Final report EL 23605 Moline Project for year ending 30 April 2011

Abstract

EL 23605 is located about 200 km SE of Darwin along the Kakadu Highway with a distance of about 45 km from Pine Creek. This EL makes up one of 7 exploration licences (EL 22966, EL 22967 EL 22968, EL 22970, EL 23605, EL 24127, EL 24262) covering the Moline goldfield. Terra Gold Mining Pty Ltd, a wholly owned subsidiary of GBS Gold Australia acquired exploration rights from tenement owner (Mike Teelow) in 2004. Crocodile Gold acquired the Moline group of tenements in 2009 after GBS Gold Australia (liquidated) when into voluntary administration. The tenement expired on 30 April 2011 and an application for SEL 28616 was applied for on 11 February 2011 to cover the area over the Moline Project (EL 22966, EL 22967, EL 22968, EL 22970, EL 23605, EL 24127 and EL 24262). EL 23605 is situated within the central region of the Pine Creek Orogen, which is characterised by open to tight, upright N to NW-trending folds of the Palaeoproterozoic meta-sedimentary and volcanic rocks. The tenement area is made up of greywacke, siltstone and carbonaceous phyllites of the Mt Bonnie Formation and massive greywacke of the folded Burrell Creek Formation. The Burrell Creek Formation is typically a cyclic greywacke-dominated assemblage with minor dark siltstone and mudstone packages. Over the Moline Project, gold mineralisation occurs within greywacke, siltstone and carbonaceous phyllite of the Mt Bonnie Formation. It is also confined to meta-greywacke and slate of the Burrell Creek Formation. From 2004 to the licence expiry in April 2011, exploration activities on EL 23605 have included field mapping and reconnaissance, desktop studies, diamond drilling (321m) and 2554 geochemical samples collected and analysed. This sampling program aimed at infilling previous soil sampling and to further identify mineralisation along strike from the Moline Dam and Hercules gold deposits. Results revealed a NW trending Au anomalous trend covering a 6km by 2km zone. Rocks within the anomalous zone are from the Burrell Creek and Mt Bonnie Formations which are folded along a NW trending axis, and cut by shear zones. Further north, the Moline group of gold deposits are confined to shear zones within a similar NW trending anticlinal structure. It appears that the anomalous zone is the continuation of mineralised structures at Moline. A review of satellite imagery was also conducted with new satellite images purchased.