Tenement summary report for EL 27631 for the period 7 June 2010 to 6 June 2011

Abstract

The area is considered prospective for manganese (Mn) and lead-zinc (Zn/Pb) mineralisation. Mn mineralisation and particularly Cretaceous sedimentary deposits of the style seen at Groote Eylandt are the main prospect within the project area. Stream sediment sample assays within the exploration licence show signs of high Mn values which appear to be associated with Proterozoic rocks. Evidence of Pb/Zn mineralisation, particularly the SEDEX style of the McArthur River type was found by reviewing the NT geochemical database. Three Pb/Zn mineral occurrences lie within the McArthur project area. The Proterozoic rocks in the McArthur Basin have high prospectivity for Pb/Zn mineralisation. Such deposits often have a halo of higher Mn in surrounding rocks. The presence of higher Mn in rock analysis, the geological location and lack of detailed exploration make this a prospective area for Pb/Zn mineralisation. In order to further assess the McArthur project area for potential mineralisation a field visit is required. The main aim of the field visit is to follow-up potential Mn mineralisation.