Final report on A 24268 including exploration activity for the period 23 April 2007 to 30 January 2009

Abstract

Work undertaken within A 24268 targeted two commodities; alluvial and hardrock gold by Woodleigh Nominees (the tenement holder) and iron by Territory Resources under a joint venture agreement. The original plan to drill between MLN 770 and MCN 1646 to confirm the continuation at depth of the orebody connecting these tenements was postponed indefinitely due to the lack of available drilling equipment and geologists at the time. The target was shifted to the alluvial potential of the area. This decision was made as it has been found in the past that the removal of alluvial material from the surface provides a clearer vision for future hard rock exploration. In addition, it provides an income stream to fund further exploration work in the area. Work undertaken by Territory Resources comprised geological reconnaissance traversing the prospective Wildman Siltstones located along the southeast trending strike length of the ironstone outcrops of the Ochre Hill deposit in EL 9999 and the Saddle Extended deposits in EL 22856. This traverse included areas within the adjoining A 24268. The exploration of A 24268 demonstrated that a minable alluvial gold resource existed on the valley floor to the east and south of the Francis Creek Gold mine site. There is also to a lesser extent a resource in the scree material shedding from the adjoining foothills which are in the main part of the Francis Creek Gold mine group of tenements. Potential exists elsewhere on A 24268. The plan to repair the Fountain Head Alluvials treatment plant and transport bulk samples of approximately 100 cubic metres to the mine site for treatment was abandoned due to the difficult nature of access to the site due to the redevelopment of the GBS Gold Fountain Head mine. Currently this is the only access route into the Fountain Head Alluvials site and it has been blocked by the placement of a large mound of dirt/rock across the roadway. Crocodile Gold has been requested to remove this obstacle or allow Woodleigh to remove it but to date no response has been forthcoming.