Annual report for MCN 4902, MCN 4903, MCN 4904, MCN 4905, MCN 4907, MCN 5193, MCN 5194, MCN 5195, MCN 5196, MCN 5197, MCN 5198, MCN 5199 and MCN 5200 Priscilla Line Group for the year ending 7 August 2011

Abstract

The Priscilla Line of tenements is located about 185 km south of Darwin and is being explored by Thundelarra Exploration Limited/Element 92 Pty Ltd for gold, uranium and base metal mineralisation. The Priscilla Line tenements were granted between 3/8/1995 and 31/7/2008 to Robert Michael Biddlecombe and Buffalo Creek Mines Pty Ltd and Territory Goldfields Pty Ltd. Buffalo Creek Mines Pty Ltd and Territory Goldfields Pty Ltd hold a 20% in the MCN's, and these companies were purchased by Crocodile Gold Australia in 2009. On 23 December 2008, Element 92 Pty Ltd assumed the rights and obligations of an option agreement to purchase the 80% interest in these tenements held by R.M Biddlecombe. The project area is located within central part of the Pine Creek Orogen (PCO). The MCN's lie over an area of tightly folded meta-sedimentary rocks assigned to the Mt Bonnie Formation and Gerowie Tuff of the South Alligator Group and the Burrell Creek Formation of the Finniss River Group. The MCN's covers the northern extent (the north plunging Yam Creek Anticline) of a doubly plunging antiform known as the Golden Dyke Dome. The major regional Hayes Creek Fault cuts the antiform at a NNE angle in the southern MCN's. Uranium mineralisation may be associated with splays off the Hayes Creek Fault. Eluvial-alluvial gold is being mined from a number of small shallow channels draining low ridges, containing primary reef gold mineralisation. During the year under review, Thundelarra conducted detail geological and structural mapping program by consultant geologists to understand geomorphological, geological and structural setting of gold, uranium and base metals mineralisation in the area. This involved incorporation of remote sensing imagery, high resolution geophysical data, photo-geological interpretation and mapping of the structural setting of the project area. During the period, detailed geological mapping program was also undertaken by a consultant geologist, especially targeting the Priscilla Line of tenements for gold mineralisation. The main aim was to assess the gold potential of the tenements. This mapping program identified several gold-perspective areas which were recommended for drill-testing. In the next reporting period, an oriented geochemical sampling will be undertaken and high priority areas will be drill-tested. Samples retrieved during geochemical sampling and drilling programs will be assayed for gold, uranium, base-metals and suites of path finder elements.