Annual report for EL 23566, EL 23792 and EL 25007 Plenty River Project, for period 20 December 2008 to 19 December 2009

Abstract

Exploration completed during the reporting period (20 December 2008 to 19 December 2009) at the Plenty River Project (EL 23566, EL 23792 & EL 25007) involved airborne and ground geophysics and diamond drilling. AusQuest successfully applied for funding under the Northern Territory Governments Geophysics and Drilling Collaboration Grant Scheme in April 2009 for drilling of a coincident gravity/magnetic target within EL23792 (Caroline Prospect). Exploration comprised testing of a potential IOCG target at the Caroline prospect and potential nickel sulphides within interpreted layered mafics at the White Gums prospect. Airborne VTEM surveys covered portions of each tenement with a total of 620 line km at a line spacing of 1000 m within EL 23792 and 250 m line spacing within EL 23566. Cover sediments of the Eromanga Basin that overlie the majority of EL 23792 were found to be strongly conductive and as a result, the VTEM data could not be used to interpret the basement sequence in this area. Within EL 23566 the VTEM survey identified several anomalies. Ground follow-up was undertaken in the White Gums Prospect using a moving-loop ground EM system (MLTEM). A total of 29.8 km (25 lines) was completed over five VTEM anomalies locating two targets of interest which were named Foxes and Monkey Gnomes. Modelling of the MLTEM data outlined 2 targets for drilling. Drilling was completed in November 2009 and included three holes at the Caroline Prospect (1470 m) and four holes at the White Gums Prospect (1876 m) for a total of 3346 metres. Down-hole EM surveys were completed in six of the seven holes drilled. Results indicate that the magnetic/gravity anomaly at Caroline reflects a gently dipping synclinal structure with a mafic (gabbro) unit in the core of the syncline. The sequence was composed predominantly of laminated pyrrhotitic/graphitic shales and mudstone which were the cause of the magnetic anomaly, with interlayered felsic volcanics. The mafic unit in the core of the syncline had a density contrast of ~0.25 gm/cm3 higher than the surrounding sediments making it the probable cause of the gravity response. Drilling at the White Gums prospect intersected thick horizons of strongly foliated pyrrhotitic white-mica chlorite schist. The schists are interpreted to be the same sequence as intersected at the Caroline Prospect with a low grade metamorphic overprint. Sulphide mineralisation was evident as blebs and disseminated stringer micro-veinlets. The micro-veinlets occur in zones that are semi-coincident with down-hole EM responses, indicating that the pyrrhotite mineralisation is the source of the surface EM anomalies. At both prospects slightly elevated base metals were encountered with the higher values reported within narrow veins containing sulphides.