Partial relinquishment report for EL 385 'Walker River', for the period ending 8 June 2007

Abstract

Exploration Licence (EL) 385 was applied for in 1972 by CRA Exploration Pty Limited (CRAE). Partial consent of the application area resulted in the granting of two separate licences (ELs 385 and 24304) in June 2004. The tenements are located approximately 180 km south-west of Nhulunbuy, and 80 km north of Numbulwar in south east Arnhem Land and consequently are processed under the Aboriginal Land Rights Act 1975 (ALRA). EL 385 was partially relinquished by 50% (19 blocks) at the end of the 2nd year term. A partial relinquishment of 7 blocks was lodged prior to the end of the 3rd year term. This partial relinquishment did not meet minimum relinquishment requirements and an application was made for partial exemption from the third year relinquishment requirement granted on 5 June 2007 The tenements are considered prospective for base metal mineralisation, similar to that at McArthur River (HYC) in the McArthur Basin. Subsidiary targets are diamonds and bauxite. The tenements contain McArthur Group equivalent sediments adjacent to the eastern margin of the Walker Trough. McArthur Group sediments are host to the McArthur River (HYC) lead-zinc deposit located approximately 300 km to the south. Exploration was directed at locating a stratabound base metal deposit by soil sampling, stream sampling and shallow auger drilling through sand cover. Testing for bauxite and diamonds was also conducted. Results of the soil, stream and auger drilling did not show any anomalous geochemistry for either zinc or bauxite mineralisation below the sand cover. The one diamond gravel sample was negative for indicators or diamond.