Second annual report on East Arltunga Project

Abstract

The East Arltunga project is located approximately 120 kilometres north-east of Alice Springs in the Arunta region in the Northern Territory. The project comprises one granted Exploration Licence (EL25906) which covers a total area of 101.4 km2 situated in the Northern Territory. This report describes the results of literature research and target generation based on re-interpretation of magnetic/radiometric data carried out during the first year of the Licence. During 1986, Cesium International Pty Ltd conducted gold exploration activities by helicopter and ground traverse in which 24 rock chip samples were taken. Reconnaissance rock chip sampling of the pyritic quartz veins yield high grade assays results included, 2.62 g/t, 4.91 g/t and 40.8 g/t Au. The samples were taken along the extensive fault lines which hosted quartz veins that were last mined for gold during the late 1890s and early 1900s. Ore grade rock chip areas have been delineated 3.36 kilometres north of the current tenure area with uranium assays varying from 0.1% up to 53.6% U. Similar high grade metamorphic rocks types are located in EL25906 which has the potential to repeat similar uranium grades. Data generated by the program indicated several areas of interest within the Exploration Licence area. Cumulative strike length extends several thousand of metres. Within these areas there is extensive silicification and also carbonalisation and pyrtitisation. Further work is warranted over these target areas. During the month of August 2008, a review of re-processed and re-interpretation of magnetic and radiometric data from the Northern Territory Geological Survey Database was undertaken. The geophysical images were processed by Asis International Pty Ltd for use in identifying exploration targets for uranium, base metals and gold. Eight untested highly prospective first-order radiometric and three extensive magnetic targets were identified which had not been previously examined by historical field programmes. The area is favourable for vein and disseminated uranium deposits, pegmatitic types in granitoids and secondary calcrete uranium deposits. High grade vein style gold mineralisation has also been identified within EL25906.