Geophysics and Drilling Collaborations Final Report for EL 27475 Bundara Creek Project 2012

Abstract

Under the Northern Territory Department of Mines and Energy?s Geophysics and Drilling Collaborations program Western Desert Resources Limited (WDR) was granted funding for the drilling of one 600 m hole east of Elliot. The project area lies near the southern edge of the Beetaloo Basin, which is known to include upper McArthur Basin Mesoproterozoic Roper Group sediments, and possibly the full suite of McArthur Basin sediments. The drill hole, 12BC001, targeted a gravity high outlined by an infill gravity survey undertaken by WDR over an existing regional gravity high previously highlighted by regional government surveys. The conceptual target was stratiform sediment hosted base metal mineralisation within the organic-rich Velkerri Formation of the Roper Group. The hole was positioned near a geophysical structure that appeared to be bounding the gravity high which was interpreted as an intrusive. Drilling commenced on 10 October and finished on 26 October 2012. The vertical hole was terminated at 605.6 m after having intersected Cambrian Tindall Limestone and interpreted Mesoproterozoic Moroak Sandstone and Velkerri Formation of the Roper Group beneath younger sedimentary cover sequences. There was very minor mineralisation in the form of hematite veins in Moroak Sandstone. The source of the gravity high remains uncertain as no intrusives were intersected. The Moroak Sandstone is silicified and so a horst block or palaeo-mesa capped by the Moroak quartzite is a possible explanation for the density anomaly. Processing of the core was completed in early December. Several samples were cut from the core and submitted for multi-element chemical assay. Assay samples included hematite veins in silicified fractured sandstone, mica-clay as alteration and fracture infill in siltstone, and chlorite altered mudstone with a thin organic layer. No significant assay results were recorded. Sections of mudstone and siltstone have a pervasive red to brown colouration due to weak hematite alteration. A commercial contractor carried out wireline logging of gamma, magnetic susceptibility, density, conduction, resistivity and deviation.