Commercial in Confidence for Mr. David Simmons M.P, 6th April, 1988. Economic Potential of the South Alligator Conservation Zone

Abstract

The report is the text of a presentation made to David Simmons MP, in April, 1988, intended to convey the importance of permitting development of the mineral resources in the South Alligator Conservation Zone, including Coronation Hill. The report briefly presents the results of a major compilation and review of mining and exploration data from 45 localities in the South Alligator Valley in terms of prospectivity for gold. Excluding Coronation Hill and Sleisbeck, the review identified 5 localities with very high prospectivity for gold, 14 with high prospectivity, 12 medium, and 14 low. Limited sampling suggested that some Pt and Pd could be expected in association with gold. The Coronation Hill deposit is 80-100m wide, at least 250m long, and is still continuing at 500m depth. The mineralisation extends beyond the existing tenements, and its full extent is not yet defined. The in- situ resource (in all categories) was presently 650,000ozs gold, 40,000ozs Pt, and 100,000ozs Pd. Justification is offered for not fully drilling out the deposit prior to development. A detailed re-evaluation of old mining data from El Sherana and El Sherana West indicate the existence of substantial high grade gold mineralisation at least 300m in length, 30m in width, and 100m in depth. This is more extensive that the previously mined uranium mineralisation. More drilling is required to evaluate the prospect. For the purposes of a predicted development scenario, it is assumed that at least one other similar deposit is found within the South Alligator Valley. On that basis a scenario is outlined which reaches a peak production of 200,000ozs Au, 7,000ozs Pt, and 30,000ozs Pd. The benefits of such a development are outlined.