Third annual report on McArthur River Project EL 24814

Abstract

In 2007, Resource Potentials were engaged by Genesis Resources Pty Ltd (GNR) to primarily carry out compilation, processing and targeting of government open file airborne electromagnetic data and secondly review available gravity data for manganese and base metal mineralisation over tenement EL 24814. Resource Potential Pty Ltd undertook a reinterpretation of the historical EM data flown by BHP in 1995. The geophysical surveys completed by these previous explorers included Induced Polarisation (IP) over the Thor prospect by Carpentaria Exploration Company Pty Ld in 1980, and an Airborne Electromagnetic (AEM) survey, over the entire tenement area and surrounds by BHP Minerals Ltd in 1991. It is believed that these surveys were primarily aimed at targeting base metal Cu/Pb/Zn mineralisation and the AEM in particular, may not have been thoroughly reviewed for near surface manganese mineralisation potential. Thirteen target areas of interest, some of which contain multiple electromagnetic anomalies that may represent massive manganese mineralisation have been selected. Of these 4 areas are considered high priority for ground reconnaissance. It is recommended that the target areas be followed up initially with ground reconnaissance and rock chip sampling, to determine if the sources of the AEM anomalies are surficial. If no surficial explanation is found, then follow up with select ground IP traverses are recommended. A brief reconnaissance consisting of 17 rock chip sampling program was conducted over the Masterton No.2 prospect and the surrounding areas in October 2008. High grade manganese assay results were obtained.