Partial relinquishment report on EL 26183 McArthur Basin Project, 13 February 2009 to 12 February 2010

Abstract

EL 26183 forms part of Castile Resources' McArthur Basin Project, 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 holds title to EL 26183 through its wholly-owned subsidiary Castile Resources Pty Ltd (Castile). EL 26183 ended its second year of tenure on 12 February 2010, and was due for 50% relinquishment on that date. A total of 28 blocks were relinquished, and 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 26183 area has been covered by several previous tenements, and considerable surficial exploration has been completed in the region. No field work was carried out on the relinquished portion of EL 26183 during the reporting period. Exploration activities were restricted to data compilation and interpretation, and the acquisition and image processing of high-resolution aerial photography over the tenement. Compilation of previous work suggests that the 28 relinquished graticular blocks of EL 26183 were underlain by sediments and volcanics of the Cambrian Georgina Basin, covered by extensive sheets of Cretaceous sediment. Consequently they are considered to have low prospectivity for base metals.However, very little drilling work appears to have been completed over the relinquished portions of EL 26183. An airborne survey for digital and geo-referenced aerial photography was flown by Westgold during the reporting year. This survey will enable Westgold to more accurately locate previous exploration activities and results, and assist in the planning of future mapping, sampling and drilling. 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.