Annual report Warrego North Project EL 23764 reporting period 26 November 2008 to 25 November 2009

Abstract

EL 23764 is situated 7 km north and 25 km northwest of the Warrego mine in the Tennant Creek goldfield, Northern Territory, and consists of 23 sub-blocks with an annual expenditure commitment of $32 800. The Warrego North project area is located in the Tennant Creek Region, which hosts major deposits of gold, copper, and bismuth in the Warramunga Province; tungsten-tin, uranium, nickel, copper, lead, and zinc occurrences in the Davenport Province; and manganese in the Tomkinson Creek Province. The region has high exploration potential and is a prime exploration target for Tennant Creek-style ironstone-hosted gold deposits. Meteoric Resources NL has explored the tenement since 2003. Previous exploration within the project area included shallow geochemical vacuum drilling by Posgold Ltd that identified numerous copper-gold and bismuth geochemical anomalies. Deeper drilling in these areas appears to be quite limited in extent; however, the reported occurrences of hematite and magnetite alteration provided encouragement for further exploration, particularly when combined with the results of Meteoric Resources' gravity and magnetic surveys on the tenement. During 2004 and 2005 Meteoric carried out a program of reverse circulation drilling, mapping and downhole geophysical surveys. The drilling tested geophysical targets in both the Eastern and Western areas of the Warrego North project, including the Parakeet, Bustard, and Cuddihy prospects. Twenty-one RC holes for 3937 m depth were drilled, and 1071 samples were analysed for Au, Cu, Bi, and Fe. In 2008 airborne magnetic and gravity data were reassessed and a program of geochemical soil and rock chip sampling was carried out to validate historical geochemistry. A total of 948 samples comprising 139 rock chip (mostly ironstone) and 809 soil samples were assayed for trace level Au and As, Bi, Ca, Cu, Fe, Sb, and U. Results were encouraging with gold values in rock chip samples (mostly ironstones) of up to 1310 ppb; most soil samples had below detection levels of gold. The rock chip samples also had elevated levels of Bi and Cu usually coincident with the elevated Au values. A radiometric survey was also carried out over tenements in the area. In August 2009 a program of geochemical soil and rock chip sampling was carried out to validate the historical geochemistry. A total of 37 soil samples were analysed for trace level Au and As, Bi, Ca, Cu, Fe, and Sb. Results were disappointing with gold below detection levels. The other elements were all disappointing as well. The expenditure on the tenement for the year ending 25 November 2009 totalled $12 951 against a covenant of $32 800 as shown in the Expenditure report. Although the results from this year's sampling program were disappointing, Meteoric has identified several areas with multiple anomalous responses but has been unable to identify the source of the anomalism. An application was lodged for renewal of the tenement and with a joint-venture agreement in place with a third party there are plans to recommence exploration on the tenement with a RAB drilling program.