GR124 Combined annual report for period ending 12 February 2013, EL 9725 and EL 10136 Hammer Hill Project

Abstract

Arafura was issued Sacred Site Clearance Certificate number C2012-061 for reconnaissance field work activities on 29 June 2012. Reconnaissance fieldwork was conducted in 2012 to review the potential of the Holsteins REE prospect and follow up the highest priority targets of Dow (2010). In addition reconnaissance exploration was conducted over a distinct geophysical feature in the Holsteins airborne survey. Unfortunately the main part of the Holsteins REE prospect is excluded from exploration activity under Sacred Site Clearance Certificate number C2012-061. Despite this set-back to planned activities, reconnaissance exploration was conducted over the remainder of the Holsteins prospect. Reconnaissance exploration and prospecting activities confirmed the previously reported distribution of REE mineralisation and failed to locate any additional mineralisation in this area. The mineralised Lodes are low-grade and light REE-enriched, relatively thin, widely-spaced veins that are subvertical with preference for down-dip structural extensions. Hence, there is little evidence to suggest a potential for substantial REE-mineralised tonnage per vertical metre. These factors along with the mineralogy and the remoteness of the site all suggest that Holsteins is uneconomic at present. Three other buried geophysical targets within the project were evaluated via biogeochemistry. These samples failed to highlight any evidence for significant REE mineralisation but suggest there may be locally elevated Zn, Cu and Mo. The meaningfulness of these elevated results is yet to be determined.