EL 23635 'McArthur' First Annual Report for the period 4/07/2003 - 3/07/2004

Abstract

Exploration Lease 23635 'McArthur' covers an area of 278km2 and is located within the McArthur Basin near the Gulf of Carpentaria, Northern Territory, approximately 30 km southwest of Borroloola, on the Bauhinia Downs 1:250,000 map sheet. Anglo American Exploration (Australia) Pty Ltd was granted the lease on 4th July 2003 for a period of six years. The lease now forms part of a regional exploration project that Anglo American Exploration (Australia) Pty Ltd is undertaking within the Batten Trough. The exploration target is sediment hosted massive sulphide Zn-Pb deposits. Results of previous exploration by Rio Tinto Exploration in the area have confirmed the favourable geological setting and Zn-Pb prospectivity of the subbasin. The sub-basin remains a quality 'grassroots' exploration target that Anglo American Exploration (Australia) Pty Ltd intends to test as part of their larger Batten Trough Project. During the first year of the lease work conducted has comprised of a review of all previous exploration in the Batten Trough dating back over 40 years, reinterpretation of this data and selection of suitable target areas with the potential to host 'world-class' orebodies. This has involved data gathering and review, geoscientific desktop studies, organising ground access and logistical preparation for the current field season. 2004 field activities have been delayed until June due to an excessively long wet season; this fieldwork had originally been planned for April. Permission was received in March 2004 from the Director of Mines, Northern Territory Government, for drilling evaluation of the Project to commence.