GR214 Daly Waters Project Annual group report 14 September 2011 to 13 September 2012

Abstract

This report details all the exploration within EL 27877, EL 27878 and EL 27879 which constitutes the Daly Waters Project, for the second annual period ending 16 September 2012. The licences are held by Natural Resources Exploration Pty Ltd and the target commodities are base metals, diamonds, and phosphate. The dominant activity was the drilling of a 317.2m diamond cored hole with associated downhole geophysics, measurements and sampling. This drilling was in collaboration with the Northern territory Government. The drill hole was completed to test the stratigraphy over the Daly Water Arch structural feature as no exploration has been previously undertaken within EL 27878 area, and the only historical drilling are water bores with limited available data. The single drillhole has confirmed the stratigraphy in an area and shown the Proterozoic rocks to be at around 139 metres depth at this location. Further work is required but initial observations are they are Proterozoic McArthur Group equivalents. Evidence of sulphide has been observed including chalcopyrite. Geophysics has shown the region is suitable for electrical based exploration and a potential target has been generated. Nine heavy mineral surface samples (total 144.77 kg) were also collected and processed during the reporting period for diamond exploration. The diamond exploration samples were negative for kimberlite indicators but the extreme wide spacing make this limited sampling inconclusive at this stage.