Final annual and surrender report on EL 26038, for period ending 8 February 2010

Abstract

This report summarises gold exploration activities undertaken by St Barbara Limited (SBM) on the Tenant Creek Project EL 26038 from grant on the 7 February 2008 until its surrender on the 8 February 2010. EL 26038 has an approximate area of 360km2 and is centred 85km east-southeast of Tennant Creek in the Northern Territory. The tenement contains an iron oxide coppergold (IOCG) target defined by external consultants to SBM. The target occurs within concealed eastward extensions of the prospective Tennant Creek Inlier. The inlier hosts several high grade Au-rich deposits (including Juno, Geko, Warrego, Nobles Nob, Peko and White Devil), which have produced over five million ounces of gold and over 440,000 tonnes of copper in the last 60 years, ranking it within the top ten Australian goldfields. Exploration comprised open file data review and compilation, depth to basement geophysical modelling, a 669 station gravity survey, data processing and incorporation into GIS, 3D inversion and geophysical modelling, interpretation and targeting. Depth to basement modelling revealed 3 target areas (TC102, TC103 and TC119) shallow enough to be considered worthwhile for exploration drilling/mining. The gravity survey covered the western portion of EL 26038 in addition to infill surveys over the 3 target areas. The survey identified discrete anomalous gravity highs which require drill testing. Given the extreme lack of information regarding the depth to and nature of Proterozoic lithologies in these areas, SBM applied for and was given a co-contribution grant of $50,000 by the Northern Territory Geological Survey to drill one to two diamond drillholes over the north western corner of TC102 to a total depth of 500m. However, due to changed corporate priorities during 2009 and its consequent effect on SBM's exploration strategy in Australia, a decision was made to relinquish EL 26038 early in 2010.