Fourth year partial relinquishment report for EL 26183, 13 February 2011 to 12 February 2012

Abstract

Since commencement of the Option and Joint Venture Agreement with Westgold Resources Ltd and its wholly owned subsidiary Castile Resources Pty Ltd in September 2010, MMG has conducted a systematic desktop review of past exploration, processing and re-interpretation of regional geochemical data (stream sediment and soil) in conjunction with ioGlobal and a comprehensive regional structural interpretation of the tenement areas. In 2010, Dr Steve King from Solid Geology Pty Ltd was commissioned to undertake the regional structural interpretation. The interpretation of the results showed that basin and sub-basin development is far from simple and that both the NW and NNW trending fault systems have played an important role during deposition, mineralisation and deformation. In 2011, consultants ioGlobal were contracted to evaluate historic surficial geochemical sampling over the McArthur Combined Reporting Area Tenements and surrounds. While noting that data generally lacked a complete analytical suite of pathfinder elements, previous sampling was judged to provide adequate coverage in Zn, Pb & Cu and once levelled by mapped geology did not reveal any significant anomalies within the relinquished areas. Based on the systematic desktop review of past exploration and the comprehensive regional structural interpretation it was found that the blocks being relinquished did not fall within favourable geological environments for MMG?s target lead-zinc deposits in reduced siliclastics and carbonates of the McArthur Group.