AC 74 Kurinelli annual report year ending 21 July 2006

Abstract

The Kurinelli goldfield is situated in the northeast Davenport Province in the central part of Northern Territory, 140 kilometres southeast of Tennant Creek. Gold mineralisation was discovered in the area over 100 years ago in 1898 by prospector/explorer Davidson but the region has been subjected to only limited, spasmodic attention since that time. Current activity by local prospectors in the area is directed towards recovery of gold nuggets from shallow alluvial and colluvial deposits 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. Systematic exploration commenced with the granting of AC 74 to Arafura Resources. Initial results from the programme confirmed gold potential in the area and follow-up sampling was required to confirm the nature of gold anomalism. The results of follow-up more detailed systematic soil sampling programmes are the subject of this report. In addition to this an RC drill testing programme of the anomalous zone occurred in May-June 2006. Final laboratory assays and repeat sampling to confirm the results were still in progress at the end of the licence period. Hence the detailed geochemical results of the 2006 RC drilling programme will be reported in the following annual report.