EL 28516 Chilling Creek Annual exploration report for period ending 8 September 2012

Abstract

Exploration on this tenement was postponed whilst the company re-organised its exploration strategy and land holdings in 2011-2012. This re-organising is progressing successfully, although taking longer than expected, and includes the acquisition of a large gold project in far north Queensland from Republic Gold. Review of the exploration potential of the tenement during the year showed the following: Exploration potential on this tenement is moderate with gold, base-metal and uranium targets. To the east structural and stratigraphic settings are good with Lower Proterozoic Basement (Burrell Creek Formation) proximal to the Giants Reef Fault (a major mineralising structure). Also the tenement is situated along strike of the controlling structure for the Daly River Mineral Field. The mineral field sits on the western limb of a south plunging anticline which strikes south west towards EL 28516. It is possible, dependant on structural controls, that the target units are at drillable depths within the tenement. Available NTGS EM sections over the tenement shows folded conductive units in the Burrell Creek Formation at drillable depths. These conductors highlight structural targets (anticlines and faults) and are likely to be rocks favourable to mineralisation (carbonaceous shale units).