Status report Barkly Project EL 10370 period ending March 2007

Abstract

This report summarises the exploration history of EL 10370 as well reporting on the activities of the last reporting year. An exploration programme comprising 2215 metres of inclined RAB drilling was carried out during 24 September to 30 September 2006 about the Bluebird prospect area within EL 10370 'Barkly'. The drilling totalling 36 RAB holes TBRB-735 to TBRB-770 followed up results of previous exploration during 2004-2005 which included gravity and ground magnetic surveys, and extensive RAB drilling comprising shallow vertical geochemical drilling and deeper angle drilling. Weak to moderate Cu/Bi/Au geochemistry was intersected in the vicinity of the Bluebird workings, in particular an assay of 1.27% Cu associated with ironstone near the base of TBRB-717. The objective of this latest programme was to investigate this result in greater detail with infill drilling about TBRB-717, followed by reconnaissance drilling of E-W striking gravity and magnetic features extending some 700 metres east of Bluebird. The area about Bluebird was mapped. Previous inclined RAB drilling had been to the south along a grid azimuth of 180 degree (magnetic azimuth 175 degree), so initial drilling of the current programme was also in this direction. The first two holes TBRB-735 and 736 sited 20m south and north of TBRB-717 respectively failed to intersect ironstone though drilled to 100m and 90m. The next hole TBRB-737, collared 20m to the east was in ironstone from surface to EOH at 73m, the hole being terminated by the drill rig having insufficient air pressure to lift heavy ironstone cuttings from this depth. These inconsistencies and the failure of subsequent holes, particularly TBRB-738, 739 and 741 to encounter ironstone suggested the ironstone bodies were in fact south-dipping. This conjecture was tested by a vertical hole TBRB-742 which collared in ironstone but passed into siltstone at 48m, confirming that the ironstone did in fact have a dipping contact. The next two holes TBRB-743 and 744 were therefore turned around to a north azimuth beneath the apex of the hill. The two holes intersected 29m and 13m of ironstone respectively, in positions that indicated a south-dipping, downwardthinning body whose surface expression was the massive specular hematite outcrop on the hilltop. With this recognition the remainder of the planned drilling was turned around to a north azimuth, with hole collar positions shifted to take this change into account. No massive ironstones were encountered in drilling to the east of the main zone though chloritic/hematitic alteration was noted in places, which probably represents the eastern strike extension of the ironstone-forming alteration though lacking its full development. No ironstone was intersected in a single hole TBRB-750 collared 20m west of TBRB-717, indicating the ironstone body pinches out in this direction. All holes were logged, selective chip samples retained, and cuttings sampled in 4m composites which were forwarded to ALS Chemex in Alice Springs. After sample prep in Alice Springs, pulps were sent to Perth for assaying for Au, Cu, Bi and Fe. The data when plotted in sections shows good correlation between high iron assays and intervals logged as ironstone in drill holes in the Bluebird area. Similarly the intervals logged with chlorite/hematite alteration correlate well with high iron assays in drill holes to the east. In preliminary interpreted configuration of the iron-rich zones is downward-thinning and south dipping. Copper assays when plotted in section appear to take the form of downward-opening haloes from about 20m vertical depth. The highest values are associated with the Bluebird area ironstone, generally on its southern hanging wall side. No results were obtained which approached the 1.27% Cu previously reported, but in this area values ranging from 200 to 2000 ppm were common. In places the anomalous copper extends beyond the ironstone, perhaps indicating parallel zones of alteration at depth. Spotty gold ranging from 0.4 g/t to 1.14 g/t occurs with high Fe-Cu-Bi association in the main ironstone zone about Bluebird. The best gold values occur at depths in excess of 50m which with the copper configuration suggests possible zonation with depth. Minor spotty gold occurs in one intersection of the chlorite/hematite alteration zone to the east. Copper assays when plotted in section appear to take the form of downward-opening haloes from about 50m vertical depth. The highest values are associated with the Bluebird area ironstone, generally on its southern hanging wall side. No results were obtained which approached the 1.27% Cu previously reported, but in this area values ranging from 200 to 2000 ppm were common. In places the anomalous copper extends beyond the ironstone, perhaps indicating parallel zones of alteration at depth. Spotty gold ranging from 0.4 g/t to 1.14 g/t occurs with high Fe-Cu-Bi association in the main ironstone zone about Bluebird. The best gold values occur at depths in excess of 50m which with the copper configuration suggests possible zonation with depth. Minor spotty gold occurs in one intersection of the chlorite/hematite alteration zone to the east. No further work is anticipated in this reporting year due to the expected onset of the wet season.