MLN 726 and MLN 727 Annual report for year ending 31 December 2007

Abstract

The Bulman project is located near the Bulman Aboriginal community within Arnhem Land, approximately 320km north east of Katherine. This project consists of two exploration licences (EL 23814 and EL 25931) and two mineral leases (MLN 726 and MLN 727). This annual report covers only MLN 726 and MLN 727. Reconnaissance exploration along with a geochemical soil sampling program and a detailed GIS study has been completed in 2007. The first pass geochemical exploration program has identified a range of Pb/Zn anomalous levels suggesting a very strong exploration potential. The higher Pb/Zn values are associated with the grey massive fine grained dolomitised siltstone. The aeromagnetic data suggests that the extreme south of the study area, which contains all the known occurrence of Pb and Zn mineralisation in the Bulman area, is underlain by a reversely magnetised sill of Derim Derim Dolerite that has intruded the carbonates of the Dook Creek Formation. The magnetic responses of the Derim Derim Dolerite have allowed the mapping of numerous faults in the area including a major east-west fault system along the northern edge of the Derim Derim Dolerite and a system of lesser north south faults. In addition, various northeast trending faults appear to occur in the area. Many spatial correlations occur between the interpreted fault system and known occurrences of Pb-Zn mineralisation and soil Pb and Zn geochemical anomalies. Given that Mississippi Valley-type Pb-Zn mineral deposits are often located in fault and fracture systems, the traces of the interpreted faults should be considered as localities for future exploration. In the absence of mineralised outcrop, the only way to explore for Mississippi Valley type Pb-Zn deposits is by extensive drilling. Such drilling can be guided by the locations of possible faults and soil geochemical anomalies. Another approach is to use induced polarization surveys. Extensive Reverse circulation (RC) drilling on 75m to 50m spaced 'offset' grid intervals has been planned for the year 2008.