GeoDiscovery Group

GeoDiscovery Group
Minerals exploration, discovery and management
ELs 22209, 22210 and 24725
ROBINSON RIVER PROJECT
NORTHERN TERRITORY
FIRST ANNUAL REPORT FOR THE PERIOD ENDING 8th JUNE 2006
By Neil McLean
Geo Discovery Group Pty Ltd
On behalf of Gulf Mining Company Pty Ltd, the tenement holder
4 July 2006
GeoDiscovery Group Pty. Ltd. ABN No. 42 087 256 853
PO Box 59, Sherwood, Queensland, 4075, Australia
LIST OF CONTENTS
Page
SUMMARY
1.
INTRODUCTION
1
2.
TENEMENT INFORMATION
1
3.
WORK UNDERTAKEN DURING THE REPORTING PERIOD
1
4.
EXPENDITURE FOR YEAR 1
1
5.
FORWARD PROGRAM FOR YEAR 2
1
LIST OF FIGURES
Figure 1
Location Plan
Figure 2
Location of planned heavy mineral sampling
LIST OF APPENDICES
Appendix 1.
Diamond Potential within ELAs 22209, 22210 and 24725 Robinson River NT
SUMMARY
A review of previous exploration activity in and around ELs 22209, 22210 and 24725 has highlighted
the potential for discovering diamonds within the area. Up to five micro-diamonds, five chromites and
a single picro-ilmenite have reportedly been discovered by previous explorers within the area of the
licences. In addition there are reports of macro-diamonds having been discovered within a 30km
radius of the tenements. A review of existing wide-spaced aeromagnetic data has identified up to
twenty three (23) discrete magnetic features.
A small program of heavy mineral sampling is proposed in the vicinity of the discrete magnetic
anomalies.
1
1.
INTRODUCTION
Gulf Minerals Company Pty Ltd is the holder of three granted Exploration Licences, EL 22209, EL
22210 and EL 24725, centred on an area approximately 80km south-east of Borroloola in the
Northern Territory (Figure 1). Access to the general area is via the unsealed main road from
Borroloola to the Queensland border. Within the area of the ELs access is via station tracks. This
report presents the results of work undertaken during the period ending 8th June 2006.
2.
TENEMENT INFORMATION
ELs 22210 and 24725, comprising areas of 74,589 ha and 35,372 ha respectively, were granted on
9th June 2005 for a period of six years. EL 22209, comprising an area of 55,170 ha, was granted for a
period of six years on 3rd June 2005.
3.
WORK UNDERTAKEN DURING THE REPORTING PERIOD
The principal activities undertaken on the project have consisted of a review of previous exploration
work and an assessment of the diamond potential of the area. A detailed report outlining this work is
presented in Appendix 1.
This report stated that previous sampling for diamonds within the area of the tenements had resulted
in the discovery of five micro-diamonds, five chromites and a single picro-ilmenite. Macro-diamonds
had also been reported from within a 30km radius of the tenement boundaries. An assessment of
wide-spaced (500m) aeromagnetic data identified up to twenty-three (23) discrete magnetic features
that warranted follow-up.
4.
EXPENDITURE FOR YEAR 1
EL 22209
Geological consultancy (Geo Discovery Group)
Tenement consultancy (McColl Exploration)
15% Administration
EL 22210
Geological consultancy (Geo Discovery Group)
Tenement consultancy (McColl Exploration)
15% Administration
EL 24725
Geological consultancy (Geo Discovery Group)
Tenement consultancy (McColl Exploration)
15% Administration
5.
$3,075
$3,000
$911
Total $6,986
$3,075
$3,000
$911
Total $6,986
$3,075
$3,000
$911
Total $6,986
FORWARD PROGRAM FOR YEAR 2
A work program involving the collection of heavy mineral samples in the vicinity of the identified
discrete magnetic anomalies has been proposed as shown in Figure 2.
2
This will involve the collection of either loam samples or stream samples depending on the nature of
the sampling medium. The samples will be investigated for the presence of diamond-indicator
minerals and possible diamonds.
