Drilling collaborations report for EL 23792 Plenty River Project

Abstract

The Plenty River Project is a greenfields exploration project located in central south-eastern Northern Territory and is targeting base metal mineralisation below the Cretaceous (Eromanga) sediments. Previous exploration work has been limited to loam sampling and near surface drilling for kimberlite pipes undertaken under a Joint Venture between AusQuest and Rio Tinto Exploration Ltd from 2005 - 2006. Recently AusQuest acquired further detailed geophysical data (gravity) that suggested a coincident gravity /magnetic target below the Cretaceous sediments may have potential for IOCG style mineralisation. The exploration model for the Plenty River Project was based on comparisons with the Prominent Hill style deposit located in South Australia which is characterised by a low tenor gravity response and a semi-coincident magnetic anomaly reflecting the presence of significant quantities of hematite mineralisation (alteration). The target at Caroline which occurs below a cover sequence in the order of 200m thick, displayed similar geophysical characteristics. AusQuest applied for funding under the Northern Territory Government Drilling Collaborations Programme in April 2009 and received approval in July 2009. The drilling programme at the Caroline prospect commenced in September 2009 and was completed in October 2009. A total of three pre-collared diamond holes and 1407.18m of drilling (including 456.8m of mud rotary pre collars and 953.38 NQ diamond core) were completed. One hole was abandoned in the cover sequence due to difficult drilling conditions. Drilling intersected a thick sequence of sulphidic (pyrrhotite) laminated sediments with interbedded felsic volcanics, dacitic tuffs and flows and interlayered mafic sills. Physical property measurements on core confirmed the magnetic anomaly is caused by the pyrrhotite mineralisation and the gravity response is due to a thick section of gabbro/dolerite in the core of a synclinal structure. Weakly elevated base metal values were encountered within the sedimentary package but no ore grade intersections were reported. Further exploration work within the general region is planned for 2010.