EL 22856 Saddles Annual report for the period 5 February 2004 to 4 February 2005

Abstract

Work undertaken for the year ending 8 February 2005 within EL 22856 comprised: a literature search of technical reports at NTGS Library; reprocessing (terrain correction) of gravity data from a survey conducted in 2003; five RAB drill holes for a total of 17 m at Saddle East and Saddle, and 13 RC drill holes for a total of 506 m at Elizabeth Marion prospect sited on ironstone outcrops and a gravity target; and resource modelling of Saddle East. Of the six known iron ore occurrences within EL 22856 reported in the literature, resource estimations by past explorers exist and are: Saddle East 140Ktonnes at 60% Fe, 0.10% P; Saddle 267Ktonnes at 57.8% Fe,). 20% P; Saddle West n/a; and Saddle Extended 230Ktonnes at 61.5% Fe, 0.25% P. No estimates are reported for the Egg Cup and McFarrars occurrences. An interpretation undertaken on 1987 to 1990 Pine Creek aeromagnetic data by Hamersley Iron in 2000 indicates that Saddle Extended and Egg Cup are hypogene in origin, Saddle is supergene and Saddle West and McFarrars are of uncertain origin. There is no noticeable difference between the discernible terrain corrected residual Bouguer gravity image and the uncorrected gravity data. This was to be expected given the lack of marked elevation differences across the survey area within the tenement. At Elizabeth Marion, an ironstone bed occurring on the westerly dipping limb of a NW-trending anticline was drilled and iron mineralisation was intersected in five holes to 18 m vertical depth. Best grading intercept was 56.0% Fe of haematite and limonite from 3-10 m drill depth in hole FCRC011. Drilling of a large gravity high was negative; and the high was explained as being caused by a density contrast between two different lithologies in the hinge area of the anticline. Results at Elizabeth Marion indicate that iron mineralisation is characterised by medium iron (mid 50s) and high phosphorous (plus 0.10%) values. LOI values are high (circa 10%) and suggest that a hydrate iron mineral (goethite) is the main iron mineral present. There is the possibility of achieving a calcined iron product from this material. An Inferred Resource of 106,000 tonnes at an average grade of 59.9% Fe was estimated from resource modelling for the Northern area of Millers prospect. This estimate is similar to that by past explorers. Reconnaissance drilling at Saddle East and Saddle Extended returned iron values to 60.9% Fe and confirms that in abroad sense grades achieved by past explorers at these deposits. Expenditure for the year was $61,049.35. Work proposed for Year 3 includes airborne magnetic survey, RAB drilling and resource modelling of iron occurrences.