Annual report of Exploration AN 364 Mount Fitch North Eleventh Annual Report

Abstract

Authority to Explore No. N364 (357.8 hectares) was granted to Compass NL for five years on 2 July, 1993. The tenement was joint ventured with Billiton Australia Gold Pty. Ltd. (later Acacia Resources Limited) on 4 August, 1993. Acacia managed the joint venture until mid-June 1997 when Compass Resources NL resumed management. A request for waiver of reduction of AN 364 was granted on 9 August 1995 for 12 months. A waiver of reduction of AN 364 was again granted on 12 July 1996 for 24 months enabling the retention of the total area until 1 July 1998. A small portion of the southeastern section of the tenement, which was on Aboriginal Freehold land, was relinquished in July 1998 when the tenement was renewed for a further two years. The tenement was renewed to July 2004 and an application for a further two year renewal submitted to the Department in March 2004. The Mt. Fitch North tenement (AN 364) is situated on the western flank of the Rum Jungle Complex in the Rum Jungle Region of the Pine Creek Geosyncline. The oval shaped complex consists predominantly of granitoid rocks. Unconformably overlying the granitoid basement is the Crater Formation (up to 600 metres thick) which forms the basal sequence of the Mt. Partridge Group and comprises two major arenaceous and rudaceous sequences. The Coomalie Dolomite conformably overlies the Crater Formation and has a reported maximum thickness of 1,000 metres. Immediately overlying the Coomalie Dolomite is the Whites Formation, a pyritic black shale sequence which frequently contains base metal sulphide mineralisation at its base. During the last field season, major planning for a holistic regional exploration was undertaken. It was proposed that a close spaced airborne electromagnetic survey be undertaken over the Company's tenements. This was based on the premise that a previously located EM anomaly at the nearby Mt. Fitch South prospect was due to that mineralisation. Subsequent drilling at this prospect in 2003 cast doubts on that interpretation; the area is deeply weathered and drilling of the northern extension of the EM anomaly failed to intersect sufficient sulphides to explain the anomaly. Modelling of ground EM anomalies (following recommendation by Richard Brescianini) indicated that helicopter borne EM surveying was not suitable as it lacked sufficient power input to locate potentially subtle anomalies. This would leave the alternative as fixed winged EM surveying, which would require much longer flight lines than the helicopter system. It was finally decided that the length of the flight lines required to complete a fixed winged EM survey was excessive, and could not be fully justified. An alternative approach of ground surveying was considered. This tenement is part of a major base metal evaluation/development/exploration programme, some costs have been assigned to this project on a pro-rata basis. It is proposed that additional drilling be undertaken at the Mt. Fitch North base metal prospect.