Annual report 2009 to 2010 EL 25436 Mavis Tin Mine

Abstract

EL 25436 comprises two Blocks (6.68 sq kms) North West of Mount Wells on Ban Ban Springs Station. Access is via an un-maintained track beginning approximately 1km north of Mount Wells. The track itself is about six km and was previously the access road to the Mavis Tin Mine (abandoned) Spundaily has undertaken considerable remedial work on the track during the three years of the Lease. There are five creek crossings and each wet season these need considerable repair work. There is also a black soil plain. Each wet season the track is impassable between about November and June, leaving a window of approximately 5-6 months to carry out work. The area is also heavily grassed and exploration work is dependant to some extent on whatever hazard reduction burning is carried out by the Pastoral Company each year. Gold was previously known in the vicinity due to alluvial workings in the NE of the lease, which recovered alluvial tin and fine gold, however this was believed to originate at, and flow from the Mavis Tin Mine. Coarse gold was first discovered in an area just to the south of the tin mine with metal detectors in 2005. Since then a considerable amount of gold has been recovered with detectors, panning and sluicing. Through exploration work Spundaily has confirmed the site as a previously unrecorded gold deposit. In consultation with a geologist Spundaily carried out a one hundred metre grid sampling programme over the most highly prospective area. Assay results and Geologists report are included with this report. Spundaily applied for and was granted a waiver of reduction, retaining both blocks. Spundaily is currently negotiating with Island Minerals Pty Ltd (IsMins) with a view to joint exploration. IsMins has acquired the rights to EL 25399 which adjoins the northern boundary of EL 25436. They are proposing to float a public company this year. If they take up the option over EL 25436 IsMins would undertake hard rock exploration over the lease, spending a minimum of $50,000 the first year. Spundaily would retain the rights to alluvial minerals (unless a decision to mine is made).