Interim report for SEL 23662 (Cave Hills) for the period 3 April 2004 to 31 December 2004

Abstract

This is an interim report for SEL 23662 (Cave Hills) covering the period, prior to the commencement of the Tanami Exploration Agreement (TEA) 3rd April 2004 to 31st December 2004. Substitute Exploration Licence SEL 23662 is centred approximately 50 km northwest of The Granites Gold Mine. It is readily accessible via roads and tracks leading from the Tanami Road, which bisects the licence. The licence was granted on the 3rd April 2003. During the reporting period, exploration included a regional soil survey near the Challenger Prospect and an RC drill program over the Titania Prospect. Work Completed during the reporting period comprised of: petrology of drill core (17 sections), RC 14 holes for 2112m and 1948 samples, 124 soil samples (results to be included in next report). The SEL was also included in a Tanami-wide regional structural mapping project. This project commenced in October 2003 and is still in progress. In conjunction with the structural project, a number of ASTER (Advanced Spaceborne Thermal Emission and Reflection Radiometer) satellite images were purchased with the aim of determining the suitability of the imagery to provide regional lithological, structural and mineral alteration signatures. It is proposed that future work will involve the evaluation of prospect areas defined by target generation from the regional structural study. Conceptual targets outlined will be assessed using surface geochemical sampling and/or aircore / RAB drilling, depending on the particular geological and regolith settings. Based on a review of previous drill data and a better understanding of the regolith in the Titania prospect area 14 RC drill holes were completed to test strong arsenic and lesser gold anomalism beneath an interpreted gold depleted saprolith. Previous RAB, aircore and some RC drilling was deemed ineffective in testing for further mineralisation along strike of the Oberon Au Deposit. Regional soil sampling was completed to the west of the Challenger Prospect. Sampling was aimed at determining if the source of interpreted transported gold anomalism defined by previous sampling lay under cover in this area. A total of 124 samples were collected. Other work carried out at Titania has involved the further investigation of the prospect with a view to mining in 2005. This work was deemed necessary due to the significant technical problems associated with pit wall stability, pit dewatering and economic access identified in earlier work. The work required multiple consultants and contractors over a period of eight months, to date, to carry out work in the fields of Environmental Flora & Fauna studies, Geotechnical analysis of possible final wall stability, Ore & Waste characterisation and possible access routes. Also being carried out is a dewatering study to determine the system required to ensure dry mining conditions and identify a suitable water disposal technique.