Annual exploration report for EL 23540 for the period ending 16 February 2008 Saunders Creek Burnside Project NT

Abstract

Exploration Licence (EL) 23540 is located east of the Yam Creek tenement group, on the eastern side of the Burnside JV. The EL is dominated by the rocks of the Koolpin Formation along with Gerowie Tuff and intruded by dykes of the Zamu Dolerite. This sequence resembles the geological setting which contains Cosmo-style gold mineralisation. In the previous exploration, the mineral potential of the project area was assessed. It suggested that prospective geology and structural setting of the area indicate the possible presence of gold and base metals mineralisation. To test this hypothesis, a soil and rock chip sampling was undertaken in 2007. During this program, 94 soil and rock chip samples were retrieved and analysed for gold and base metal values. Assay data show some interesting results from samples collected in 2007. Gold concentration varies form 1 ppm to 1330 with an average of 20 ppm. It may be noted that most of As is below detection limit which is perhaps due to the composition of samples - it is mainly soil where As may has been leached during weathering. However, samples EX00104 and EX00137 contain significant concentrations of As because they are mainly of oxidised ironstone gossanous rocks. These rocks probably belong to Koolpin Formation and Gerowie Tuff, which host several gold deposits/prospects in the region. Base metal results have been rather disappointing where Cu values range -2 to 915 ppm with an average of 66 ppm. Similarly, Pb and Zn are also low. During 2008, data integration in DataShed will continue together with geochemical sampling and assaying program. Much attention will be focused on in-filling soil/rock chips samplings to determine the full potential of the area along with geological mapping.