Annual report on EL 24887, reporting period 8 August 2009 to 7 August 2010

Abstract

EL 24887, located approximately 80km southeast of the town of Tennant Creek, was granted to Castile Resources Pty Ltd (Castile) on 8 August 2006. The area is considered prospective for copper, gold and base metals mineralisation associated with Iron Oxide Copper Gold (IOCG) mineralising systems within the Proterozoic Warramunga Formation. The margin of the Cambrian Georgina Basin underlies the tenement, and this is known to be rich in phosphate-bearing rocks in many areas. Castile has a large tenement holding in the Tennant Creek region. Exploration effort by Castile in the Tennant Creek region for the 2009/10 period concentrated on the Rover field, where a deep drilling program was successful in defining a resource (5.3 million tonnes @ 6.1 gm/tonne gold-equivalent) of Cu-Au mineralisation beneath deep Palaeozoic cover. Historical exploration has been carried out over the region sporadically over the past 40 years. Much of the work has been restricted to airborne and ground geophysical interpretation, and very little drilling has been used to test the geology and anomalies at depth. The prospective rock sequence for Tennant Creek style mineralisation is largely covered by moderate thicknesses (up to 70m) of Cambrian sediments, which has deterred previous exploration workers. The cover sequence does not appear to have had any sampling undertaken for the phosphate potential.