Joint surrender report for the period 28th March 2001 to 23rd July 2003

Abstract

The Rand Project is a joint venture between Gutnick Resources N.L. (manager) and Johnson's Well Mining N.L. The Rand Project is based on a new genetic interpretation for the Witwatersrand mineralisation in South Africa. These new hydrothermal models suggest that similar and related styles of mineralisation may be present in other sedimentary basins with similar structural and stratigraphic styles to the Witwatersrand. Following a literature and field based review of potential target basins around the world, the Amadeus and Ngalia Basins were selected for exploration as part of the Rand Project. A literature search of government open file data was completed to review past exploration techniques and methodology. Previous exploration for gold is limited. Current exploration involved the application and assessment of regolith, structural geology, geochemistry and geophysics. An orientation program was designed to determine the best method for geochemical sampling, by comparing areas of known mineralisation to areas with none. A regional stream sediment and rock chip sampling program was then completed over areas of outcrop at the Mt Doreen and Illogwa Creek target areas in the Amadeus Basin. Fourteen base of slope samples were taken during the stream sediment program and were analysed for the same elements as the stream sediments using the same analytical techniques. All exploration was non-invasive with negligible environmental impact. A total of 510 stream sediment samples were taken in the active channels of dry creek beds to a density of 1 sample per 5 square kilometers. Each sample site represented a 3 kilogram sample that was sieved to - 4 mm and analysed using low level detection BLEG for gold and sieved to -2mm +40 mesh and analysed using ICP-OES or ICP-MS for the multi element analysis. Several discrete areas return elevated gold levels with 21 stream sediment samples containing in excess of 1 ppb gold with a maximum value of 6.15 ppb. One area also returned elevated silver results with 12 stream sediment samples containing 0.10 ppm silver or better with a maximum of 0.25 ppm. Elevated levels of base metals and other elements were also returned in a number of areas. Reconnaissance rock chip sampling conducted during the stream sediment program returned several amomalous gold and silver values with maxima of 25 ppb and 5 ppm respectively. Maximum values for other metals include 350 ppm arsenic, 1000 ppm copper, 32 ppm bismuth and 16.5 ppm antimony. Field observations in several of these areas confirm the presence of quartz veining, deformation and mica alteration in the sedimentary rocks and the metal anomalies may reflect these alteration systems. Rock chips were analysed using the Atomic Absorption method. Fourteen base of slope samples were taken during the stream sediment program and were analysed for the same elements as the stream sediments using the same analytical techniques. All exploration was non-invasive with negligible environmental impact.