Annual Report for MCN 633 Hayes Creek Project for the period 31 December 2011 to 30 December 2012

Abstract

MCN 633 is located about 40 km NW of Pine Creek township and about 150 km SW of Darwin within Pine Creek 1:250 000 sheet and forms part of Element 92's Hayes Creek Project. The Project area includes some of the most prospective parts of the Pine Creek Orogen (PCO), with a number of mineral commodities such as gold, uranium, iron and base metals reported. Under an agreement with the tenement holders, Element 92 Pty Ltd (wholly owned subsidiary of Thundelarra Ltd.) secured the exploration rights in March 2010. Element 92 is exploring the area for gold, uranium and base metal mineralisation. This document reports the exploration activities on tenement for the period ending 30 December 2012. The project area is located within central part of the Pine Creek Orogen (PCO) which is a folded sequence of Palaeoproterozoic pelitic and psammitic sediments, with interlayered cherty tuff units. MCN 633 is located on the north-western side of the Golden Dyke Dome (GDD) area. The title contains part of Sandy Creek channel which is filled with unconsolidated Cenozoic clay, sand and gravel. Further downstream, in MCN 632, the gravel hosts the Sandy Creek gold mine, one of the largest alluvial gold deposits in the Northern Territory. Below the unconsolidated material, rock formations ascribed to the Palaeoproterozoic South Alligator Group (Ps) occur, which include Mount Bonnie Formation (Pso) and Gerowie Tuff (Psg). Zamu Dolerite is interlayered with this sequence. In the current reporting period, no on-ground works were undertaken by Element 92 Pty Ltd within MCN 633. The only expenditure was related to tenement administration. In the coming period, exploration will include appraisal of the immediate MCN area to determine the likelihood that auriferous bedrock materials contain economic mineralisation. This will likely comprise rock chip and soil sampling.