EL 7294 Borroloola, fourth Annual Report, for the period 30/10/2003 - 29/10/2004

Abstract

Exploration Licence 7294 'Borroloola' covers an area of 1110.54 km2 within the McArthur Basin near the Gulf of Carpentaria, NT, adjacent to the northern extension of the Emu Fault. Ashton Mining Ltd was granted the lease on 30th October 2000 for a period of six years. Previous drilling by Rio Tinto Exploration (RTE) confirmed that a small sub-basin adjacent to the Emu Fault contained Middle Proterozoic carbonaceous pyritic siltstones prospective for stratabound sedimentary-hosted Zn-Pb mineralisation. A review in 2002 by RTE of its base metal projects in the McArthur Basin resulted in the decision to divest EL 7294. The divestment of EL 7294 was progressed during the reporting period with Anglo American Exploration (Australia) Pty Ltd agreeing to a joint venture on the tenement in late September. The Batten Trough Farm In and Joint Venture Agreement was entered into between Rio Tinto Exploration Pty Ltd (North Mining Limited and other Rio Tinto companies) and Anglo American Exploration (Australia) Pty Ltd in 2003. This Agreement was signed on 29 September 2003 and it has been lodged with the Department for registration. Under this Agreement, Anglo American Exploration (Australia) Pty Ltd is carrying out work on the licenses covered by the agreement. They now form part of a regional exploration project that Anglo American Exploration (Australia) Pty Ltd is undertaking in Joint Venture with Rio Tinto Exploration Pty Ltd (North Mining Limited) within the McArthur Basin. The other leases within the Project include EL10103, EL10316, EL10317, EL10329 and EL23676. There was little opportunity to undertake field work in 2003 due to the Joint Venture agreement with the Rio Tinto group being finalised late in the field season. 2004 field activities planned for the Batten Project area were delayed until June due to an excessively long wet season; this field work had originally been planned for April. Field exploration activities during 2004 were concentrated on other leases of the Project. Minor broad-scale reconnaissance field work was conducted on EL7294 during the 2004 field season. Since the Joint Venture agreement was finalised last year most activity has been associated with data gathering and review, geoscientific desktop studies, organising ground access, and minor reconnaissance work and logistical preparation for the next field season. The exploration target is sediment hosted massive sulphide Zn-Pb deposits of the HYC type. Rio Tinto Exploration's previous exploration results in the area had 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.