Final report for MA 74 Kurinelli 22 July 2004 to 13 June 2014

Abstract

Arafura was the first to conduct significant exploration in this area using modern techniques. Arafura acquired semi-detailed airborne geophysical data over the region and followed this up with systematic regional, and then detailed infill, gold-in-soil geochemical sampling surveys. A total of 5,662 -2mm gold-in-soil geochemical samples were collected from the B-C soil horizon and assayed in six separate sampling phases in 2004-2007. This exploration activity demonstrated significant gold-in-soils geochemical anomalism in parts of the project area with a total of 1,165 sites (approximately 21 percent) yielding average Au values of 10 ppb or more, and 65 sites yielding 100 ppb or more. The highest average gold-in-soil value was 5,020 ppb on MCC 950. A number of gold-in-soil geochemical anomalies were targeted for exploration drilling. A total of 57 holes and 3,597 metres of slimline reverse-circulation percussion drilling was completed in 2006. Unfortunately, no economically significant gold mineralisation was identified in this drilling program with the best 2-metre composite RC sample being 6.77 ppm Au from 44 metres in KNRC019 and only 19x2 metre composites yielded average Au assays of 0.5 ppm or more. Follow up assaying identified the best one-metre individual average Au result of 11.7 ppm Au. The positive drill results suggested that it may be worth exploring the untested gold-in-soils geochemical anomalies elsewhere on MA 74. However it should also be noted that a number of exploration holes failed to interest mineralisation at depth indicating transported gold and transported cover. The assay results were considered encouraging and suggest that structurally-controlled quartz vein-hosted gold mineralisation is likely to be present. The thorough structural analysis and oriented drill core is needed to resolve the optimal drilling directions. Arafura's desktop assessment reveals that linear magnetic targets (magnetic lows, fault zones with potential to host structurally-controlled Au mineralised quartz veins) exist within the area. A review of the aerial photography and geological maps indicate large areas of transported cover. Hence it is highly likely that parts of the linear target zones have not been effectively sampled or sterilised by the regional soil sampling program. Arafura decided to concentrate its efforts on REE exploration at Nolans Bore and hence no on-ground exploration activity has occurred on MA 74 in the last few years. During this time Arafura attempted to locate a JV partner to continue gold exploration at Kurinelli but was unable to locate a suitable party. Given the narrow mineralised veins discovered to date and the lack of interested parties Arafura decide to relinquish this area.