Annual report on mineral tenement EL 27961

Abstract

AMI has made an effective progress in conducting geological survey, data collections and research, and geochemical exploration in second year. These progresses have prepared AMI for significant geological exploration work in the forthcoming years. The major progresses made in the second year included; Completed desk-top studies on the EL 27961 tenement area, including open files, GIS, amass databases, and gained better knowledge of the geological settings and mineralisation of the licensed area and potential deposits of minerals; Data search and analysis, literature research, interpretation of existing data and reports; Conducted fieldwork including site visits and sample collections. Carried reconnaissance and prospecting on the tenement field by a team, and performed rock and soil sampling (23 bags of rocks and 6 bags of soil samples), and geochemical assays of the samples by Australian Laboratory Services (ALS); Building up strategic partnership and joint work projects with Australian and Asian companies, both in geological exploration and investment programs. This is expected to be a main driving force for AMI Resources? growth in the next 3-5 years and also a key for successful completion of exploration programs. Assays confirm the presence of gold mineralisation in quartz veining at the Davidsons gold occurrence. Gold grades recovered are not high (up to 2.21 ppm and 1.58 ppm Au) but this is from material left behind by the historic miners and it is probable that they recovered richer gold ore. Given the extent of surface cover here, there may be significant potential for further gold mineralisation. The suggestion of uranium anomalism in sample KDRK23 (30 ppm U), about 3 km northeast of Davidsons, is also significant. This area is at a similar stratigraphic position to the Munadgee uranium occurrence (historic mine) about 27 km along strike to the northwest. The intervening area (the 27 km) is all under surficial cover, as is most of the area further along strike to the east-southeast. About 20 km of this strike trend runs WNW-ESE through AMI's licence. Munadgee was reportedly the most significant vein-type uranium occurrence in igneous rocks in the Tennant Creek region. Secondary uranium mineralisation occurs in sheared and altered feldspar porphyry (?Palaeoproterozoic) which is inferred to intrude into the Warramunga Group. The prospect is near the unconformity at the base of the overlying sediments of the Hatches Creek Group. Average grade in the 1950s was quoted as 0.75% U308 and a 5.8m wide ore zone averaging 0.45% U308 was reportedly defined at the bottom of the shaft; sampling in a crosscut 40m deep assayed 0.82% U308 over 1.2m, according to government reporting. Within a few kilometres of Davidsons Gold occurrence and the anomalous uranium site (KDRK23), the published 1:250,000 geology ('Bonney Well' map sheet) shows a small outcrop of 'granophyre' which may be comparable with the porphyry which hosts the Munadgee deposit. Given the extent of surficial cover here - and over many kilometres along strike both towards and away from the Munadgee deposit - this area warrants further investigation of its uranium potential.