EL 26034 Tennant Creek Project, Annual report, reporting period 25 February 2011 to 24 February 2012

Abstract

Exploration for the year ending 24 February 2012 included continuation of negotiations on the draft heritage agreement with the CLC, flying a helicopter-borne EM (HeliTEM) survey over portions of the tenement, re-logging and sampling of 2 previously unreported diamond drill holes on the tenement, reprocessing of detailed helicopter borne aeromagnetics over the tenement in light of recent drilling results by Emmerson Resources and a potentially new style of mineralisation within the Tennant Creek region, review of historic data, and report writing. Because of the sensitive nature of negotiations in this and other parts of the region, and the discovery of the Rover 1 Deposit, Westgold will not commit to ground exploration until the CLC and the Traditional Owners have ratified a heritage agreement for the tenement which allows exploration access on the ground. Consequently no on-ground field work was completed during the year. Previous historical exploration has been restricted to flying aeromagnetic surveys at various times, the testing of a number of areas by vacuum geochemical drilling to 5m depth, and two diamond drill holes. Ten of the 19 graticular blocks which comprise EL 26034 have not been tested on the ground. Future work planned for EL 26034 will assess the potential for classical Tennant Creek style magnetic ore bodies as well for a new style of mineralisation away from typical magnetic targets as recently demonstrated by Emmerson Resources via detailed interpretation of the newly acquired HeliTEM and aeromagnetic data in conjunction with historical geochemical data sets. With only limited work completed in the tenement area, the potential for deeper targets has not been tested. Proposed work activities being assessed include ground IP and additional HeliTEM surveys.