Annual report on EL 23791 Mt Bundey for the period 21 January 2004 to 20 January 2005

Abstract

Exploration activities during the reporting year comprised a review of historical data by Territory iron personnel and consultant geologist Mackay and Schnellmann, and reprocessing and re-interpretation of available aeromagnetic data on the property by Southern Geoscience Consultants and Resource Potentials. This work confirmed the original anomalies evident in 1964 survey data and that the magnetic data would indirectly detect haematite mineralisation associated with underlying magnetite mineralisation. A total of 14 magnetic targets of varying follow-up priority was detected in the data. Of these, target A5 appears to be the most similar to the Mt Bundey magnetic response. It was also concluded that the data was too widely spaced to delineate magnetic bodies for drill targeting with precision, and acquisition of high resolution (50 m line spaced) airborne data was recommended. Year 2 exploration activities planned for the 2005 field season include: the acquisition of new, high resolution (80m line x 25m height) airborne magnetic and radiometric data; follow-up work comprise gridding, mapping, geochemical sampling, ground magnetic surveys and scout RAB drilling of aeromagnetic anomalies; and where appropriate definition RC drilling to determine resource grade and tonnages.