Third annual report on Arltunga Goldfields Project EL 25238

Abstract

The Altrunga gold project area is located some 110 km north east of Alice Springs in close proximity to the Alice to Adelaide Railway. After 70 km of sealed road along the Ross Highway, there is a formed gravel road which leads northeast for 33 km to the Arltunga Historical Reserve. Resource Potentials was commissioned by Genesis Resources Ltd (Genesis) to perform a review of the available government and open file geophysical and geological datasets over the Arltunga Project, located in the Northern Territory. The aim of the review was to provide target areas and recommendations for future work programs. The key points are listed below: Review of open file data indicates numerous historical high grade small tonnage gold mines; High grade gold mineralisation strongly associated with pyrite, which can be targeted by electrical geophysical methods; Historic reports from the Wheal Fortune Mine indicate 'almost massive sulphidequartz ore assaying 132 g/t Au at depth'; Shear zones and local magnetite concentrations associated with mineralisation may be better defined through high resolution ground magnetic surveys; Numerous untested geochemical assays over 1g/t Au; Previous explorers suggest that gold bearing shears and quartz veins are limited in strike extent and width, but are untested at depth; Only limited scout drilling exists within project area testing depth extent. During the course of 2009, a rock chip work programme (8 samples were taken) was completed for the purpose of examine the old mine workings/ prospects, evaluate the mineralisation, collect a samples and produce reconnaissance geological maps of the area. The fieldwork in the Arltunga project involved visiting the Wheal Fortune, Magdala, Star Creek, Wheal Mundi and Wipe Out mining areas. Wheal Fortune was accessible by track to within 200m of the mine site and tracks ran close to Star Creek and Wipe Out. The other prospects required fairly long foot traverses. Samples were taken at each of the prospects and geological measurements and notes collected.