Partial relinquishment report for EL 26028 McArthur Basin Project, 3 December 2007 to 2 December 2009

Abstract

Castile Resources' McArthur Basin Project is located within the highly prospective Batten Fault Zone of the McArthur Basin, in the north-eastern part of the Northern Territory. The main exploration target is lead-zinc deposits in the carbonates of the McArthur Group, with copper (+/- gold) mineralisation being a second target mineralisation type. Significant phosphate deposits have been located in the Georgina Basin, and this is an additional lower priority target in the southern part of Westgold's tenements to the south. Westgold Resources Limited, through its wholly-owned subsidiary Castile Resources Pty Ltd (Castile), holds title to EL26028 within the McArthur Basin Project. EL 26028 ended its second year of tenure on 2 December 2009, and was due for 50% relinquishment on that date. Application was made to NT Department of Resources for the relinquishment of only 6 of the 33 blocks. The tenement now consists of 27 graticular blocks. Following the discovery of the giant McArthur River lead-zinc deposit in the 1950's, geological investigations have been carried out by the BMR and NGTS at the regional level, and several regional airborne geophysical surveys have been completed on behalf of government agencies. The EL 26028 area has also been covered by several previous tenements, and considerable surficial exploration has been completed in the region. However, very little work appears to have been completed over the relinquished portions of the tenement. Since the grant of the initial tenements, the economic parameters for base metals, and indeed all mining projects have worsened dramatically, and the work completed in the past year has been limited to data compilation and assessment, and a re-assessment of target priorities by Castile. An airborne survey for digital and geo-referenced aerial photography was also flown by Westgold. This survey will enable more accurately locate previous exploration activities and results, and assist in the planning of future mapping, sampling and drilling. A more detailed assessment of the airborne electromagnetic systems applied to exploration will be carried out to understand their effectiveness for various mineralisation geometries possible for the region. Further analysis of the existing stream sediment results from the tenement will be undertaken, followed by ground mapping for unit verification and rock-chip sampling of prospective horizons.