AC 74 Kurinelli annual report year ending 21 July 2010

Abstract

AC 74 covers the main part of the Kurinelli goldfield, situated in the northeast Davenport Province about 140 kilometres southeast of Tennant Creek in the central part of Northern Territory. Gold mineralisation was first discovered in the area in 1898 by prospector - explorer Davidson but this area is regarded as a greenfields area with respect to gold and accordingly has only received limited attention. The exploration activity in this region is mostly restricted to local prospectors attempting to recover gold nuggets using metal detectors. Several hundred to several thousand ounces of gold are estimated to have been recovered in this way over the past 10-20 years. Arafura was the first company to conduct exploration in the area using modern techniques. Arafura acquired semi-detailed geophysical survey data over the region and followed this up with systematic regional, and then detailed, gold-in-soil geochemical surveys. A number of geochemical anomalies were identified and some of those were drilled to test for gold mineralisation at depth. Results to date have been encouraging and have shown that quartz vein hosted gold mineralisation is present at depth. However to date, no economically significant gold mineralisation has been identified in the Kurinelli area. No on-ground exploration activity occurred during the last reporting period. Activities were focused on finding a suitable JV partner to continue gold exploration at Kurinelli. In an attempt to progress exploration, minor office based desktop studies occurred. The office based activities concentrated on developing an exploration strategy, data package and map outlining exploration target areas based on accumulated knowledge in the region. The desktop study reveals that linear magnetic targets (lows, fault zones with potential to host mineralised quartz veins) exist within the area and a number of untested gold-in-soils geochemical anomalies should be explored further.