First annual report on Daly River Road Iron Ore Prospect

Abstract

The Daly River Road Iron Ore Project consists of one granted Exploration Licence (EL 24391) covering 20.04 square kilometres approximately 200 km south of Darwin in the Northern Territory. The tenement area is situated approximately 55 km north-northwest of the township of Katherine and is accessed via the Stuart Highway then along the unsealed Spring Hill Road. This report describes the results of literature research and field reconnaissance carried out during the first year of the Licence. Distribution of the iron ore is patchy in its nature. Areas shaded as ironstone do not signify continuous exposures but include numerous scattered outcrops, much rubble and deposits of red lateritic soil. The thickest and best exposures of ironstone are the central part of the current tenure area; to the north and south, the ore thins out with the overall grade. Outcrops in the central and north-eastern areas commonly show enrichment in hematite at the surface. Based on historical exploration, an estimation of 15 to 20 million tons with iron content greater than 40% may occur in the current tenure area. In June 2005, Kastellco Geological Consultancy was commissioned to carry out one day field reconnaissance over the Daly River Road Iron Ore project area and to recommend a detail exploration programme for the following year. Three rock chips samples were taken from various locations with iron results averaging 50%. During the month of January 2007, a review of re-processed and re-interpretation of magnetic and radiometric data from the Northern Territory Geological Survey Database was undertaken. This was conducted for the purpose of identifying exploration targets for iron ore and uranium. Numerous exploration magnetic and radiometric targets were outlined. Several first order and second order high priority radiometric targets were identified which warrant extensive work.