2011 Annual report for EL 25422, EL 25423, EL 25728, EL 27366 and EL 27934 for the period 7 March 2010 to 6 March 2011

Abstract

The Victoria River Basin is highly prospective for Proterozoic sediment hosted lead - zinc mineralisation showing strong geochemical anomalism supporting a coherent geological model. Geological reconnaissance and interpretation of government outcrop mapping supports the concept of localised basins, shale rich, with potential to host base metal mineralisation adjacent to growth faults. The recently collected gravity data has assisted in interpretation of the geology and the development of targets. The most promising targets have been developed in the Mt Sanford area where a broad gravity low is highlighted, sub parallel to and east of a major NW trending fault (Pear Tree Fault). This area is interpreted to be a potential shale basin. Two areas within this gravity low have been selected as potentially to be dilational sub basins. It is recommended that at least one of these targets is tested by vertical reconnaissance drilling to a depth of 300-400m. In addition 5 discrete gravity anomalies in the Mt Sanford area have been highlighted as potential direct targets. Current gravity data density of 500x500m is still too broad to adequately model the depth of these anomalies. Gravity anomaly G1, located within the main gravity trough is also recommended for reconnaissance drilling. The large domal structure just north of the Victoria River Downs Station centred on the Fitzgerald Range remains an area of interest due to the high Pb geochemistry in streams, rock chips and soils on the south eastern edge of the dome. However as no major faults are mapped in this area or reflected in the gravity, (despite the 1km x 1km data density) the potential for growth structures in the area are considered to be limited. A salt dome model proposed by earlier explorer BHP may still have some viability. A regional gravity low could support this theory. The geological interpretation has highlighted at least three areas within the Gregory National Park where sub- basins may have been developed adjacent to growth structures. One of these areas has highly anomalous Zn stream sediment geochemistry while the other two areas are deficient in geochemical data. AAR applications cover these areas, however there is uncertainty about the status of tenements. It is anticipated that ownership of the park will revert to native title and that negotiations to gain access for exploration purposes could then commence.