Second annual report for EL 23635 'McArthur' for the period 4 July 2004 to 3 July 2005

Abstract

Exploration Lease 23635 'McArthur' covers an area of 278 km2 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 Fault Zone. 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 Batten Fault zone. The fault zone remains a quality 'grassroots' exploration target that Anglo American Exploration (Australia) Pty Ltd intends to test as part of their larger Batten Fault Zone Project. During the first year of the lease work conducted was comprised of a review of all previous exploration in the Batten Fault Zone dating back over 40 years, reinterpretation of this data and selection of suitable target areas with the potential to host 'world-class' orebodies. This involved data gathering and review, geoscientific desktop studies, organising ground access and logistical preparation for the current field season. 2004 field activities were delayed until June due to an excessively long wet season; this fieldwork had originally been planned for April. Exploration activity during the second year of the lease was comprised of a TEM survey, which has not shown any bedrock conductor responses, which meet the exploration criteria.