9th Annual Report for EL 24539 period endng 15 August 2014

Abstract

EL 24539, originally consisting of 5 graticular blocks was granted on the 16th August, 2005. No reductions have occurred and a second 2 yr renewal was granted. The licence encompasses the same rock sequences that are host to the nearby McCarthy's and Evelyn lead-zinc-silver mines and Moline gold mines. Early Proterozoic metasediments of the Mt Partridge, South Alligator and Finnis River Groups are exposed by asymmetrical folds along north-westerly trending axes that are abruptly truncated to the west by the Allamber Springs Granite of the Cullen Batholith. Mineralisation styles being investigated are consistent with types known throughout the Pine Creek Orogen with a particular focus on copper, lead, zinc, silver and gold. At the end of the last active phase of consolidated exploration in 1995 it was concluded that the area remained prospective for base & precious metals. More recently the iron ore potential of the area has also been noted. Historical exploration has pursued extensive surface mapping and sampling and very limited drilling and costeaning. The current exploration methodology has extensively used various high resolution airborne geophysical techniques and some targeted rock-chip sampling programs to define prospective areas. During the current reporting period, detailed geological and structural logging of the core was undertaken and confirmed the source of the geophysical anomaly as being due to magnetic pyrrhotite which represented up to 15% of the rock volume over the main sulphide zones. Significantly, intervals of up to 2% sphalerite were identified and this, together with zones of base-metal stockwork, chlorite alteration and limited quartz veining, implies the possibility of a hydrothermal base-metal mineralising event in the area. Vectors to potential mineralisation were identified from historic surface geochemistry and require follow up work.