2010 Relinquishment report for EL 25422, EL 25423 and EL 25728

Abstract

AAR has reprocessed geochemical data and Geotem, gravity, aeromagnetics and landsat images for the whole project area. BHP previously flew Geotem over about 20 percent of the VRB project area but conducted no significant ground follow up. This data has been reviewed by Southern Geoscience geophysical consultants identifying 17 prospective Geotem conductors within the two AAR tenements forming the basis of this report. Digital capture of open file geochemical data by AAR of six 1:250,000 sheets has resulted in a VRB database consisting of 23,734 stream sediment samples, 375 rock chips, 191 soil samples and 78 drill holes for 8,014m of drilling. The majority of this drilling was by Geopeko, outside current AAR tenure, in the vicinity of the Limbunya Fault. There are only five drill holes within the existing AAR tenements that were designed to test the base metal potential. These included a stratigraphic hole by the NTGS and drilling by Australasian Minerals in 1971. During 2007, fieldwork by AAR included stream sediment, soil and rock chip sampling programs. This work has been successful in that the stream sediment samples have confirmed the robustness of previous anomalies identified and highlighted prospective areas of interest in the vicinity of the Victoria River Downs Homestead. The high level of surficial geochemical anomalism within the Victoria River Basin may represent a halo to a large base metal mineralizing system. Manganese alteration located on the western side of the AAR tenements may also represent an outer alteration halo to this system. The geochemical anomalism combined with the age of the underlying stratigraphy, unique structural settings adjacent to potential growth faults highlights the potential for a significant buried SedEx deposit within the Victoria River Basin. During 2009 AAR conducted a helicopter-supported gravity survey, consisting of 1,589 gravity readings, in two areas on granted Victoria River Downs tenure. The northern part of the survey (based on readings spaced 1 km x 1 km) was designed to target a major north south fault and associated splay faults and domes over a strike length of 50 km near Victoria River Downs Station. This area contains extensive stream sediment geochemistry zinc-lead anomalies. The southern half of the survey in the Mt Sanford area (100 km south west of Victoria River Downs Homestead) was also conducted initially on a 1 km x 1 km basis and then infilled to 500m x 500m.