MCN 20-25, 3578, 4248, Glencoe Project, Report for 1 January 2004 to 31 December 2008

Abstract

This report covers the exploration work carried on MCN's 20-25, MCN 3578 and MCN 4248 for the period of 1st January 2004 to 31st December 2008. The Glencoe Project is situated on pastoral land approximately 140 kilometres south east of Darwin in the Pine Creek Geosyncline of the Northern Territory. Access is via the Stuart Highway and the old Woolwonga haul road (sealed) that passes within metres of the Project. The deposit was a geochemical discovery made in the mid 1980s, and further exploration defined a gold mineralised vein system over a strike length of 1800 meters. During the reporting period, Australasia Gold completed the following exploration work: During 2004 and 2005, a comprehensive review of the existing project database and assimilation of understanding of the Glencoe deposit and project potential, supported by periodic site visits; Completed Resource estimate calculations (in 2006); Re-established the local grid, initially surveyed in 1987 by Geo-Spectrum; Conducted the first IP and Resistivity survey on 9 profiles for a total of 12,775 meters (in 2007); Reviewed the deposit geology and generated a new series of cross-sections, improving the previous geological model (in 2007); and Conducted a new drilling program consisted of 12 Reverse Circulation holes and 8 Diamond holes (HQ core) with RC precollars, for a total of 2155.2 meters (in 2007 and 2008). The scope of the drilling program at Glencoe was to test the extent of mineralisation beneath the existing resource estimate, including a number of exploratory holes and also for testing the IP anomalies revealed by the geophysical survey. The drilling program, achieved in two stages, in December 2007 and August-September 2008, confirmed and extended the results of previous drilling programme from the mid 1980s. The coring program at Glencoe has shown that the limits of mineralization continue to almost 200m below surface.