Proposed exploration program covering prospecting authorities in Arnhemland section of Northern Territory of Australia

Abstract

Western Nuclear ('Australia') Pty Limited (hereinafter referred to as 'Western') respectfully submits, for the consideration of the Administrator of the Northern Territory, a proposed long-term exploration program for certain areas covered by Prospecting Authorities in the Arnhem Land section of the Territory. United Uranium NL (hereinafter referred to as 'United') is the holder of Prospecting Authorities 1274 and 1301 and, by, virtue of a contract with Harold Brenna, United has agreed to discharge the prospecting obligations required under Prospecting Authority 1443. Western is the holder of Prospecting Authorities 1159, 1160 and 1295. The areas covered by these Prospecting Authorities, (hereinafter referred to as 'AP's'), are shown on the map in the hardcopy of the company report. By virtue of an agreement now being finalized between United and Western, Western will assume the obligation to finance and carry out all prospecting activities required 'under United's AP's 1274 and 1301 and further, Western will' undertake to discharge United's prospecting obligations on AP 1443. Western will, as in the past, continue to finance and conduct the' prospecting activities required in the areas covered by its own AP's. To carry out this program, Western is prepared to spend a minimum of $400,000 (Australian) during the calendar year 1966, and, assuming good and positive results during that and each succeeding year, an equivalent sum during each of the years 1967, 1968 and 1969. The initial four year program provides for aerial geophysical surveys over all of the areas covered by AP's 1443, 1274, 1301, 1159, 1160 and 1295. Magnetometer surveys will be conducted over the entire areas, whereas scintillometer and electromagnetometer surveys will be conducted wherever applicable. Because of seasonal flying conditions, the size of the areas and the rates at which such survey results can be reliably interpreted; it will take a minimum of four years to complete a full-coverage aerial survey program. On the other hand, if the areas are not highly anomalous and if results are found to be extremely negative, it is possible that the entire flight program could be completed in less than four years. In addition to full coverage with aerial surveys, the initial four year program provides funds for sending land parties into the areas with portable geophysical equipment to determine the precise location of the aerial anomalies. Once the anomalies are specifically located, the ground coverage will consist of detailed geologic mapping and sampling, geochemical sampling, analysis and interpretation and such other studies as may be necessary to determine whether the particular anomaly is a logical drilling target. In the few accessible areas that now exist, the land parties will be transported to and from points of interest by motor vehicle. However, since large portions of the areas are inaccessible adequate and timely ground coverage can only be attained by helicopter and light aircraft support. The program budget includes funds for aerial support of ground parties. If the results attained during 1966 continue to justify aerial and ground coverage work at the rates now contemplated and if such work should develop a drilling target at any time during the initial four year period, the financial requirements could far exceed the present budget of $400,000 per annum. Once such target areas are located, there will be sufficient economic incentive to construct roads or airstrips to establish access for men and equipment to move into the areas and carry out the required drilling programs. If the drilling should develop ore reserves of economic dimensions, there will then bea need for additional capital to develop the mines, construct plants for processing the ores and erect living quarters for the personnel needed to staff the operations. The size of the areas in question is sufficient to warrant a four year aerial and ground geophysical program of the type outlined above. If areas are prematurely reduced in size before a complete target search is made the smaller areas may not statistically warrant a program of equal magnitude. If smaller scale programs are undertaken, the risk of failure is greater and the exploration cost per unit of ground covered could prove to be prohibitive. It is on the basis of the foregoing opinion, that Western is offering this program for consideration by the Administrator. It should be recognized however, that this program has been designed to afford maximum coverage to large inaccessible areas with limited geological information or prospecting experience to assist in present planning. Thus, as experience is gained and more information is developed, prudent exploration practices may dictate substantial revisions in the program now contemplated. If such changes are necessary, Western will advise the Department of Mines of the required changes and pursue the altered course of action with as much dedication as will be given to the program now outlined. Although Western is not requesting a commitment from the Administrator, Western is hopeful that future applications for renewals of APs 1159, 1160, 1274, 1295, 1301 and 1443 will be favorably considered upon Western's proving, to the satisfaction of the Administrator, that it is actively pursuing the exploration program outlined in this report as rapidly, efficiently, and constructively as feasible. Respectfully submitted, Western Nuclear (Australia) Pty Limited By A. Larson