Annual Report for ML's and MCN's covering the period for the year ended 31 December 2012

Abstract

The Fountain Head Alluvial mine was in operation until the road access was cut off by the construction of the Alice Springs to Darwin Railway line. This situation effectively cut the operation in two, separating the treatment plant from the bulk of the ore reserves located on the south side of the railway line as well as removing the road access to the Grove Hill Rd. The alternative access was via the Ban Ban Springs road through a neighbouring group of tenements which only provided a Dry Season access route. In addition, the only available route of travel was through the actual mine workings which was not suited to light vehicular traffic. As a result, it became uneconomic to cart ore (of 0.4 grams per tonne. Au approximately) via the Ban Ban Springs Rd., a distance of approximately 10Km. to the treatment plant. Further the lack of road access made it impossible to retain a caretaker on site with the result that there has been significant theft and vandalism on site. It is estimated that there is approx. 300,000 cubic metres of ore remaining with a grade in the order of 0.4 grams per tonne Au.