Annual report for EL 24602 Port Keats for the period ending 8 October 2010

Abstract

During the reporting year, a review of historic seismic data and an airborne magnetic survey to test for a possible salt diapir were completed with a total of 474 line km flown at a line spacing of 200m. Geophysical interpretation suggests a salt dome with an apex of approximately 1km and diameter of 2.0 to 2.5km. The aeromagnetic data indicates that the apex of the salt dome is about 150 to 200m below the sea floor and extends to at least 800m depth. Water depth is only about 6m and the centre of the target is about 1km from land. An exploration target, based on these dimensions, is estimated at about 6Mt of salt per vertical metre of the dome. A seismic traverse is recommended in two directions, north-south and east-west, over the centre of the diapir signature in the magnetic 3D inversion to accurately locate a drill hole to intersect the interpreted diapir at it?s shallowest location. Minemakers endeavoured to undertake a marine drill test of the target using a jackup rig or a drill rig on an anchored barge. This would have the advantage of allowing a vertical drill hole test. However, it was not possible to obtain a suitable platform prior to the on-set of the wet season and it also became apparent that the costs would be exorbitant due to Australian coastal shipping practices. It is now intended to undertake a drill test from a land based position following the wet season.