Annual report, Plenty River project EL 23792 and EL 25007, for the period 20 December 2010 to 19 December 2011

Abstract

A second phase of ground EM surveys was completed in 2010 and this indicated a potential conductive geophysical target at depth and offset from the 2009 drilling target. A possible basin (base metal) style mineralisation model was inferred and 3 holes were planned to test the target. AusQuest applied for additional funding under the Northern Territory Government Drilling Collaborations Programme in May 2011 and received approval July 2011. The drilling programme at the Caroline prospect commenced in October 2011 and was completed in November 2011 (Sherington et al 2012). A total of two pre-collared diamond holes (11CPD004 and 005) totalling 1305.5m of drilling (comprising 280.9m of mud rotary pre collars and 1024.6m NQ diamond core) were completed. Drilling intersected a thick sequence of sulphidic (pyrrhotite) laminated sediments with interbedded felsic volcanoclastics and interlayered mafic sills. Physical property measurements on core confirmed the magnetic anomaly is caused by the pyrrhotite mineralisation and the gravity response is due to a thick section of gabbro/dolerite in the core of a synclinal structure. The presence of graphite in the laminated sediments is the most likely cause of the conductive response. Weakly elevated base metal values were encountered within the sedimentary package but no ore grade intersections were reported.