Annual/Final Report Exploration Licence 23106 13th February 203 to 30th January 2004 Hermit HIll Project

Abstract

Hermit Hill is located 150km south-southwest of Darwin in the Daly River area of the Northern Territory. The project area is underlain by the relatively under-explored rocks of the Litchfield Complex that has been correlated with portions of the Halls Creek Mobile Zone to the southwest in Western Australia. Several studies have proposed that the igneous and metamorphic rocks in the two areas are linked via large lateral displacements along the Halls Creek and Giant's Reef Fault Zones and it is upon this correlation that the conceptual Hermit Hill Project is based. Mafic and ultramafic rocks at Hermit Hill are interpreted to be equivalent to the recrystallised gabbros, norites and pyroxenites at Bow River and Corkwood and hence are regarded as having significant potential for massive sulphide Ni-Cu-Co- PGM deposits. The probable correlation between the Daly River area of the Northern Territory and the Halls Creek-Kununurra region of WA also suggests there is potential at Hermit Hill for rare earth element and possibly niobium-tantalum deposits associated with felsic rocks similar to those at the Brockman rare metal deposit in the east Kimberley. Southdale Holdings Pty Ltd (Southdale) undertook a reconnaissance geological and geochemical program in order to validate the prospectivity of the Hermit Hill tenement once the licence was approved. Twenty seven surface samples were collected and analysed. No anomalous results were found so the tenement was surrendered.