Annual report 21 January 1988 to 20 January 1989

Abstract

EL 4847 is situated approximately 40 kilometres southeast of Adelaide River. The licence area covers part of the Rowley anticline to the north of Cosmo Rowley mine. Within the area of the licence are four Mineral Claims held by Northern Gold (MCN1O12 - MCN1O1S) and several mining leases held by others. Exploration during 1988 included two reverse circulation drill holes, geological mapping, 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 with values of up to 120 ppb in the composite samples, coinciding approximately with the anticlinal axis. Drilling results indicate widespread anomalous gold values in the sediments of the Mount Bonnie Formation with intersections averaging 0.5 g/t or better over several metres. To assess the importance of this target, further work will consist of detailed structural and geological mapping, and percussion drilling on any further targets defined by these methods. Expenditure on the licence area during the year was $50,715. During the 1988 anniversary year, work completed on EL 4847 consisted of - Mapping and Reconnaissance of the area. Internal lease boundaries were located, old workings and outcrop were inspected on the western side of the Howley Ridge. Road and Track Upgrading Drill site Preparation - An International Hough 530 front end loader was used to repair flood damage to tracks at the end of the wet season in 1988, to clear vegetation from internal lease boundaries, and to construct drill pads in the flatter areas. A D8 bulldozer was hired from Boomerang Transport to provide access and drillhole pads in the steeper regions. 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, May and August 1988. 156 samples were taken at 25 metre spacings over the central and southern part of the licence and composited to 50 metres. 210 samples were taken over the northern part of the licence 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 (ELEG) 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 120 ppb. Drilling - Drilling was conducted in March and April 1988 along a traverse at right angles to the Howley Ridge. The line was located adjacent to old costeans which showed anomalous gold values of up to 0.5g/t over several meters. Quartz veining is common in the costean and the drilling was designed to test this mineralization at depth. The drilling was contracted to Civil Resources Ltd., a Western Australian based company specializing in reverse circulation techniques. The rig used was an Ingersoll Rand T4 mounted on a tandem drive crane carrier truck. All drill holes were sampled in one metre intervals. Dry samples were riffle split with a cascade riffle splitter, and wet samples were rotary split. A 1-2 kilogram split was sent to Analabs in Darwin for fire assays and the remainder (usually 10-20 kg) was retained on site. A small plastic vial of chips was also taken from each metre and is stored at the Northern Gold Adelaide River site. Results from the drilling indicate widespread anomalous gold values in the sediments of the Mount Bonnie Formation with intersections averaging 0.5 g/t or better over several metres.