Year 3 Annual Report Lucy Creek EL 27844 11 August 2012 to 10 August 2013

Abstract

NRE has carried out a detailed geological assessment of its Lucy Creek Project, during the third term of grant. NRE's exploration activities during this third term included considerable research prior to the commencement of depth to target modelling over the area. Research included review and compilation of the data in the Northern Territory Geological Services (NTGS) open file reports, air photo imagery and examination of the latest geological maps. NRE then conducted depth modelling of target based on previous historical data including data from a drill hole within the tenement, previous gravity and magnetic data together with sample results from those samples previously collected in an earlier term by NRE. NRE believes it has successfully modelled the target based on geophysics. NRE also engaged consultants to continue conducting geophysical reprocessing of imagery. This allowed for the modelling and better understanding of the structure of the large scale co-incident magnetic and gravity feature. Surface outcrop indicates that the large scale co-incident magnetic and gravity feature is buried under Cambrian sequence and is blind. Colour anomalies in ASTER imagery has highlighted surface ironstone lag. The prominent band of ironstone lag is associated with Cambrian limestone and sandstone and has returned elevated Cu, Mn, Ni and Zn results. The magnetic and gravity anomaly currently covers a majority of the tenure. Modelling however suggests that the target is deep. NRE is looking forward to investigating this further in the fourth term of the licence in an attempt to confirm depth to target as a result of conducting a large geophysical survey.