Annual report 2008 - 2009 EL 25436 Mavis Tin Mine South

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 approx. 1km North of Mount Wells. The track itself is about 6km long and was previously the access road for the MAVIS TIN MINE (abandoned). The Mavis appears to have been worked from the late 1950's to the late 1960's, since then the track has been largely unused. Between Mt Wells and the track turnoff are two creek crossings. Previously these were two formed up crossings which have now been washed out, and at the end of each wet season temporary by-passes are constructed. This did not happen until June this wet season (2007). The track itself crosses a further five creeks, which also need remedial work at the end of each wet season. There is also an extensive black soil plain. Access to the Lease was not possible until early June 2008, and was no longer possible following the first heavy rains Nov 2009, leaving a window of approx. 5 - 6 months to carry out work. The area is also heavily grassed and is dependent on whatever hazard-reduction burning-off is carried out by the Pastoral Company each year. The EL abuts the Southern workings of the Mavis Tin Mine. The second anniversary of the lease fell due on 28 February 2009. Spundaily applied for and was granted waiver of reduction, retaining both blocks. The access track had not been maintained from when the Mavis Tin Mine closed down in the late 1960's. Ian Genet (Union Extended Mine) was contracted to upgrade the track when sufficiently dried out; this was in June 2008. Work comprised upgrading two creek crossings on the Mt Wells road, upgrading five creek crossings on the Mavis Track, and grading the track (approximately six kilometres). An area was cleared of fire hazard for vehicle and plant parking, and an area was levelled for installing a bolt-together building for storage and camping. Further work to creek crossings and access road, was carried out by Bobcat and backhoe (Spundaily). A bolt together building was installed during July, and pit toilet, showers etc constructed. As there is no permanent water on site, a one thousand litre tank was installed, and water carted from the dam at Mt Wells. Further sampling was carried out over the two blocks. As with previous work carried out the majority came back with a nil result. The exception was the area that had produced small gold nuggets before with metal detectors by both Spundaily and previous Lessee. Spundaily Pty Ltd has applied for a mineral claim over this area (MC 26565, dated 19 Dec 2007, under negotiation). A number of small nuggets were located on the central western boundary of the MC with detectors. Samples were taken from the nearby area, results negative. At the area where most of the small nuggets had been located fifteen samples were taken at bedrock (Lateritic) level and dollied and panned off. Only two of the samples had a few specks of visible gold, and four had a tail of fine alluvial tin. However, before re-filling the test holes a detector coil was put in the hole and a few small nuggets were located at bedrock level (approx 1/2 to one metre depth). In November a one hundred metre grid sampling program was carried out over approx fifty hectares, which included all of the MC (fourty hectares) and adjacent areas of interest. These were lodged with North Australian Laboratories for assaying but were not completed in 2008 due to the heavy workload. Unfortunately the company was caught up with the financial collapse of GBS Gold, and has ceased working. I have been in touch a number of times with Ray Wooldridge (NAL) who assures me the samples have been prepared, and when work resumes my samples will be completed. Arrangements had been made to have assay results interpreted by a Geologist, and to have an onsite inspection to recommend what direction further sampling etc should take. This will now be undertaken in next year's program. Results to date have been discussed with a Mineralologist who recommends that a number of test auger holes should be taken through the lateritic layer to determine what lies within the layer and underneath it.