Report on Tennant Creek tenements for the period September 1984 to 30 June 1986

Abstract

In September 1984, Poseidon Limited gained control of 57.3 percent of Australian Development Limited's total issued shares, and by April 1985 as a result of a rights issue, increased its holding to 61.4 percent. Australian Development, with its subsidiary Nobelex Limited, holds title to 426 mineral tenements in the Tennant Creek Goldfield area covering 7,724.55 hectares (77.25 sq.km) of Warramunga Group sediments. Southeast of Tennant Creek a further 10 mineral leases covering 160 hectares are held in the Kurundi field. All leases cover magnetic features and-or known surface prospects. In most cases, by September 1984, only limited test drilling had taken place and many areas had not been taken to this stage. After two years of inactivity a resurgence of exploration commenced in October 1984 with the objective of drilling targets with the potential to provide shallow ore to feed the Nobles Nob mill. Since the poseidon Limited take over of Australian Development Limited, no annual report has been submitted to the Northern territory Department of Mines and Energy. This report updates to the 30 June 1986 all work carried out on the tenements held by Australian Development Limited and Nobelex Limited. Surface drilling was carried out on 19 prospects for a total of 9,282.6 metres (230 holes) percussion, 8,945.8 metres (116 holes) reverse circulation percussion, and 1,539.35 metres (19 holes) diamond drilling i.e. 365 surface holes were drilled for a total of 19,767.75 metres. Six holes (122m) were drilled underground (New Hope mine). Eight areas of economic gold mineralisation were defined. Three of these (Eldorado, New Hope and Rising Sun west) were mined by underground techniques and one (Black Angel) by open cut. The remaining four (Nob North, Golden Kangaroo, Northern Star and White Devil Deeps) are to be mined in 1986-1987. Ore treated at Nobles Nob mill during the last twelve months was from Nobles Nob mine stockpile (23,045 tonnes) Nobles Nob dumps (10,417 tonnes), Black Angel mine (19,007 tonnes), Eldorado mine (1,348 tonnes), Joker old mine dumps (1,448 tonnes), Rising sun West mine (6,950 tonnes), New Hope mine (1,111 tonnes) and Golden Forty old mine dumps (450 tonnes). A total of 63,776 tonnes of ore was milled with an average head grade of 6.07 g/t and recovery of 11,704 ounces. The mill closed on 25th June 1986 for maintenance and modification in preparation for receiving ore from Australian Development Limited's new mine developments. Magnetometer surveys were completed at New Hope-Plum-comstock, Nob South, Nob West, Burnt Shirt and Perseverence Extended, and infill magnetometer surveys were carried out at Mulga 1, Mulga 2 and Lone Star. Gravity surveys were completed over the Nobles Nob to Rising sun new metric mine grid and in the New Hope East-Plum-Comstock area. All leases are being systematically resurveyed and marked. several old imperial grids have been re-established in metric units. Data review and prospect evaluation on all tenement blocks continues.