Annual Technical Report EL 26899 Flora-Daly Basin for the period 5 May 2013 to 4 May 2014

Abstract

During the 2013 exploration year anomalous Rare Earth Element (REE) mineralisation was identified coinciding with previously identified target areas interpreted from a recently conducted airborne magnetic-radiometric survey. The results were considered low but still anomalous and follow-up work was recommended. A nine day field reconnaissance was conducted during the current 2014 exploration year with the objective of sampling areas of coincident U2-Th anomalies with Fe altered sandstone throughout the tenement. The reconnaissance was also designed to identify and assess barite occurrences in the northwest of the tenement along strike from the old Dorisvale barite mine. Access was limited by rugged terrain to the anomalous areas in the northwest and the western side along the length of the Dorisvale Fault and adjacent terrain. The more prospective area for REEs to the south was inaccessible by 4WD vehicle. Niton readings were taken at 65 locations. Some 65 locations were visited with Niton readings taken. Rock chip samples were collected for analysis, 22 for REE analysis and 15 for barite analysis. Samples were taken generally from ferruginous sandstone ridges which commonly showed high net values Total Rare Earth (Praseodymium, Neodymium, Cerium and Lanthanum) from portable Niton XRF of 1,000 to 2,000 ppm. Results from the NAL assays for Total REEs were disappointingly low in comparison with the field readings, indicating the gross inaccuracy of the Niton XRF tool due to the high iron content of the samples. Barite rock chip samples were taken from historical trenches and outcrop over an apparent strike length of approximately 2.5 km. The barite bodies appeared to be near vertical with thickness varying from 5 metres to 15 metres. A suite of 10 samples was selected for assay at North Australian Laboratories (NAL) at Pine Creek NT. Rock chip splits for S66 and S09 returned Specific Gravity results of 4.4 and 4.19 respectively. The barite lodes appear to be hydrothermally emplaced along a major basin margin fault system, the Dorisvale Fault. Continuation of mineralisation from surface to depth is likely with outcropping interpreted as the surface expression of a significant mineralised system. Potential has been recognised for high grade barite lodes suitable for use as drilling mud additive.