EL 29550 Annual Report for Year 2 Batchelor Project Period 1 August 2013 to 31 July 2014

Abstract

In Year 2, work consisted of: prospecting; mapping of outcrops of Mount Deane Volcanic unit (MDV); collecting of rock chip and soil samples (10 rock chip and 20 soil samples were collected); assessing of ground conditions for ground electromagnetic, gravity and induced polarisation surveys; site verification for drilling; planning of aerial electromagnetic survey; commencing interpretation of all geochem data (rock-chips, drill chips and core drill data) with focus on pathfinder mineral and elemental ratios; digitising of past data; continuing the compilation of data base from historical and Korab generated geochemical, geophysical and geological data including data from open file and closed file reports, government data bases and private vendors; commencing of metallurgical test work on samples from Winchester to test them for calcining potential; commencing of scoping study for the development of the Winchester magnesite deposit as direct shipping ore mining operation. Review has shown the Au potential to be limited to the northern section of the licence and to the Sundance mineral leases which are wholly contained with the licence. Several Cu anomalies were confirmed proximal to major syncline and to minor faults and in the vicinity of buried conductors associated with faulting. Two of these Cu prospects are associated with Ni anomalies and potential conductors. Four Zn prospects were assessed; three of them are associated with Cu and Ni anomalism. TEMPEST data shows conductive rocks at shallow depth below these anomalies. There appears more MDV outcrop than previously assessed. Rock samples taken from MDV outcrop have not yet been assayed but visual inspection of weathered rock suggest potential for massive sulphide at depth. Where MDV outcrops it occurs in difficult terrain and mapping is difficult. Field mapping of MDV also is difficult because it is obscured by Acacia Gap quartzite.