Annual Technical Report EL 26899 Flora-Daly Basin for the period 5 May 2012 to 4 May 2013

Abstract

In September 2012 the Flora River NT Airborne Geophysical Survey was flown over EL 26899 which is held by Century Hill Pty Ltd., a subsidiary company of Consolidated Global Investment Limited (CGI). It was an airborne magnetic/radiometric survey which was flown at 200m line spacing over 1,835 line kilometres. This survey was conducted in collaboration with the Northern Territory Government. The survey has provided high quality data which has enabled detailed identification of geological structure. Radiometric data has been interpreted and elevated values of U2-Th have been identified. These anomalies are proposed to be indicators of potential Heavy Rare Earth Elements mineralisation based on similar anomalies to the north documented by TUC Resources Limited. International Geoscience identified thirty-one U2-Th anomalies on EL 26899. Prominent faulting has been interpreted from magnetic data. The U2-Th anomalies within the Dorisvale Fault Zone are considered more prospective due to the added structural complexity of the area and the shallower basement source. The faults and anomalies evident in the eastern tenement area are also considered prospective as they too are large scale features that can act as fluid conduits. A three day helicopter reconnaissance field trip was made to follow-up some of the readily accessible anomalies identified by International Geoscience (Intergeo) which resulted from interpretation of the airborne magnetic-radiometric survey. In total 95 rock samples and 67 soil samples were collected in the three day visit at some of the readily accessible sites. A preliminary assessment of the rock samples was made by analysis using a hand held Niton XRF analyser. The presence of elevated scandium and uranium were used as a proxy for REE mineralisation. Subsequently 57 rock samples were chosen to be analysed by ICP-MS. Although the values of TREO returned from assay are not considered high (16-447ppm), they are anomalous with respect to background. Comparison between TUC's results and the results of this initial short reconnaissance field investigation suggests the EL may be host REO mineralisation similar to TUC. The anomalous rock samples (>200ppm TREO) are associated with a medium to coarse grained poorly sorted sandstone with rounded grains and possibly fluvial or shallow marine origin. Iron has invaded the pore space of the sandstone and now is present as haematite but may have originated from sulphides at depth. A preliminary interpretation is that the iron alteration within the sandstone is representing a redox change and a possible roll-front zone. It should be noted that the size of each U2-Th anomaly is not in itself necessarily important as each anomaly should be viewed as a 'window' into the subsurface. The combination of favorable lithologies, faulting, coincident U2-Th anomalies and proximity to known REE mineralisation makes the entire area of EL 26899 prospective for REE mineralisation. It is recommended that all areas of coincident U2-Th anomaly with Fe altered sandstone throughout the entire tenement be sampled and mapped. Several Barite-Lead-Silver-Zinc mineral occurrences lie within and adjacent to CGI's tenement (EL 26899). A select few of these occurrences were visited and the presence of Barite was confirmed. Barite appears to be a secondary deposit emplaced along faults. The Pb and Zn anomalies associated with barite suggest there may be possibility of base metal mineralisation at depth. Extensions of the barite along strike of the Dorisvale Fault Zone within EL 26899 can be expected.