Annual Report EL 26926 Black Hills 2, Central Tanami Project, from 25 January 2012 to 24 January 2013

Abstract

Exploration during the second year of term consisted of surface sampling and drilling. A total of 203 surface samples were collected comprising 130 soil, 21 rock chip and 52 lag samples. All 203 samples were assayed. A program of 123 RAB holes for 6,576m was completed and 2,347 drill chip samples were collected and assayed. A total of 14 AC holes for 951m were completed and 334 drill chip samples were collected and assayed. The surface sampling returned no significantly anomalous results at the Tanami North Trend area with a maximum 1.6ppb gold soil, 5.4ppb gold lag and 5ppb gold rock chip assays where historical soil sampling recorded up to 772ppb Au. The best results were subsequently covered by a 400m by 100m RAB drilling grid. Results from the 'Proposed Airstrip Sterilisation' program indicate little possibility for economic near surface resource and the area has been sterilised for infrastructure use. The maximum gold result was 32ppb over 3m in KTRB0206. At the Tanami North Trend, 25 of the 92 RAB holes drilled recorded anomalous (greater than20ppb) gold results, however no economic gold results were intersected. The best result was within KTRB0134 with 3m at 0.479ppm Au from a depth of 36m. The most significant results appear to be associated with a stratigraphy parallel trend in the Redback Basalt unit of the Mount Charles Formation. At the Tobruk prospect the AC drilling results included significantly anomalous Au results in 5 of the 14 holes drilled and with mineralisation occurring over 500m strike extent, open to the southwest. The best result was 3m at 1.64g-t Au in TTAC0007.