Annual Report EL 28620 Barkly Tennant Creek Reporting period 16 December 2011 to 15 December 2012

Abstract

In 2012 a moving loop electromagnetic (EM) survey was carried out over a 1.8 km-long coincident anomalous magnetic, radiometric and gravity trend and coinciding with a 600 m-long bedrock copper anomaly (open to the east) and copper-gold RAB drill intersections at the Bluebird prospect. The EM survey was designed to identify conductors associated with highgrade Tennant Creek-style copper-gold mineralisation. In October 2012 three reverse circulation drillholes (BBRC-1, BBRC-3, BBRC-3) were completed for 392 m total depth, testing the BRK1-C1 conductor and below two previous anomalous RAB intersections on the Bluebird gravity ridge. A total of 136 samples were assayed. Drillhole BBRC-2 tested down-dip from the 8 m at 1.0 percent Cu and 0.29 grams per tonne Au intersection in previous drillhole TBRB-717 and intersected 22 m of hematite ironstone before being terminated in ironstone at 137 m because of broken ground and high water flows. Significantly, the upper part of the ironstone grades 8 m at 2.20 percent Cu and 0.26 grams per tonne Au from 112 m including 4 m at 3.70 percent Cu and 0.30 grams per tonne Au from 116 m (4 m composite samples). Follow-up sampling of 1 m intervals returned a grade of 4 m at 4.7 percent Cu and 0.38 grams per tonne Au from 115 m (0.5 percent Cu cut-off) including 1 m at 16.2 percent Cu and 1.19 grams per tonne Au from 116 m. The remainder of the ironstone intersection contains anomalous copper levels ranging from 0.17-0.29 percent Cu. The drilling confirmed the presence of a high-grade mineralised ironstone associated with the copper anomaly. The gravity ridge extends to the west but it is not currently accessible because of the exclusion zone around an aboriginal site. The copper anomalism, hematite ironstone and talc-chlorite alteration are considered to be favourable indicators of Tennant Creek style copper-gold mineralisation within this 1.6 km-long gravity ridge target. The mineralisation remains open at depth.