Annual report for EL 23639, Kiana Project, for the period 5 March 2006 to 4 March 2007

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 review and compilation of the open report data from the NTGS into MAPINFO GIS was undertaken during the 2005-2006 year. The detailed prospect mapping, geochemistry and geophysical data for the lease revealed several potential copper or zinc targets, particularly in the Wollorgorang Formation and Settlement Creek Volcanics. These targets were investigated during the 2006-2007 year in a recognizance, exploration and sampling trip conducted in conjunction with Hardrock Integrated Mining Solutions. During the reporting period an application to defer the reduction of the licence area by 50% was sought from the Department. On the 28th September 2006 the Mining Registrar of the Department of Primary Industry, Fisheries and Mines - Titles Division advised Kiana Projects Pty Ltd that it had deferred the nomination of blocks to be retained for Exploration Licence 23639 for six (6) months until the 4th of March 2007. An application was lodged with the Department on the 2nd of March 2007 seeking a waiver of the reduction of the licence area for the coming year to enable further works to be undertaken. An overview of the works undertaken during the 2006-2007 year is provided herein along with a programme of follow-up exploration planned for 2007-2008.