First partial surrender report for EL 24887 for the period ending 7 August 2009

Abstract

This report describes exploration completed on the surrendered blocks of EL 24887 for the period ending 7 August 2009. EL24887, located approximately 80km southeast of the town of Tennant Creek, was granted to Castile Resources Pty Ltd (Castile) on 8 August 2006. The area is considered prospective for copper, gold and base metals mineralisation associated with Iron Oxide Copper Gold (IOCG) mineralising systems within the Proterozoic Warramunga Formation. Phosphate deposits in the marginal zones of the Cambrian Georgina Basin are regarded as being a secondary exploration target for the region. EL 26887 ended its second year of tenure on 7 August 2008, and became due for the statutory 50% surrender. The department granted exemption from the surrender requirements for that period. EL 24887 ended its third year of tenure on 7 August 2009. Approval was granted by the Department for the surrender of only 62 sub-blocks, and 131sub-blocks were retained for exploration. Exploration activities completed during the first three year period included data compilation, target magnetic modelling and reporting. Previous exploration work located one major discrete magnetic anomaly within western part of the tenement, which was determined to be caused by magnetic BIF in outcrop. Twelve additional aeromagnetic anomalies were located on the tenement, some of which were tested with soil sampling and RAB drilling with negative results. The western part of the tenement was determined to have been sufficiently tested and to be largely underlain by granitic rocks, and was surrendered.