed that the sampling density for diamonds in the area was lower than that in many surrounding districts, where some encouragement has been encountered, some draining ultimately from the highlands within the EL. There is little if any recorded sampling in the south eastern sector of the EL. This is probably because of the relative inaccessibility of the area, relatively poor drainage development on the Sturt Plateau area, and the presence of widespread scrubby vegetation cover on that laterite plateau. During the next phase of exploration of EL 23686, the following work will be completed: field geological reconnaissance; reconnaissance stream sediment sampling; analysis by low level scans for 63 elements including precious metals and platinoids; reconnaissance heavy mineral sampling, particularly for diamonds; processing and examination of heavy mineral samples; interpretation of results; should the public listing of the company proceed, detailed magnetic and EM surveys of the target area will be completed, to be followed if warranted by drilling; planning and budgeting. In addition, liaison with other stakeholders in the area will continue. The area mapped as laterite in the Sturt Plateau has a magnetic pattern similar to that attributed elsewhere in the district to Antrim Plateau Volcanics. This would seem to be a complex and extensive accumulation that may contain intrusive components, based on the results of Ashton drilling of similar patterns to the south of the EL. The area of the Sturt Plateau will be prospected in more detail than has previously been attempted. Future exploration will involve the use of geophysical and geochemical techniques to define drilling targets.