Annual exploration report EL 23516, for the period ending 3 April 2007

Abstract

EL 23516 is situated approximately 150km SE of Darwin, and 40km ENE of Adelaide River. It was granted on 4 April 2003 and will expire on 3 April 2009, comprising 34 blocks that cover approximately 113.7 sq. km. EL 23516 is located within the Pine Creek Orogen and covers mostly Palaeoproterozoic Burrell Creek Formation part of the Finniss River Group and underlain by rocks of the South Alligator Groups towards south. EL 23516 almost surrounds the Goodall and several other gold prospects/deposits. During 1988 - 1993 Goodall mine produced 7.1 tonnes of gold by treating 4.095 Mt tonnes of ore with a head grade of 1.99 g/t. The area has been known for gold mineralisation and still potential exits in discovering new gold deposits. A technical review of the project shows that presence of magnetic ridges within EL 23516 signifies the gold potential of the area. Already several gold prospects/deposits are apparently associated with these magnetic ridges (e.g Goodall gold deposit), which could provide lead in developing exploration strategies in the area. During the reporting period, exploration activities included technical review, reconnaissance field visit, data entry and report writing. In the next year, a program of soil sampling with possible RAB/RC drilling will be undertaken.