First annual report EL 5065 Adelaide River area Northern Territory.

Abstract

This report describes the exploration work which has been carried out on Exploration Licence 5065 in the first year of tenure.

Exploration Licence 5065 which covers an area of some 142 square kilometres is situated just south of the township of Adelaide River and nestles in between the Adelaide River to the west and the new Stuart Highway to the east. The Old Stuart Highway runs about north-south through the area and is now designated a 'scenic route'. No gold mineralisation has ever been recorded from the area before Exploration Licence 5065 was granted. The exploration philosophy which was carefully formulated for the area involved certain structural features which are considered favourable for the presence of gold. Basic proven exploration techniques, developed by Geonorth are used exclusively. Though Inexpensive, these techniques have been responsible for finding gold mineralisation, in the area - the Possum gold prospect.

This gold mineralisation is a completely new find as there is no record of any previous testing at all. The structure containing the new mineralisation is an anticline with coarse greywacke bands crossing it. Similar situations exist within the Exploration Licence and these are presently being tested for gold mineralisation. Previously undiscovered significant gold mineralisation has been delineated on the Exploration Licence.

Such is the geological setting of the mineralisation, it could be expected to contain a large economic gold resource.

Exploration in the initial stages consisted of collection of samples from potentially gold bearing areas and assaying these for gold and arsenic. The samples, for the most part were collected on foot, as most of the sample sites are situated in areas not suitable for access by four wheel drive vehicles. Aerial photographs were used to choose sample sites and to provide a 'map' to reach the sites. Altogether, sixty one samples were taken and assayed, with gold assays ranging from below detection limit (0.01 grams/tonne) to 2.34 grams/tonne. Arsenic values varied from below detection limit (either 2 or 100 ppm) to 810 parts per million.

Plane table mapping using EDM techniques was employed to map the lithology and structure of the area containing the gold mineralisation. This is presently being used to interpret the structure so that further testing can be planned efficiently.

At the same time work is continuing on other likely structures within the Exploration Licence area. This work is slow and exacting and is not really suited to the conditions which prevail at this time of the year.