Final report for year two of EL 22895 (Huandot West), 24th April 2002 to 23rd April 2004

Abstract

EL22895 is located 2.5 kilometres SSW from the now defunct Woodcutters lead-zinc-silver open pit. The northern boundary of EL22895 borders the mine perimeter fence. The Huandot pit, the result of a 20000 tonne bulk magnesite sample extracted in the mid to late nineties, lies 100 metres east of the eastern boundary. The Huandot resource currently stands at 5M tonnes and is expected to increase with further drilling. Magnestite is outcropping in the northern section of EL22895 and would require drilling to fully test the grade. The depth extent of the magnesite is believed to be at least 100 metres. Base metals may occur within EL22895. The proximity to Woodcutters, the presence of a NNE trending anticline and the favourable Whites Formation-Coomalie Dolomite boundary encourage base metal exploration. Gold deposits of the Sundance style may be concealed within the Coomalie Dolomite. EL22895 was explored in the 2002-03 season with ground magnetics, Sirotem electromagnetics and radiometics. A coincident magnetic and electromagnetic target has been identified at approximately 727750mE, 8561860mN (ADG84). The estimated depth to target is 70 metres. The proposed expenditure on EL22895 for the second year period, 25 April 2003 to 24 April 2004, was to be $11000 (inclusive of GST) and include the following activities: Further Sirotem III surveying in the northern region of EL22895 at 50 m x 50 m loop size to achieve greater resolution. Surveying with the EM-34 conductivity meter in the northern region of EL22895 to detect near surface conductors. Regional air photo interpretation. Gravity survey in the northern region of EL22895. Due to the restriction of access to the area by freehold owner no work was able to be carried out in the 2003/04 period. The mines department recommended legal proceedings to gain access to EL22895. In light of the small size of the area and limited potential it has been decided to relinquish the entire licence.