Final technical report for EL 23592, for the period 12 February 2003 to 15 March 2010, Johnnies Reward Project

Abstract

Flinders Diamonds Limited (FDL) initially applied for EL 23592 in the Strangways Range area to investigate discrete regional dipolar magnetic anomalies which might be indicative of kimberlitic or lamproitic diamondiferous intrusive pipes. The Teck Cominco-BHP Billiton Alliance entered into a joint venture with FDL to evaluate the base metal potential of EL 23592 and other project tenements. The exploration target was polymetallic massive sulphide deposits. With the exception of known base metal occurrences geochemical sampling by the Alliance in 2002 did not define any base metal anomalies that warranted follow-up. In 2005 FDL sold the non-diamond rights in EL 23592 to Maximus Resources Limited (MXR). MXR was listed on the ASX on 26 October 2005. During 2006 MXR undertook geological reconnaissance on both a regional and prospect scale and flew an airborne electromagnetic and magnetic survey over the Johnnies Reward prospect area. MXR actively sought a joint venture partner to manage exploration on EL 23592 and adjacent EL 9529, EL 22759, ELA 26440 and MCS 38. On 23 January 2008 an option/farm-in agreement was executed with Minotaur Exploration Limited (MEL). MEL completed ground electromagnetic surveys at the Johnnies Reward prospect on EL 23592 in February, 2008. MEL geophysicists interpreted the results and undertook modelling to determine the relationship between observed conductive zones and previous drilling on the prospect. A gravity survey was completed over EL 23592 in conjunction with the Northern Territory Government's regional gravity program throughout the Arunta Province. The gravity results were interpreted by MEL geophysicists. The onset of the global economic downturn in late 2008 resulted in MEL reviewing its exploration projects and in turn deferring proposed ground EM surveys and drilling to follow up airborne EM and any gravity anomalies on EL 23592. MEL submitted a proposal under the NT Government's Bringing Forward Discovery program for joint funding of a proposed RC drilling program at the Johnnies Reward project. On 10 June 2009 the Department of Resources advised MEL that this application for funding had been unsuccessful. MEL then advised MXR that it was withdrawing from the option/farm-in agreement. MXR unsuccessfully sought a further joint venture party for the project and in turn surrendered EL 23592 on 15 March 2010.