Annual Report on GR198-11 EL 10120 and EL 23509 for the period ending on 26 February 2012

Abstract

Exploration Licenses (EL) 10120 and 23509 are located about 180 SE of Darwin and approximately 40 km NE of Pine Creek in the central part of the Pine Creek Orogen. EL 10120 was granted on 14 August 2002 to Biddlecombe Pty Ltd for a period of six years, and it was renewed for a further period of 2 years on 20 October 2008. Element 92 Pty Ltd purchased the tenement from the owner under an agreement in 2010 and is expected to expire on 14 August 2012. EL 23509 was granted on 27 February 2003 to Biddlecombe Pty Ltd for a period of six years, and was acquired by Element 92 Pty Ltd in 2010. It is expected to expire on 30 November 2013. 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 (~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. ELs 10120 and 23509 lie over an area of tightly folded meta-sedimentary rocks assigned to the Mt Bonnie Formation, Gerowie Tuff of the South Alligator Group and the Burrell Creek Formation of the Finniss River Group. The tenements cover 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 part of the EL 10120. During the year under review, an appraisal of geological and geophysical data was undertaken. A number of field visits were undertaken for ground-truthing. This exercise helped to identify several exploration targets for gold and uranium mineralisation, which were drill-tested. A total of 31 RC holes were drilled in the project area for a total of 3664 metres. 1154 drill chip samples were retrieved and assayed for gold and base metals and uranium. Within EL 10120, drilling returned significant intercepts of gold mineralisation which assayed up to 908 g/t. Geological and geophysical data interpretation has highlighted mineral potential of the project area. It is expected that drilling campaign will continue to discover additional areas of gold and uranium mineralisation. Samples retrieved during drilling will be assayed for gold, base metals and uranium mineralisation.