MCC 308 annual report Mt Samuel North period 16 September 2007 to 15 September 2008

Abstract

No work was carried out on MCC 308 during the reporting period. Since 1988, access to Mt Samuel Project, of which MCC 308 is a part, has been restricted by the registration of the Marla Marla-Kantiji sacred site. Attempts by Tribune Development to re-negotiate access to the lease with the CLC and the traditional owners have so far been unsuccessful. MCC 308 is located down slope to the north and east of the massive and in part, magnetite rich ironstone outcropping ridge line at Mt Samuel. Thickening of elongate ironstone masses occurs at Mt Samuel. Quartz veining and secondary silicification is evident in outcrop at Mt Samuel but was rarely intersected in the areas drilled. The southern side of Mt Samuel consists of ironstones sheets that dip shallowly south. Elsewhere on the hill the ironstones appear to be lenses up to 50 metres wide with near vertical dips and strike parallel to the east-west cleavage. A discontinuous line of ironstone enclosed by hematitic mudstone, siltstone and greywacke outcrops along the ridge east from Mt Samuel. North of this ridge line abundant ironstone scree occurs along the drainage systems. Exploration and mining on the Mt Samuel Lease and the broader Mt Samuel area has been carried out intermittently over 50 years with production reported to be 3,286 tonnes of gold ore at an average grade of 39.5 g/t. Numerous shafts, pits, trenches and costeans exist in and near the ironstone mass. Although no mine workings are known on MCC 308 historic data indicates that a number of drill holes were collared within the Mt Samuel North lease near the MCC 308 and MLC 599 common tenement boundaries. The drill holes appear to have targeted the strike extensions of the Mt Samuel workings. Mine workings at Mt Samuel occur at the margins of ironstone outcrops in shear or breccia zones where they contact with hematite-rich sediments. The large mass of ironstone and the high-grade gold ore won from this area suggests that supergene enrichment has occurred making the high-grade pods the primary target for miners. Exploration activities over the Mt Samuel project area occurred over three main phases. Although the majority of the work was completed on the adjoining Sheridan prospect a number of the activities covered portions of MCC 308. The key exploration activities completed in the Mt Samuel area include; 1. Australian Development Limited (ADL) completed exploration during 1967-1969 which included ground magnetics, geological mapping and diamond and percussion drilling. 2. CRA Exploration Pty Ltd completed exploration during 1984-1985 which included gravity and ground magnetometer surveys and minor drilling. Neither phase of exploration produced encouraging results warranting ADL or CRAE to continue exploration. In 1987 National Gold NL commenced the third phase of exploration with an aeromagnetic survey followed by mullock dump sampling and geological mapping. In late 1987, Adelaide Petroleum and Sabminco acquired access to the tenements and in 1988 completed an RC drill programme at Mt Samuel and elsewhere within the project. A program comprising 15 reverse circulation holes was drilled to depths of 60 metres around the Mt Samuel workings. Drill holes at the Sheridan prospect intersected significant gold mineralisation. The zone of high-grade gold occurs within hematite altered siltstone/greywackes that underlie a zone of massive specular hematite. The presence of high anomalous copper and bismuth values in drill hole SAMS9 supports the primary mineralisation model and enhances the potential for the discovery of a deeper-seated gold bearing magnetite-chlorite body such as Juno. Tribute Developments is currently engaged with several parties interested in a farm-in on the Mt Samuel Project. The interested parties are known entities with a successful track record in exploration, development and traditional owner liaison in the Tennant Creek region. Currently the interested parties are determining the likelihood of gaining access to explore within the Marla Marla-Kantaji registered sacred site.