Casey Project EL 24646 Second Annual Technical Report for the period 16 December 2006 to 15 December 2007

Abstract

This report summarises the work completed on Exploration Licence 24646 for the period 16th December 2006 to 15th, December 2007. During this period, a significant amount of work was completed, including: Ground magnetic surveys (69.6 line km) at Pipeline and Arthur Popes; Fixed loop ground EM survey (10 line) at Pipeline; Dipole-dipole IP surveys (6 lines) at Pipeline and Arthur Popes; Diamond drilling (3 holes for 590 m) at Pipeline; Prospect mapping and sampling at Pipeline and Arthur Popes; and Regional mapping and sampling. This work has provided a better understanding of the copper mineralisation at Pipeline, though many questions are yet to be resolved. All of the drillcore samples are yet to be returned, but the copper mineralisation is now interpreted to be somehow related to the unconformity between the Loves Creek Member and the Areyonga Formation. Mineralisation may have formed at the unconformity because it is a major redox boundary with the mineralising fluids being exotic to the area. If so, this mineralisation is highly prospective (eg, Kupferscheifer, African Copper Belt analogies). Alternatively, the mineralisation may be a local feature and of no economic importance. The work during the second year also discovered that carbonatite veins are associated with copper mineralisation at Arthur Popes. These veins have not been reported previously. The carbonatite veins were discovered to be widespread and associated with elevated REE and Y. Some spectacular copper grades were returned, but the mineralisation thus far is small and discontinuous. Further mapping is required to completely delineate the extent of the veins and find a place where the copper mineralisation is more significant. Regional work looking for exposed mafic-ultramafic Ni-Cu-PGE sulphide mineralisation was disappointing, with only one significant Cu anomaly returned. Although the work has uncovered more ultramafic rocks beneath silcrete caps, these returned poor base metal results. Further work for this style of mineralisation will need to focus on covered magmatic bodies. Further work is required to determine whether the Cu mineralisation at Pipeline and Cu-REE-Y mineralisation associated with the carbonatite veins have regional significance. Further work on magmatic Ni-Cu-PGE mineralisation may flow from the regional gravity survey to be completed in the next year.