Annual Report for EL 24539 period ending 15 August 2015

Abstract

EL 24539 consists of 5 graticular blocks which 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. 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. Three holes of RC / Diamond core tail drilling have been carried in a previous period for a total of 724 meters. RC data have recently been assayed and diamond core is scheduled to be assayed by the end of the current calendar year. In the current year geophysical data were reviewed and a radiometric interpretation carried out. Some field work was completed using metal detectors. Access restrictions imposed by an AAPA Authority Certificate have severely hindered the progress of exploration while a far less restrictive exploration access agreement remains in place with the Traditional Owners. A revised Authority Certificate application is currently with the AAPA and we are hopeful of progress. A revision of the AAPA Authority Certificate will enable an expanded ground exploration and drilling program. A further drilling program has already been financed.