Annual report for McKeddies EL 23506 for the year ending 7 May 2010

Abstract

During the current reporting period a desk top GIS review and data compilation commenced using information from open file reports to identify gold and base metal exploration targets for the 2010 field season. EL 23506 (McKeddies) is located approximately 200km SE of Darwin, and 40km NE of Pine Creek. The area is considered prospective for uranium, gold and iron ore mineralisation. MODAT occurrences within the tenement include some iron ore occurrences (Frances Creek East) in the far south-east corner of the licence, and the Glenys Sn diggings, which comprise alluvial and quartz-cassiterite stringers in the Mundogie Sandstone. The McKeddies alluvial gold occurrence is within one of the excised tenement areas. The tenement has undergone almost continuous exploration and during the 1980's, the Woodcutters Group (Nicron Resources) found stratigraphic, lithofacies and geochemical similarities to Rum Jungle along the granite margin on the eastern side of EL 23506 (Orridge 2004). Radiometric anomalies were noted by Total Mining Australia during exploration of EL 4414. The anomalies are within the belt of carbonaceous shale and carbonates on the granite contact which correlate with the Rum Jungle sequence. However drilling only found narrow zones of uranium mineralisation. Orridge (2004) reported that gold exploration within EL 23506 has been essentially of a reconnaissance nature and may not be conclusive given the extensive soil cover and poor exposure in the central Masson Formation belt. Iron ore mineralisation was found by mapping, costeaning and percussion drilling at Frances Creek East and an estimate of a possible 1.5Mt of 'low grade ore' may be present. The exploration program for the 2010 field season will include an infill airborne geophysics survey, rock chip and soil sampling programs with additional diamond and RC drilling planned dependant on results. See also CR2010-0254