AC 74 Kurinelli annual report year ending 21 July 2005

Abstract

Systematic regional geochemical soil sampling was completed over the Kurinelli Zone in September, 2004. A total of 821 samples were collected from 782 sites spaced 500 metres apart on lines also spaced 500 metres apart. An area of approximately 200 square kilometres was covered by the survey. No samples were collected from within exclusion zones around Aboriginal sacred site advised by the Central Land Council or from within granted mineral claims, and priority applications for mineral claims, held by unrelated parties. Two soil size fractions were collected at each site. A -80# fraction which was subsequently analysed for Cu, Pb, Zn, Co and Ni; and a -2 millimetres fraction which was analysed for low level Au, Pt and Pd. Numerous elevated gold values were obtained. From the 782 sites sampled, 149 sites (19%) returned a value of 2 ppb Au or more; 39 sites (5%) returned a value of 5 ppb or more; 14 sites (1.8%) returned a value of 10 ppb Au or more; the highest value was 234.5 ppb Au at site 137180; the second highest value was 40.5 ppb Au; and 437 samples returned less than the detection level of 1 ppb. Results of 10 ppb and more appear to be distinctly anomalous, and results of 3-10 ppb Au appear to be possibly anomalous. The results define a coherent zone of elevated gold-in-soil covering an area of about 25-35 square kilometres. Elevated levels of gold-in-soil surround all known areas of past gold mining activity and a halo of 1-2 ppb Au surrounds the bulk of the higher results. The zone of elevated gold includes several areas which are considered anomalous. The largest of these is approximately 6 kilometres long and up to 2.5 kilometres wide. This anomalous zone envelops Arafura's granted mineral claims in the area (MCNs 950-953). Resampling in December, 2004, at and around the site of the highest value, returned results between 5-38 ppb Au and while this work has not reproduced the original result (291/178 ppb Au), the overall Au level around the site (average 13.5 ppb Au) fully supports the broad zone of gold anomalism defined in the initial sampling and it is entirely consistent with the adjacent results from that initial sampling. Geological reconnaissance in the vicinity of sample site 137180 has located an array of ferruginous quartz veins, a chip sample from which returned gold assays of 0.36 and 0.44 g/t Au. This appears to represent the first demonstrated occurrence of hard-rock gold mineralisation at Kurinelli well removed from massive quartz reefs which are the source of nuggetty gold recovered over the past 15-20 years using metal detectors. Overall, the 2004 soil sampling program at Kurinelli has been successful both in defining a broad area of basement gold anomalism, and thus significantly reducing the area of the Kurinelli Zone that can be considered prospective for basement gold mineralisation (from about 200 square kilometres down to 25-35 square kilometres); and also in identifying several specific targets within that reduced area for the next phase of follow-up investigation. Peak Pt and Pd values of 3 and 4 ppb respectively were obtained from different samples and while these do not appear anomalous, limited follow-up sampling around the respective sites is probably justified.