EL 24932 Annual report year 3 period ending 16 July 2009

Abstract

Acacia Minerals are targeting base metals, gold and uranium mineralisation primarily associated with the Whites Formation and Coomalie Dolostone. The company also recognises the significant presence on EL 24392 of the 'narrow, magnetically defined dolerite dykes' shown on the NTGS map. These may have a potential for platinum group metals and gold mineralisation. During the soil sample traverse at the east end of line 8589950N outcropping gossanous Wildman Siltstone was noted. These gossans were sampled on Dec 8th 2008 producing 7 samples. Two phases of auger sampling were conducted: Phase 1 on 14th September 2008 and Phase 2 on 20th and 21st November 2008. These were only in part reported on in the Year 2 Annual Report which was due July 16th 2008 but submitted November 2008. This document reports fully on both phases. Samples were taken using a tractor mounted auger from a maximum depth of 1 metre. The tractor auger was hired through a local freehold land owner. Each site produced one sample sieved to -2mm and one course fraction, each weighing approximately 200 grams and each given the same sample number. The auger hole was backfilled immediately after sampling, that is, within 5 minutes of having been dug. The fine fraction was sent to a laboratory in Darwin for assay. The course fraction retained for geological examination after assays were received and for possible additional assaying. Phase 1 of soil sampling comprised of an east- west line extending along 8587000N from the western boundary of contiguous EL 26434. This produced sample nos.110753-110801 totalling 48. The Phase 2 of soil sampling consisted of an east-west line extending from the southwest corner of contiguous EL 26434 to the northeast corner of contiguous EL 25027. This produced sample nos.111142-111158 totalling 17. Phase 2 also comprised a soil sample line across the nose of the plunging anticline to the north of contiguous EL 26777. This line followed approximately northing 8589950N and extended across the interpreted Whites Formation in to the Wildman Siltstone either side. This produced sample nos.111159-111204 totalling 45. Of these samples only sample 110797 from 8587000N, 731800E returned anomalous base metal values of Cu 1170 ppm, Pb 281 ppm and Zn 489 ppm. This sample, from within the interpreted Whites Formation, appears to be on strike with similar values obtained from soil samples on contiguous EL 25027 to the south. To test for the presence of the NTGS interpreted 'Basic dyke or sill' Acacia Minerals carried out a short ground magnetic survey across that mapped linear feature as shown on the published map. A Scintrex MP-2 magnetometer was used and readings at 25m centres were taken along an east-west line. The short ground magnetic traverse across the interpreted NTGS 'magnetic basic dyke' failed to register any obvious anomaly. Field work by Acacia Minerals on EL 24932 has been of limited success during Year 3. Neither reconnaissance rock sampling nor first pass soil sampling have returned any significant results except for the minor Cu-Pb-Zn assay from one sample at the western end of the 8587000N traverse. However, in the context of highly encouraging results from contiguous tenements held by Acacia Minerals, additional work is warranted and recommended.