EL 26534 Helen Springs Project Annual report for the period ending 1 August 2009

Abstract

Tenement number EL 26534 was granted on 1 August 2008, and is held in the name of Sinosteel Australia Limited, who is also the operator of the tenement. It covers 284 blocks for 926.0 sq kms and forms the Helen Springs project. There are no existing or historical mines or mineral prospects within the tenement, and there has been little to no previous exploration work due to the Cainozoic cover in most of the tenement area. The tenement was pegged to explore for manganese and copper mineralisation hosted in the Paleoproterozoic rocks that sit under the Cainozoic cover, and for possible paleochannel uranium deposits. The Paleoproterozoic rocks in the SW part of the tenement likely correlate to the Tomkinson Creek, Namerinni and Renner groups. Most of the Namerinni Group rocks are absent in the tenement, as the Renner Group sits unconformably over the Tomkinson Group due to an erosional unconformity or low angle faulting prior to folding. The Tomkinson Group is the same interval that hosts the most significant manganese and copper mineralisation within the district, the Bootu Creek manganese deposits being mined along the southern nose of the Bootu Syncline. A review of the geology and geophysical data indicated that the Bootu syncline continues into the tenement and that the Bootu Formation hosting the Bootu Creek Mn mineralisation may form part of an anticline and syncline under cover in the south-eastern part of the tenement and in a narrow strip along the central western side of the tenement. Manganese mineralisation likely formed from low temperature hydrothermal fluids associated with silicification of dolomite deposits, and potential copper mineralisation may be related to mineralising fluids associated with intrusive sources from the Cambrian Helen Springs volcanics. A RepTEM high-resolution helicopter, time domain electromagnetic survey was flown in January 2009 over the SW part of the tenement, covering an area of 283 sq kms. Survey line spacing was 100 m E/W, tie line spacing was 1,000 m N-S, and mean terrain clearance was 35 m. Total line kms flown was 3,041.5. Data were corrected by the contractor, GPX Surveys, and were also processed for CDIs and conductivity using EMAX software. The data were then processed by geophysical contractor Resource Potentials Pty Ltd, and this included CDI processing using EM Flow software. Preliminary processing of the RepTEM data was carried out, along with other open file geophysical data and GIS information. A number of geophysical and geological GIS compilation plans were generated at 1:100,000 and 1:50,000 scales to target conductive and magnetic bedrock features. The Cainozoic cover is interpreted to be rather thin throughout most of the survey area, except for a few small paleochannels running in a NE/SW direction. Cambrian sedimentary deposits likely cover most of the older rock units along the NE margin of the survey. Some highly conductive and magnetic bedrock features have been identified as potential mineralisation targets. Detailed RepTEM data processing, geological bedrock and structural interpretation, target generation and prioritisation, and target modelling is ongoing so that drilling targets can be identified and then drill tested in the following reporting year. RepTEM helicopter magnetic and electromagnetic data in located digital format, report files in PDF format and map plot files in PDF format accompany this report.