Geophysics and drilling collaborations final report, Deep diamond drilling proposal for Homestead Project EL 25192

Abstract

ABM Resources drilled a single diamond hole at the Homestead target in the South Tanami Project with the objective of testing an ionic leach geochemical anomaly interpreted to be a result of mineralisation below the Antrim Plateau Volcanics overlaying the wider South Tanami Project. Soil sampling completed by ABM in 2012 comprised collection of material for ionic leach analysis. Sampling over the Homestead area was completed on a 500m x 500m grid spacing, and results for this area were amongst the highest returned for the 2012 field season. The Homestead target area had not been previously tested with surface geochemistry or drilling, and NTGS mapping for the area indicated the area is covered with transported materials. Nearby outcrop comprises Antrim Plateau Volcanics, and magnetic data supported the presence of flat lying magnetic material in the area. The presence of a 1.6 km x 1.3 km multipoint geochemical anomaly, of a relatively high tenor, was puzzling and an application was submitted for a co-funded diamond drill hole. The drill hole was aimed at resolving the depth of cover, and the presence and depth of Antrim Plateau Volcanics. It was anticipated that the volcanics could be relatively thin; thin enough to permit the upward passage of mobile metals leading to the presence of ionic-leach detectable-gold from Lower Proterozoic stratigraphy; either Dead Bullock Formation or Mt Charles Formation, below the Antrim Plateau Volcanics. At the base of the Muriel Range siltstones and sandstones a 6.8 m polymictic conglomerate unit was intersected. Clasts within the polymictic conglomerate included granite and sediments. Multi-element and pXRF geochemistry of the sediments suggest that the sediments have the closest chemical affinity with the Mt Charles formation, and indicate more prospective host rock in the vicinity, albeit at depths greater than 219m. The 6.8m of disseminated and blebby pyrite within the conglomerate and overlying mudstones at the base of the Muriel Range sediments does not satisfactorily explain the ionic leach anomaly generated by ABM's in house Deep Penetrating Geochemistry ('DPG') technique. The DPG methodology does not generate a discrete geochemical response for direct deeper drilling follow up work, and is rather likely more dispersed. The revised interpreted geological section and results from historic drilling in the wider project area indicate the potential for prospective stratigraphy to exist under the Antrim Plateau Volcanics and Muriel Range sediments. Without a geochemical technique to effectively predict under cover mineralisation, further exploration will require better mapping and geophysics to determine the likely thickness of these units to prioritise more cost effective exploration in areas of lesser cover sequence.