Annual report for EL 7150 'Talbot South', for the year to 5 November 1999

Abstract

This report details exploration activity on the lease area including LAG and soil sampling, vacuum, RAB, RC and diamond drilling. A ground magnetic survey was also carried out. At Freefall Prospect soil sampling did not support indicated previously gold anomalism. Water bore intersected a single anomalous Au assay of 92ppb. The results from soil sampling in Skysurf area were not considered significant. Vacuum drilling results indicated Au and As anomalism confirmed by RAB drilling (peak value of 140ppb Au). Lag sampling in Basejump recorded week gold anomalism and RAB drilling resulted in the best assays 44ppb Au and 50-280ppm As. Intensive RC and diamond drilling undertaken within Ground Rush Prospect was aiming to define size, shape and average grade of the deposit. This work included LAG sampling, vacuum drilling and regolith RAB drilling, follow up with RC and diamond drilling. The best intersections from diamond drilling were 39.5m @ 12.36 g/t Au (77m-116.5 downhole depth), 7m @ 57.67 g/t Au (103m-110m downhole depth). Significant mineralisation has been identified along strike of 1200m. The mineralised lode shows width of 10-30m with grades averaging 3-10 g/t Au. The mineralisation has been tested down to depth 100-150 vertical meters and is associated with quartz veins, chlorite alteration and sulphides.