Fifth Annual Report on EL 25467 Batten, McArthur River Project, from 15 August 2011 to 14 August 2012

Abstract

EL 25467 'Batten' forms part of the McArthur River Project. The tenement is situated 675 kilometres southeast of Darwin in the McArthur Basin in the Northern Territory (Figure 1). The tenement was granted on 15 August 2007 to Nicholson Iron Pty Ltd (Nicholson). Brumby Resources Limited (Brumby) entered into an option agreement in March 2007 and acquired an 80% interest in the tenement on 14 August 2010. In 2012 Nicholson's 20% share was transferred to Arnhem Resources Pty Ltd (Arnhem). Exploration in the fifth year of tenure was carried out by Brumby and focussed on base metal exploration. It consisted of compilation and review of previous open file data in the Yalco North area and diamond drill testing a VTEM anomaly in the southeastern tenement area. At Yalco North, review of historical soil sample data undertaken by MIM Exploration highlighted several exciting target areas which do not appear to have been adequately tested at depth by previous explorers. In the southeastern tenement area, BCDD001 was drilled to a depth of 279 metres and intersected pyritic shales, which were identified as the conductive layer identified by the VTEM process. These are interpreted to lie within the Barney Creek Formation. Only the core representing the pyritic shale between 203.3 and 221.4m downhole depth was analysed. Best results were 4m at 0.11% Zn from 209m and 1m at 0.13% Zn from 220m depth with no anomalous silver, lead or copper intersected in these samples.