Report on EL 27380 for the period 9 March 2010 to 8 March 2011

Abstract

After extensive study of previous exploration work completed in the Francis Creek area it was concluded that there had not been an programme dedicated to the discovery of alluvial gold and or tin. The alluvium in this area was sampled by taking approx. 100 samples on a random pattern to a depth of 7-800mm and gravity concentrated by hand washing in a prospector's dish. Each sample was examined under a hand held microscope for visible gold and or tin particles. Several samples had the concentrates manually ground in the dish (steel) to show the presence of Iron. This was thought to be hematite as much of it was non- to weakly magnetic. The concentrates were not analysed for iron as the concentrates were not considered to be economically attractive. The location of gold particles visible to the naked eye usually assures a workable grade of material for an Alluvial gold operation with a minimum grade of 0.3gm/tonne Au. Some samples showed courser gold up to approx. 1mm. in size. No nuggets were located during the exploration work undertaken. The area of EL 27380 is considered to hold good potential for a workable alluvial deposit as the area, in general terms, drains to the north through this exploration licence area. It is considered that tin found in the southern area has originated from the granite intrusions to the south. The presence of tin in the alluvial material is thought to be as a result of weathering of the granite. There has not been (to the author's knowledge) any reported occurrence of workable grades of tin occurring in any of the granites. It is considered that there could be one or more palaeo-drainage systems in the area as the Francis Creek appears to be flowing under the conglomerate material forming the old road crossing in this area. Exploration work focused on the area of the old road crossing yielded some exiting results until it was realised that the gold seen was the result of some old stamp battery tailings located nearby. Despite this contamination of the area it is considered that this area should be investigated further by way of trenching to ascertain the potential depth and grade of material in this area. A series of approx 50 auger holes were drilled with a 100mm hand drill as a preliminary investigation. The resulting material was hand washed to replicate treatment in a gravity concentration circuit. All material over 6mm diameter was discarded after examination for nuggets. Random samples of the plus 6mm material were crushed and ground to see if there was any gold held in the stone. This exercise proved to be a waste of time. The practice should be continued however due to possible changes in the material being tested.