Third Annual Report EL 31423 for the period 2 November 2018 to 1 November 2019 Mount Bundey Project

Abstract

This report covers exploration during Year 3 of EL 31423. Previous work includes a review of some of the available NTGS datasets and open file reports by previous explorers in the region, reconnaissance mapping in the Halkitis Mt Bundey aggregate quarry, limited geochemical surface rock sampling and lithogeochemical sampling of a limited number of shallow blast holes in the quarry floor, and a comprehensive examination of mineralogy and petrology of the intrusive rocks to determine the potential for porphyry copper deposits to have formed from the alkalic igneous rock suite. While there has been considerable exploration for gold, base metals iron and uranium in the region surrounding Mt Bundey and Mt Goyder using the intrusion related model, and mining operations for gold at Toms Gully, Rustlers Roost, and iron ore at Pritchard's Iron Lode, overall the area of this EL has been inadequately explored for mineral deposits, given the potential of the district's intrusive suite and the fertile chemical sediments of the Pine Creek Orogen that they intrude. Given Halkitis Bros' long standing stake in the district, an ongoing interest in its metallic mineral potential via its Mineral Els is appropriate. EL 31423 straddles the Arnhem Highway and Mary River, approximately 120km by road southeast of Darwin in the Mount Bundey region of the NT, where the holders of EL 31423, Halkitis Bros Pty Ltd (HB), recommenced quarrying operations at Mt Bundey in 1992 to supply high-quality aggregate for infrastructure and construction purposes. The original quarry dates from the 1970's. HB observed the presence of minor sulfide mineralisation in the quarry as benches are advanced. They considered it was in their interests to apply for an exploration licence over the quarry and surrounding area and to carry out enough exploration to determine whether these signs were of economic interest. Exploration work during the third year of EL 31423 has been basically a consolidation of earlier work. The previous work included establishment of a GIS database incorporating some past work, brief mapping of lithologies, alteration and mineralisation in the quarry, the collection, description and assay of various quarry products and examples of mineralised materials in and around the quarry. Mapping showed that that the Mt Bundey Igneous Complex comprises more intrusive phases than have been previously recognised and now includes equigranular and porphyritic syenite, quartz syenite, quartz monzonite, monzogranite, pegmatite, trachyte, and lamprophyre. The alkalic nature of the intrusive suite and the overall equigranular phaneritic to porphyritic nature of most of these rocks suggested that this complex may be assigned to the alkali group of porphyries. A major review of the petrography of the Mount Bundey intrusive complex was undertaken in 2016 by Dr Anthony Crawford of Hobart, an expert on Porphyry Copper mineral systems on behalf of the Holders. The study found little evidence of the alteration zoning that accompanies Porphyry Copper systems and concluded that the potential for Porphyry Copper type deposits at depth beneath the quarry was low. The Crawford review is a thorough evaluation of this potential. As a result, further exploration work has been directed at the styles of mineralisation known to occur in the surrounding district. These include iron ore, gold, and base metal mineral deposits, with evidence of uranium, REE and tungsten as potentially viable by- products. A programme to evaluate these within the EL has progressed, involving further compilations of past geophysical, geochemical, and drilling data to generate a work programme to establish targets for further exploration. Some data critical to the study has only recently become available for public access. Recent results of the ongoing review of past work in the district have led to the application for additional ELs to the north and south of EL 31423, and more recently, to the evaluation of the Goyder Flat (Billabong) Prospect, discovered by previous explorers in the north- east corner of the EL. This area has now been the subject of two outcrop mapping and sampling campaigns in cooperation with the Land Manager of Annaburroo, and a program is being developed to attempt to conclusively define the gold/ tungsten potential of this setting. In the period under review, regular monitoring of the geochemical content of quarry product on a nominal monthly basis was continued, as well as a reconnaissance study of the metal content of veins encountered in and around the quarry.