Partial relinquishment report for EL 25089 for the period ending 5 October 2009

Abstract

This report details exploration undertaken over the area of the 3rd year compulsory 50% relinquishment for EL 25089, for the period from 7th September 2006 and 7th September 2009. The tenement was originally granted to Mincor Resources NL then transferred to Mincor Zinc Pty Ltd, which is now the sole title holder. Work in the tenement area EL 25089 was retarded for the first year by the delay in negotiation of an access agreement with the Central Land Council. The work and expenditure program for EL 25089 during the first year consisted of a geological and geophysical review of existing data and information towards determining the location of zinc - lead mineralization in the southern Georgina Basin. Exploration carried out subsequently comprised a detailed gravity survey (2 km point spacing), 3 dimensional modeling of the regional geology based upon interpretation of these data coupled with stratigraphic boundaries extrapolated from historic seismic traverses and associated drill hole logs, as well as collection and geochemical analysis of stream sediment and soil samples. A limited number (21) of stream sediment samples were collected in the area relinquished. These were taken from the stream bed at localities immediately upstream of primary confluences. The samples were dry sieved to a fraction less than 0.2 mm in grain size. This sample was then subjected to 4 acid dissolution followed by ICPMS analysis to determine the ultra trace element concentrations of selected metals. No significant anomalies were determined in the area relinquished. Detailed gravity studies were undertaken of the entire combined tenement holding of Mincor Zinc in the Georgina Basin, in excess of 9000 km2 in extent. These data allowed the interpretation of likely fault lines in the area that will be the subject of detailed studies in the future. Three traverses of soil samples at 50 m intervals were collected in the area relinquished. These were located as possible indicators of seepage from mineralization at depth beneath interpreted fault lines. Samples were collected from a depth of 20 to 30 cm and the material sieved to a fraction less than 1 mm in grain size. The samples were submitted to ALS Chemex laboratories for Ionic Leach processing prior to analysis by ICPMS for selected metals. No significant anomalies were identified in these traverses.