Annual exploration report for MCN 4267 Davies, for the period ending 11 May 2006

Abstract

MCN 4267 is located 15 km southeast of the Brocks Creek Mill Site and 500m north of the Golden Dyke Open Pit. A small resource of gold mineralisation outlined by RC and diamond drilling has a 60m strike length, averages 2m in width and is estimated at 49,000t @ 2.58g Au/t. The deposit is concordant and tabular, hosted by a quartz veined, sulphidised carbonaceous shale that dips steeply west. It is possible the shale has a refractory component. Structurally the deposit is linked to an arcuate system of reverse faults that link Langleys, Golden Dyke and Davies on the western limb of the Golden Dyke Dome. These reverse faults exploited an arcuate parasitic anticline that further north is termed the Good Shepherd. Fault cross-lineaments of small displacement, striking NW and NE have been interpreted as further focusing gold mineralisation. During the year the historic drillhole data was reviewed as part of a review of Golden Dyke mineralization. Work included converting AMG hole coordinates to MGA, and amalgamating into a dataset with Golden Dyke drillholes.