Annual report for the period 9 June 2007 to 8 June 2008 EL 385 Walker River

Abstract

Exploration Licence (EL) 385 was applied for in 1972 by CRA Exploration Pty Limited (CRAE). Partial consent of the application area resulted in the granting of two separate licences (ELs 385 & 24304) in June 2004. The tenements are located approximately 180km south-west of Nhulunbuy, and 80km north of Numbulwar in south east Arnhem Land and consequently are processed under the Aboriginal Land Rights Act 1975 (ALRA). EL 24304 was relinquished in full on the 4 May 2006. EL 385 has undergone three relinquishments and is now 12% of the original granted area. The tenements are considered prospective for base metal mineralisation, similar to that at McArthur River (HYC) in the McArthur Basin. Subsidiary targets are diamonds. The tenements contain McArthur Group equivalent sediments adjacent to the eastern margin of the Walker Trough. McArthur Group sediments are host to the McArthur River (HYC) lead-zinc deposit located approximately 300km to the south. Exploration completed during the current reporting period included tenement access, mapping, soil sampling, stream sediment sampling, rock chip sampling and data reviews. Mapping and geochemistry have failed to indicate evidence of near surface base metal mineralisation. The ferruginous dolomites that crop out prominently within the EL are not themselves seen as a target. However, they may form part of a favourable stratigraphic sequence that may have potential at depth or along strike. Further work should include reviews of regional geology to develop models and targets for concealed McArthur River style mineralisation within EL 385.