Annual report on EL 22206 AuQuest Project for the period ending 21 October 2009

Abstract

EL 22206 is situated about 90 km south-east of Darwin in the vicinity of the Toms Gully gold mine. The tenement was granted on 22 October 2003 to Renison Consolidated Mines Limited and expires on 21 October 2011. It comprises 2 graticular blocks that comprises 6.5 km2. On 25 July 2007, GBS Gold Australia Pty Ltd acquired all tenements and Toms Gully gold mine held by Renison Consolidated Mines NL, including EL 22206. GBS Gold Australia went into voluntary administration on 15 September 2008 and in November 2009, Crocodile Gold Australia purchased all assets held by GBS Gold Australia (liquidated). EL 22206 is located within the Pine Creek Orogen, which has been interpreted as an intracratonic basin lying on an Archaean basement, and containing a 14 km thick sequence of Palaeoproterozoic sediments, accompanied by lesser volcanics, granite plutons and dolerite intrusions. The sequence was deformed and metamorphosed during the Top End Orogeny (approx 1870 - 1780 Ma. Cullen Batholith and satellite plutons intruded the Palaeoproterozoic meta-sedimentary sequence dated at 1850 - 1780 Ma). During the reporting period, high resolution airborne magnetic and radiometric cover of the area was obtained. Processing and interpretation of the geophysical data have identified magnetic and radiometric anomalies which could contain gold and uranium mineralisation. This view is supported by the geological setting of the project area which is located in the northern part of the Pine Creek Orogen, known for gold and uranium mineralisation. In 2008-09, high resolution airborne TEMPEST survey was undertaken over the tenement area. Initial inspection of the conductivity depth images (CDI's) indicates that the TEMPEST system maps the graphitic black siltstone unit very well. No TEMPEST anomalies have yet been drilled on the tenement. Other activities were technical review, tenement ranking and valuation in order to prepare all exploration and mining tenements for sale. A number of field visits were undertaken with the interested parties. In the next reporting year, selective parts of the project area will be mapped in detail and targets will be selected with the help of geophysical surveys conducted so far. Soil/rock chip sampling of the areas of interest will be undertaken, and if encouraging results received, it will lead to RC drilling.