EL 22537 Dulcie Final report 16 July 2001 to 15 July 2011

Abstract

This report details exploration work carried out by Elkedra Diamonds, Uramet Minerals Ltd - Intercept Minerals Ltd within EL 22537 in the Northern Territory between 15 July 2001 and 15 July 2011. The tenement was originally held by Elkedra Diamonds NL, and was transferred to Uramet during the 2007 season. Uramet changed its name to Intercept in July 2011. Elkedra exploration included; Stream sediment and loam sampling, geological photo interpretation, magnetic surveys and drilling of magnetic anomalies. In June 2007, Uramet was divested from Elkedra, with the aim of exploring Elkedra tenements for minerals other than diamonds. The mineralisation within the project area occurs within the Arrinthrunga Formation which predominately comprises a shale and carbonate sequence, which includes several stromatolitic reefs. One of the stromatolitic reefs hosts the historical Kings Workings. The mineralised area is extensively silicified, containing variable amounts of barite (more extensive in the northern part of the project area), galena and sphalerite. Work in the Box Hole area during the reporting period was concentrated on base metal exploration over the former stromatolitic reefs. This work consisted of mapping, soil and rock chip sampling, VTEM, IP and gravity surveys, vegetation geochemistry, and drilling. The various geophysical and geochemical methods led to target generation, and those targets with an expected depth of less than 75m were drilled in the 2008 RAB program, with a number of anomalous lead and or zinc intercepts returned. During 2010, consulting MVT experts CSA Global were engaged to review and evaluate all available data on the Box Hole MVT Project, and to make recommendations on future work. CSA concluded that previous work has focused on testing close to outcropping mineralisation, and has not tested significant areas of shallow stratigraphy close to potential feeder zones. In addition, significant target positions are likely to exist at deeper stratigraphic levels and are only tested by extremely limited deeper diamond drilling. The known mineralisation may represent leakage from a more substantial mineralising system at depth, in host rocks more favourable than the mixed carbonates and clastics at shallow depths. The EL has passed the 10 year period, and was unable to be renewed. Intercept consider that potential for the discovery of an MVT deposit still exists, and consequently has applied for an Exploration Retention Licence over most of the pre-existing EL.