Annual technical report EL 31024, 31 May 2016 to 30 May 2017

Abstract

During the first year of the licence a review of geological, geochemical and geophysical data was conducted. It involved retrieval of exploration data from open file reports. Previous geological and geophysical data interpretation indicated that almost all of the project area is underlain by the Palaeoproterozoic Burrell Creek Formation. It contains tightly folded sediments about axes, which swings from near N-S trends in the south, to NW-trending axes in the northwest. Plunges are to the north or northwest, mainly at low angles. Towards the NE, a cluster of gold deposits/prospects (Rustler Roost area containing Dolly Pot, Backhoe, Beef Bucket) are found, where Rustler Roost has produced 46,300 ounces of gold and still has a significant resource of 18.5 Mt at1.14 g/t. Here gold mineralisation occurs in the Mt Bonnie Formation/Burrell Creek Formation. It is located at the closure of a regional scale south plunging anticline. Other good examples of gold mineralisation such as Toms Gully and Quest 29 are located towards NE/ENE, which have produced significant quantities of gold in the last 30 years. The small, rich Bandicoot and William deposits are within the western most graticular block of EL 31024. A review of historical exploration data also shows that significant exploration (geochemical sampling, drilling) has been undertaken around the project area. However, within the tenement area very little on-ground exploration has been conducted to date. Much of the project area is covered by a thick Quaternary cover, which hampers access to bed rock geology. The target commodity sought in the area covered by EL 31024 is gold and given that the nearby Bandicoot and William gold deposits contain relatively rich coarse gold in 'en echelon' quartz reef systems we are hopeful of discovering further relatively small rich deposits. The first year's exploration efforts were concentrated on the three northern graticular blocks. The area was traversed extensively by buggy and on foot and several areas of quartz scree and minor quartz outcrops were inspected and intensively detected. Disappointingly all of the areas of quartz scree and outcrops encountered were relatively barren with very little or no signs of mineralisation. We intend to conduct similar first pass exploration activities over the remaining four southern graticular blocks during the current field system and we will also check the drainage system running to the SW through the middle of the tenement for any sedimentary traps suitable for stream sediment sampling. It is likely that if the second year's exploration is as disappointing that we will surrender EL 31024.