Final and Annual Report on EL 26955 Mount McLachlan for the period 20 May 2011 to 14 May 2012

Abstract

EL 26955 was granted on 20 May 2009 to Element 92 Pty Ltd for a period of six years. It has 30 graticule blocks and was expected to expire 19 May 2015. However, due to administrative oversight, the tenement was surrendered on 14 May 2012. The project area is located within small section of the Pine Creek Shear Zone which runs north-westerly through the Palaeoproterozoic metasediments between Allamber Springs Granite, to the east, and the McMinns Bluff Granite and Tabletop Granite to the west. Eastern part of EL 26950 is covered by the Burrell Creek Formation which is the part of the Finniss River Group. The Burrell Creek Formation forms a thick sequence interbedded shale, slate, phyllite, siltstone, sandy siltstone, greywacke and rare volcanilithic conglomerate. In the Pine Creek Orogen, a variety of mineral deposits such as gold, uranium, base metals and tin are hosted by this formation. Minor outcrops of Mt Bonnie Formation are also present in SEE part of the tenement and host gold mineralisation within Enterprise Gold mine. During the reporting period, an appraisal of data available was undertaken which suggested that project area has potential for gold and base metals mineralisation. In addition 274 soil samples were taken during field program. To test the mineral potential of the project area, 10 RC holes were drilled for 1557 metres. During drilling 436 drill chip samples were retrieved and assayed for gold and base metals. Assay data have provided significant encouragement for gold and base metals potential of the project area.