Annual report over Woolgni EL 23569

Abstract

The Woolgni Project consists of one granted Exploration Licence (EL 23569) and MLA 24342 covering 1,578 square kilometres approximately 220 km south of Darwin in the Northern Territory. The mineral lease area is situated approximately 55 km north-northwest of the township of Katherine and is accessed via the Stuart Highway. The Woolgni prospect is located within the Pine Creek Inlier, which on a regional scale, hosts a number of major gold deposits. The workings are hosted and surrounded by Lower Proterozoic Burrell Creek formation, which consists of folded greywackes, siltstones, minor conglomerate and rare tuffs. More locally, the Burrell Creek Formation forms a 60km2 inlier surrounded by the Mid-Proterozoic Cullen Batholith. In the southern portions of the tenements the Edith River volcanics have pierced the Cullen Granite and Burrell Creek formation and in places extrusive volcanics now form a shallow cap over the older units. Mining dates back to 1897 when Chinese miner's first extracted alluvial gold shed from the reefs. Mining of the hard rock source commenced soon after. Two adits were driven into o the western portion of the reef system and numerous shafts sunk. Hand picked ore reportedly averaged 30oz/ton. Recoded production is 3840 oz up to 1905. A small non JORC inferred resource of 150,000 T at 2.7 g/t Au using a 1.0 g/t lower cut was calculated, with excellent potential to delineate further gold mineralisation along strike and depth over the Woolgni deposit. Rock chip sampling reconnaissance conducted in 2006 identified several gold/uranium/copper bearing target areas which required follow up a detail soil and rock chip sampling program and potentially drill testing in 2007. In June 2006, J. Doepel, consultant geologist, of Continental Resource Management (CRM) was commissioned by Red Rock Resources Ltd (RRR) to carry out a field reconnaissance evaluation of the Woolgni project area for the recommendation of future exploration programmes over EL 23569 tenement.