Annual exploration report combined technical report for EL 22966, 22967, 22968, 22970, 23605, 24127 and 24262 for the period ending 30 May 2008 Moline Group

Abstract

The Moline Group of tenements (EL 22966, EL 22967 EL 22968, EL 22970, EL 23605, EL 24127, EL 24262) comprises 7 exploration licences and surrounds the Moline gold field. It is located about 200 km SE of Darwin along the Kakadu Highway with a distance of about 45 km from Pine Creek. The exploration tenements are situated within the central region of the Pine Creek Orogen, which is characterised by open to tight, upright N to NW-trending folds of the Palaeoproterozoic meta-sedimentary and volcanic rocks. NW-trending overturned anticlines of the Mt Bonnie Formation sediments dominate the central tenements, with some exposures of refolded Gerowie Tuff further to the northwest. Folded Burrell Creek Formation sediments are the dominant lithology further north and south on EL's 24127, 24262, 22966. During the reporting period a comprehensive program of soil sampling was undertaken in the project area in order to assess the gold potential of the area. For this purpose, a total of 3241 soil samples were assayed for Au, As and base metals. Of the 3241 samples assayed, 106 samples showed gold concentrations above 100 ppb. Sample EX04798 showed Au concentration as high as 8210 ppb, whereas 7 samples contain Au concentrations form 1 000 to 5 000 ppm. There are 9 samples with Au concentrations from 500 to 1 000 ppb. 88 samples are characterised by Au values from 100 to 500 ppb. Spatial distribution of these samples defines a NW Au anomalous trend covering 6 km by 2 km. It may be noted that this gold anomalous trend is similar to that defined in the NW parts of the Pine Creek Orogen which host significant gold deposits. A program of RC/diamond drilling has been proposed in the project area to explore the Au anomalies identified during soil sampling program. In addition, some geological mapping and infill soil sampling may also be required.