Annual report for EL 24279, 7 February 2006 to 6 February 2007, Oldyard Project

Abstract

The Oldyard project (EL24279) is located 125km south west of Katherine along the Victoria Highway, and centred about 12km south of Willeroo, straddling the Victoria and Buntine Highways. The area is considered to be prospective primarily for deposits of copper/ nickel, with secondary potential for diamond deposits, though other target concepts are also of interest. The geology is dominated by Lower Cambrian Antrim Plateau (Basaltic) Volcanics. During the initial phase of the EL24279, work consisted of: - Literature research of previous exploration, geological survey and geophysical survey over the EL and surrounding district. - Data compilation. - Acquisition and interpretation of departmental geological and airborne geophysical data sets. - Research on the geology and exploration signatures encountered in the district, including discussion with former Ashton Mining personnel. - Planning for a field reconnaissance sampling program. The review of previous work revealed that the sampling density for diamonds in the area was lower was most likely adequate to reveal any kimberlite occurrences, though there had been some encouragement from anomalous chromites that could not be repeated upon follow up. Work during September and October 2006 of the 2006-2007 field season included: - Field geological reconnaissance. - Reconnaissance -200micron (-80#) stream sediment sampling and geochemical analysis. - Reconnaissance -1.2mm heavy mineral sampling, processing and mineralogical analysis for diamonds. - Rock chip float and outcrop sampling and geochemical analysis - Liaison with personnel and management of Willeroo Station - Database Compilation - Reporting on results for 2006-2007 During the next phase of exploration of EL24279, the following work will be completed: - Follow up - Reconnaissance heavy mineral sampling, particularly for diamonds. - Interpretation of results. - Detailed magnetic, radiometric and EM surveys of the target area will be considered if this further reconnaissance suggests this is warranted. - Reporting, planning and budgeting. In addition, liaison with other stakeholders in the area will continue.