Annual report GR266 EL 10043 and EL 10167 Frances Maud Project for the period 5 September 2011 to 4 September 2012

Abstract

The project area (EL 10043 and EL 10167) is situated in the central part of the Pine Creek Orogen. These tenements are located about 200 km SE of Darwin, and approximately 40 km NE of Pine Creek in the Northern Territory. Both ELs were granted on 5 September 2002 to a syndicate of Earthrowl (80%), Douglas (10%) and White (10%). With successive reductions each EL now has only one block of area. In 2007, Thundelarra Exploration Limited secured the exploration rights with an option to purchase for both tenements from the holders. The project area is located within central part of the Pine Creek Orogen which is a folded sequence of Palaeoproterozoic pelitic and psammitic sediments with interlayered cherty tuff units. Mafic sills of the Zamu Dolerite (approximately 1.87Ga) intruded the lower sequence of the package. These rocks have been intruded by the late-orogenic Palaeoproterozoic granites, causing wide spread contact/thermal aureole metamorphism, which contains most of the gold mineralisation, uranium and base metals mineralisation in the Orogen. EL 10043 is dominated by rocks of the Masson Formation (Namoona Group) which are generally surrounded by the Mundogie Sandstone (Mt Partridge Group). Immediately east of EL 10043, Cleo group of uranium mineral deposits are located. Rocks of the Masson Formation are also predominant within EL 10167, whereas Mundogie Sandstone forms thin narrow beds east and west of the Masson Formation. It is a thick sequence of carbonaceous phyllite, slate, siltstone and dolomite. Main activity during the year under review was drilling of 4 RC holes for a total of 360 meters, along with specialised geological mapping of the project area. A total of 85 drill chip samples were assayed for gold and other base metals mineralisation. Assaying of drill chip samples returned appreciable Cu values, although gold was low. In addition, appraisal of exploration data collected in the last few years was undertaken to assess the mineral potential of the project area. Geophysical interpretation identified several magnetic and radiometric anomalies in the project area. Geological and geophysical data have identified significant potential for gold, base metals and uranium potential, which has been supported by recent drilling program. Company will keep on interpreting geological and geophysical data in order to identify exploration targets for drilling. Exploration targets will be field-tested by geochemical survey program before drilling. If encouragement received, then drilling of the exploration targets will be undertaken. Samples retrieved during drilling will be assayed for a suite of elements including gold, copper and uranium.