Antrim Project Surrender Report for EL's 22749, 22750 and 22751

Abstract

Tenements EL 22749, 22750 and 22751 were granted on April 16 2002, as part of AusQuest Limited's Antrim Project in the Northern Territory. The broader Antrim Project Area was considered prospective for Noril'sk-style Ni-Cu-PGE sulphide deposits and for diamonds. Work completed includes a review of historic Open File data and exploration for diamonds. The latter programme comprised identification of 11 magnetic anomalies of interest within the Antrim Plateau Basalt. Under a joint venture agreement with BHP Billiton (BHPB) composite heavy mineral samples were collected over all 11 of these features and follow-up ground magnetic and gravity surveys were conducted over 5 anomalies and ground magnetics only over an additional 1 anomaly. Probe results for spinel and ilmenite grains failed to indicate any kimberlitic affinities. In the absence of encouraging heavy mineral sampling indicators, the results from magnetic and gravity modeling were considered by BHPB to be of insufficient interest to warrant drill testing in their own right. Subsequent drilling of 4 anomalies in 2003 by Rio Tinto Exploration under a joint venture agreement, intersected vesicular basalts, and possible mafic plugs. No kimberlitic lithologies or geochemistry was encountered. The ground was not considered a core component of AusQuest's Ni-Cu-PGE Project and this fact, coupled with the lack of positive diamond exploration results, resulted in the tenements being reduced by relinquishment on 2 occasions and finally surrendered.