Exploration licence 23414 Worman Rocks near Kintore NT annual report for year four ending 26 June 2007

Abstract

Exploration Licence (EL) 23414 was granted to L Frankenfeld for a six year term commencing June 27, 2003. The EL is located in the Haasts Bluff Aboriginal Reserve approximately 450 km west of Alice Springs. In June 2006 the EL was reduced in area to 100 blocks and it retains that area for the coming twelve months. During Year one exploration was carried out by Tanami Gold NL under the terms of the Kintore Joint Venture (KJV), Tanami Gold withdrew from the KJV at the start of the second year. Since then Leaf Gold has executed a number of field studies. The region is accessed from the Kintore Aboriginal Settlement by helicopter or 4WD vehicle. Little to no work for gold and base metal exploration previous to that by Tanami Gold in Year 1 of the EL is recorded. Tanami Gold performed limited first pass geochemical reconnaissance work as described in the Year 1 Annual Report. A follow-up survey proved discouraging and Tanami withdrew from the KJV when the initial results failed to be repeatable. The holder of the EL decided that the density of sampling by the KJV partner may have been too low to provide a reliable gauge of the ELs prospectivity. As well many samples were taken outside of the region that the leaseholder believed was more prospective. During the second and third year of tenure Leaf Gold re-evaluated the existing magnetic and satellite data and performed field inspections to assess the efficacy of the interpretation. During year four Leaf Gold brought in Dr Gregory Pooley and Dr Richard Haren to assess the geological, geochemical, landsat and geophysical data with the intention to mount an expedition to sample areas where data convergence and structural geometry were apparent. The two specialist geoscientists analysed the data that Leaf Gold had assembled before and after EL 23414 was granted and using a helicopter based out of Ayers Rock went into the area and took numerous auger samples which were assayed for ppb-gold at ALS-Chemex in Brisbane. Samples were selected to determine any background level of gold anomalism within and just outside the tenement and to assess numerous geologicalstructural-magnetic target zones. The field method used was to determine a region of interest from a combination of data sets, enter the location into a GPS and then fly to that position and sample whatever was found there, either rock, surface lag or calcrete, alluvium, sand etc. In all thirty seven sample locations were assessed. In cases where only sand was evident, the sampling method involved hand-augering down to one metre or more and collecting sand particles. Calcrete was sampled at or near its base. Most samples exceeded 5kg in weight. Anomalous samples were deemed to have ppb gold values above 2.0 with 7.0 the best discovered. An assessment of the assay data and localities has provided Leaf Gold with additional information and the encouragement needed to mount another exploration campaign during Year Five of tenure.