EL 26535, EL 26539, EL 26556 and EL 26557 Carpentaria Project Group technical report for the period ending 31 August 2014

Abstract

During this reporting period, Sinosteel undertook an internal review of exploration work completed since the grant of the tenements. Independent geological and geophysical consultants were contracted to complete new regional and project scale desktop studies, and provide an update to the company regarding the mineral prospectivity of the project area. The exploration targets generated from these studies were combined with existing targets, and then prioritised to inform exploration drill planning. A site visit was made to inspect the higher priority target areas and consider possible drill sites and access tracks. The anomalous VTEM airborne EM responses of some of the existing targets were modelled in 3D to estimate the depth and orientation of the conductive anomaly sources. The existing MMP was updated with new drill plans and submitted to the Department, but approval for exploration drilling was not received until late in the reporting period. Therefore, the drill program was started in the next reporting period and was completed in September-October 2014, where 34 RC holes were drilled for a total of 2,078m. The RC drilling results will be presented in the next annual report. Tenement EL 26535 was surrendered at the end of the reporting period as no explorations targets had been identified within the tenement and the tenement is considered by the company to have low mineral prospectivity. In addition, the tenement is wholly contained within the boundaries of the Seven Emu pastoral lease, and the owner and manager of this station has been very obstructive to any exploration work within the station area.