EL 10370 First annual report for the period 20 March 2001 to 19 March 2002

Abstract

Exploration Licence 10370 Barkly, located approximately 45 kilometres east northeast of Tennant Creek, was granted to Giants Reef Exploration Pty Ltd (Giants Reef) on 20 March 2001 for 6 years. Under a Strategic Alliance agreement between BHP Billiton and Giants Reef, BHP Billiton are providing funds for Giants Reef to explore EL 10370 and other selected project areas within the Tennant Creek region. Exploration Licence 10370 is one of two contiguous tenements forming the Barkly Project Area and adjacent Exploration Licence 10371 are being explored concurrently. The Barkly Project Area is centred over an elongate gravity anomaly trending NNW-ESE through the northern part of EL 10370. Targets are major base metals/precious metals deposits. Secondary targets are Tennant Creek style goldcopper-bismuth deposits. EL 10370 is subject to an Indigenous Land Use Agreement (ILUA) between Giants Reef and the Native Titleholders of the Tennant Creek region and the Central Land Council. A large number of other tenements and EL applications in the region are also subject to the ILUA. Clearances to enter were obtained from the Native Titleholders, through the Central Land Council. Exploration during the first year included a literature search, reconnaissance, rock chip sampling and geophysical assessment of recent aeromagnetic and gravity information. Interpretation of the recent NTGS/AGSO gravity data over the target gravity ridge in EL 10370 suggests the ridge is caused by the regional lithology rather than by masses of anomalously dense rock that might provide drill targets. This interpretation has cast doubt on the usefulness of drilling a test hole into the peak residual gravity anomaly. Two magnetic highs fairly close to the peak residual gravity anomaly on the gravity ridge were assessed. The anomaly at 448200E 7846400N appeared to be the shallower, with a modelled depth to top of around 200m. Drilling a test hole here is under review, as the anomaly may represent a Warramunga Formation-hosted (Tennant Creek type) body which is not the main target of exploration in EL 10370. Another magnetic target was noted in the Explorer 16 and Explorer 66 area in the southern part of EL 10370. This anomaly also offers a chance for the discovery of a typical Tennant Creek type of Au-Cu-Bi occurrence in a locality where little drilling has been done in the past. It is clear that EL 10370 holds considerable potential for Tennant Creek-type ironstone hosted Au-Cu-Bi orebodies, but its potential for other styles of major base metals/precious metals deposits is under review.