Partial relinquishment report for EL 23639 Kiana Project

Abstract

EL 23639 (Kiana Project), which originally covered an area of about 529km2 (161 blocks) on the Wallhallow 1:250,000 sheet in the southern section of the McArthur Basin, is regarded as being prospective for base metal and diamond mineralization. Four copper occurrences in Palaeoproterozoic rocks adjacent to major faults structures in the western section of EL 23639 indicate potential for replacement-style base-metal mineralization. Diamond indicator minerals (chromite and micro-diamonds) are reported from drainages in Palaeoproterozoic folded and lightly metamorphosed rocks in the west of the tenement and less deformed Cambrian rocks overlying a Palaeoproterozoic basement in the east. A review of the regional geomorphogical and geophysical data-sets that cover the tenement, including digital terrain, magnetics, radiometrics, gravity, ASTER and LANDSAT, each show that the tenement is transected by major NNE to NE and NW trending structures that could act as conduits to mineralizing solutions. These features delineate different geological terrains within the project area and allow field programmes to identify favorable zones with the potential to host mineralization. A review and compilation of the open report data from the NTGS into MAPINFO GIS was undertaken during the 2005-2006 year. The detailed prospect mapping, geochemistry and geophysical data for the lease revealed several potential copper or zinc targets, particularly in the Wollorgorang Formation and Settlement Creek Volcanics. These targets were investigated during the 2006-2007 year in a reconnaissance, exploration and sampling trip conducted in conjunction with Hardrock Integrated Mining Solutions. On 26 February 2008 an application to relinquish 50% of the licence area was made. The area of the licence relinquished predominantly covered the eastern half (80 blocks) of the EL. The area retained was deemed to be more prospective for base or precious metals with a secondary consideration being there diamond potential with the relinquished eastern area being largely covered by substantial thickness of younger and low base metal prospective rocks. An overview of the works undertaken on the portion of the EL relinquished is included within this report. Four rock chip and stream sediment samples were taken for base metal exploration and two samples were taken for diamond exploration from the relinquished area.