Final relinquishment report on exploration on EL 28822, for the period 21 February 2012 to 5 June 2013

Abstract

Holdings Pty. Ltd (Argold) and Austasia Resources Pty. Ltd (Austasia) are located in the Dundee area of the Top End of the Northern Territory. These two Exploration Licences form the 'Dundee Glauconite Project'. A green clay-like substance fitting the description of the potassium bearing mineral, glauconite, was previously identified in the 2007 RAB drilling conducted by Uranex for determination of basement rock-types as part of their uranium exploration on adjacent ground. Glauconite is a weakly paramagnetic substance rather than ferro-magnetic. I can theoretically be detected in aerial magnetic surveys. In 2012, an examination was made of the open-file Company Reports (CR?s) relating Uranex?s work and also that of the several earlier generations of EL?s covering these EL?s and also to those on the adjacent ground. That examination established that although a lot of aerial magnetic work had been conducted, none was useful in predicting the location of glauconite. However a lot of percussion drilling had been conducted which confirmed the widespread distribution of the green clay. Exploration work in 2012 consisted in the examination of the CR?s as mentioned above, and a field reconnaissance of access onto EL 28822, which established that, contrary to previous perceptions, there is a good network of well-established vehicular tracks to provide access for the RC drilling proposed for 2013. In May 2013, the area was revisited to determine the full extent of the network of tracks, and to select suitable sites for the proposed drilling. The sites were selected on the basis that no clearing or earthmoving would be required to provide a drill pad. Advice was received from Tenement Administration service that the leaseholder of Crown lease on which the EL was located had applied to subdivide the Lease into residential lots. Such action made considerably reduced the prospects of a mine every being permitted to develop there. Notwithstanding the anecdotes of drillers, well-sinkers and pastoralists that green clay is quite widely distributed in the area, the shareholders in the project considered the project was not a good investment, and consequently surrendered the tenement.