Second Annual Report for period ending 8 June 2006 EL 24304 and EL 385 Walker River

Abstract

EL 385 was applied for in 1972 by CRA Exploration Pty Limited (CRAE). Partial consent of the application area resulted in the granting of two separate licences (ELs 385 & 24304) in June 2004. The tenements are located approximately 180 km south-west of Nhulunbuy, and 80 km north of Numbulwar in south east Arnhem Land and consequently are processed under the Aboriginal Land Rights Act 1975 (ALRA). The tenements are considered prospective for base metal mineralisation, similar to that at McArthur River (HYC) in the McArthur Basin. Subsidiary targets are diamonds and bauxite. The tenements contain McArthur Group equivalent sediments adjacent to the eastern margin of the Walker Trough. McArthur Group sediments are host to the McArthur River (HYC) lead-zinc deposit located approximately 300 km to the south. Exploration completed during the current reporting period was directed at locating a stratabound base metal deposit by shallow auger drilling through an area of possible sand cover. Testing for bauxite was also conducted by auger drilling. The programme consisted of drilling a total 51 auger holes for 327m. Results of the auger drilling did not show any anomalous geochemistry below the sand cover. No significant results were reported for the bauxite auger holes.