EL 26951 Steve's Hill Annual report year one 27 August 2010

Abstract

Prospector Steve Lewis made the first significant discovery of gold in the area while detecting in an old gravel pit in a residential subdivision in 1999. Steve and other prospectors detected over 500 ozs of gold nuggets on what we have named 'Steve's Hill'. Au/Qtz specimens up to one Kg in weight were found. Many smaller water worn nuggets were also detected. The area (EL 22068) was then applied for and granted to Steve and John Lewis and Ernie Chin. I was asked to do their initial EL report. John Lewis and I then sampled, milled and panned about a dozen large samples from various quartz reefs along the ridge where the nuggets were found. None of the reefs showed any gold. Because of the water worn nature of the gold and the significant nearby creek, I believed that the gold was alluvial in nature and had come from further upstream. John and I then took an alluvial sample from the creek about two hundred metres upstream from Steve's Hill. This sample showed several specks of gold. The EL holders then made a JV agreement with Renison Consolidated Mines. Despite our advice, Renison decided to carry out extensive drilling on Steve's Hill. No significant gold intersections were made. Renison also drilled a small reef at 'John's Flat' about one Km SW of Steve's Hill, where John Lewis had found several small nuggets. Renison got several significant gold results on 'John's Reef'. Coarse and fine visible gold can be found in some of the iron rich ore near the centre of the reef. During Renison's exploration John Lewis and Ernie Chin found several ounces of coarse gold/qtz specimens in a gully while detecting. We call the area 'Chin's Gully'. It is about 2.4 km SW of Steve's Hill. During this years exploration I panned one 15kg sample (No 854) of -6mm gravel from the bottom of the erosion further upstream in the gully. It showed over 50 specks of fine to coarse gold. In the late 1980's Carpentaria Gold (MIM) got significant stream sediment results (7ppb Au) in this gully as well as the two drainage areas to the north. Another alluvial sample (No 867) that we took from a drainage area about 1.75 km to the NE of Chin's Gully showed one speck of gold. We now have good reasons to believe that the source of the gold is in the general area of the magnetic dislocation, on the higher ground near the NW corner of the SE EL block. All of the prospective creeks drain this area. A recent alluvial sample (No 877) taken from surface gravel there and panned by the author, showed one small speck of gold. Our exploration for year two will commence in this area.