Annual technical report 2004-2005 for EL 23639 Kiana Project for the period 5 March 2004 to 4 March 2005

Abstract

EL 23639 (Kiana Project), which covers an area of about 529 km2 on the Wallhallow 1:250,000 sheet in the southern section of the McArthur River Basin, is regarded as being prospective for diamond and base-metal mineralisation. Diamond indicator minerals (chromite and micro-diamonds) are reported from drainages in Palaeoproterozoic folded and lightly metamorphosed rocks in the west of the tenement and less deformed Cambrian rocks overlying a Palaeoproterozoic basement in the east. In addition, four copper occurrences in Palaeoproterozoic rocks adjacent to major faults structures in the western section of EL 23639 indicate potential for replacement-style base-metal mineralisation. A review of the regional geomorphogical and geophysical data-sets that cover the tenement, including digital terrain, magnetics, radiometrics, gravity, ASTER and LANDSAT, each show that the tenement is transected by major NNE to NE and NW trending structures that could act as conduits to mineralising solutions. These features delineate different geological terrains within the project area and allow field programmes to identify favourable zones with the potential to host mineralisation. A programme of follow-up exploration is planned for 2005-2006 as outlined herein.