Tenement summary report for the period 24 March 2012 to 23 March 2013 for EL 27483

Abstract

Exploration work on EL 27483, referred to as USI's Lorella Project, has identified anomalous base metal and manganese occurrences. The base metal mineralisation appears to be fault controlled and has some similarities to other mineralisation in the Mount Isa Belt and McArthur Basin. In particular copper mineralisation at Sly Creek outcrops along a 400 metre section of a northwest trending fault zone. Soil geochemistry suggests there is further mineralisation in the surrounding area and IP surveys indicate the mineralisation continues to the north and south and is open at depth. Copper grades up to 25 percent make this occurrence worth further investigation and at least four diamond drill holes are recommended to test the mineralisation at depth. Manganese mineralisation occurs to the northwest of the Sly Creek Copper occurrence, appears surficial and gives no significant IP or EM responses (using a CMD frequency domain instrument). The occurrence remains of interest because of the apparent proximity to base metal mineralisation and should not be discounted. The results to date on the EL are encouraging and further soil surveys and geophysical surveys are recommended to explore for further concealed mineralisation.