Annual Report on EL 25789 from 9 July 2012 to 8 July 2013

Abstract

EL 25789 was granted to Legend International Investments Pty Ltd on 9 July 2008 for a period of six years, and will expire on 8 July 2014. EL 25789 is located about 1027 km south of Darwin and approximately 27 km south of Tennant Creek. It now has 23 sub blocks (~ 64.5 km2) on the Tennant Creek (1:250 000) sheet. The project area is located within Palaeoproterozoic Tennant Creek Inlier which comprises the Ashburton province to the north and Davenport province to the south. Much of the tenement area is covered by thick sand sheets, relict fluvial system, often covered by sand and uncommon colluvium and scree deposits. Interpreted geology of the project areas shows that it mainly contains rocks of Junalki Formation, Orradidgee Group and undifferentiated granite, which are all buried below surficial cover which may be 10's of meters thick. During the reporting period, an appraisal of data collected during previous exploration programs was undertaken. Geochemical sampling program, undertaken during the previous reporting period returned some significant REEs and Zr concentrations from the overlying sandy cover. Interpretation of high resolution geophysical survey has also shown some significant anomalies in the north-eastern part of the project area. Due to surficial cover, it is important that suitable drilling techniques are utilised to intersect bed rock geology. A number of field visits were undertaken in order to assess the mineral potential of the project area. Appraisal of geological, geochemical and geophysical data indicated mineral potential of EL 25789. Elevated levels of REEs and Zr may indicate presence of the REE mineralisation in the project area as has been found further south in shallow alluvial cover. Magnetically anomalous area in the north-eastern part of project area is also significant for the presence of gold and copper mineralisation, and should be tested by air core/RC drilling program, which should penetrate deep into bed rock geology. Samples retrieved during drilling will be petrographically examined, and assayed for gold and base metals mineralisation.