Annual report for the period 21-01-1988 to 20-01-1989.

Abstract

Exploration during 1988 included reconnaissance, track upgrading, geochemical soil sampling and computer processing of geophysical data. The geochemical soil sampling completed during the year identified a distinct Au anomaly coinciding approximately with the anticlinal axis. Values of up to 760 ppb in the composite samples indicate that possible economic grade mineralization exists in the bedrock. Future work to be carried out on this licence will include infill soil sampling to close the line spacing to below 100 metres, detailed structural and geological mapping, and percussion drilling on any targets defined by these methods. Expenditure on the licence area during the year was $47, 7650. Reconnaissance of the area - Location of internal lease boundaries, inspection of old workings in the area of the anticlinal axis, and prospecting outcrop areas. Road and Track Upgrading - An International Rough 530 front end loader was used to repair flood damage to tracks at the end of the wet season in 1988, and to clear vegetation from internal lease boundaries. Geophysics - computer enhancements - Data gathered in 1989 by aerial survey, including magnetic and radiometric data, was sent to Southern Geosciences in Perth. This company specializes in computer enhancements of data. With the aid of Northern Gold staff, their consultants produced eight enhancements, calculated to show the greatest possible information, and to aid in interpretation of regional geology and structure. Four of these enhancements were printed in cibachrome at a scale of 1:50,000. This data is not submitted in this report as information contained in the prints affects other areas held by Northern Gold. Geochemical Soil Sampling - The soil sampling program over the licence area was part of a broad-scale program conducted by Northern gold over the Howley Anticline during April and May 1988. 206 samples were taken over the area at 10 metre intervals along lines approximately 400 metres apart. Individual samples were split, one portion being retained at the Northern Gold premises in Adelaide River, and the other composited to give one sample for each 50 metres of traverse. Composited samples were analysed by bulk leach extractable gold (BLEG) method with a detection limit of 0.1 ppb Au. Assay results are included as appendix 1, and results from this work are plotted. The program identified numerous anomalous Au values, up to 760 ppb, in areas closely associated with the anticlinal axis. In several areas there were highly anomalous samples over a width of up to 200 metres. FUTURE WORK - The anomalies identified by the geochemical soil sampling conducted in 1988 are very significant in terms of local background levels (as determined by the regional geochemical sampling conducted by Northern Gold). As a result, it will be necessary to further define the anomalous areas by infill soil sampling to close the line spacing to below 100 metres and sample spacing to below 10 metres. Detailed structural and geological mapping will be required to interpret the anomalies, and any targets defined by these methods will be percussion drilled to test their extent and economic viability.