The estimated budget to achieve this work is as follows:
EL 22209
Sample Assays
Geological Contractors
Field Support
Geophysical Contractors
Travel, Accom, Meals etc
Supplies & Freight
Tenement Admin
Contingency
$16,000
$8,500
$3,000
$1,500
$1,500
$1,000
$500
$3,500
Total $38,000
EL 22210
Sample Assays
Geological Contractors
Field Support
Travel, Accom, Meals etc
Supplies & Freight
Tenement Admin
Contingency
$2,000
$1,000
$500
$1,000
$500
$500
$500
Total $6,000
EL 24725
Sample Assays
Geological Contractors
Field Support
Travel, Accom, Meals etc
Supplies & Freight
Tenement Admin
Contingency
$5,000
$2,500
$1,000
$1,500
$500
$500
$1,000
Total $12,000
APPENDIX 1
Diamond Potential within ELAs 22209, 22210 and 24725 Robinson River NT
GeoDiscovery Group
A.B.N. 42087256853
Minerals exploration, discovery and management
PO Box 59, Sherw ood, Qld, 4075, Australia
Phone +61 7 3278 5733
Fax
+61 7 3278 5744
w w w . g e o d i s c o v e r y. c o m . a u
GULF MINING COMPANY PTY LTD
Diamond Potential within ELAs 22209, 22210
and 24725 Robinson River NT
Report No:
2330 - 2
GD Project Reference No: 2330
Author:
M.Dugmore
Date:
7 June 2005
Disclaimer
The conclusions and recommendations based on any interpretations of geoscientific data contained in this report
are provided at the request of the client. GeoDiscovery Group Pty Ltd accepts no liability resulting from any
commercial decisions or actions taken by the client based on the recommendations presented in this report.
-1-
CONTENTS
Page
EXECUTIVE SUMMARY .................................................................................................................. 1
1
INTRODUCTION......................................................................................................................... 2
2
PREVIOUS EXPLORATION ..................................................................................................... 2
2.1
2.2
2.3
2.4
3
CURRENT ACTIVITY................................................................................................................ 6
3.1
4
COMPETITOR REVIEW............................................................................................................... 6
REGIONAL GEOLOGY AND MINERALISATION .............................................................. 7
4.1
4.2
5
ASHTON .................................................................................................................................... 4
CRA EXPLORATION ................................................................................................................. 5
STOCKDALE .............................................................................................................................. 5
HELIX........................................................................................................................................ 6
REGIONAL GEOLOGY ................................................................................................................ 7
MINERALISATION ..................................................................................................................... 9
WORK COMPLETED................................................................................................................. 9
5.1 GEOPHYSICAL INTERPRETATION .............................................................................................. 9
5.1.1 Magnetics ........................................................................................................................ 10
5.1.2 Digital Terrain ................................................................................................................ 11
6
CONCLUSIONS ......................................................................................................................... 13
7
RECOMMENDATIONS............................................................................................................ 13
FIGURES
Figure 1. Location of ELA22209 and ELA22210 ................................................................................................. 2
Figure 2. Previous diamond exploration activity................................................................................................... 3
Figure 3. Positive DIM within and adjacent to Gulf ELAs ................................................................................... 4
Figure 4. Ashton ELs 7195, 7295, 7296 and 7474 ............................................................................................... 4
Figure 5. Ashton EL7265 ...................................................................................................................................... 4
Figure 6. EL4990 CRAE ....................................................................................................................................... 5
Figure 7. Stockdale Els .......................................................................................................................................... 6
Figure 8. Competitor tenure position..................................................................................................................... 7
Figure 9. Regional Geology of Gulf ELA's ........................................................................................................... 8
Figure 10. ELA22209 showing extensive alluvium .............................................................................................. 9
Figure 11. Magnetic image for ELA22209.......................................................................................................... 10
Figure 12. Magnetic image foe ELA22210 and 24725........................................................................................ 11
Figure 13. Digital terrain ..................................................................................................................................... 12
APPENDICES
APPENDIX 1
HISTORICAL ELS & CRS
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 - 2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-1-
EXECUTIVE SUMMARY
ELA22209, 22210 and 24725, held by Gulf Mining, are considered prospective for diamonds.
The Merlin diamond deposit occurs 30km west and macrodiamonds are known within a
radius of 30km of the areas. Up to 5 microdiamonds, 5 chromites and 1 picro-ilmenite have
been located by previous explorers within the tenements.
Ashton were the major player in the 1990’s but their program was apparently curtailed due to
access problems with the NLC over the area now covered by ELAs22209 & 22210.
Thin alluvial cover and flat lying terrain in EL22209 would have prevented effective
exploration for diamonds in this tenement. The flat lying Barkly Tableland dominates
EL22210 & 24725 and in all cases, these areas of low relief and poor drainages may contain
preserved kimberlite intrusives, which had not shed significantly into the present drainages.
Current magnetics data is at 500m line spacing and generally considered too broad to be
effective in locating magnetic kimberlite intrusives. Although some 23 disccrete magnetic
anomalies resembling kimberlites have been identified in the existing data.
It is recommended that either detailed magnetics or FalconTM (or both) be flown to fully
appraise the potential for diamonds within both these ELAs.
Gulf Mining is seeking a joint venture partner to pursue the evaluation of these areas.
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-2-
1
INTRODUCTION
Gulf Mining is the holder of EL Applications 22209, 22210 and 24725. The areas are located
90km southeast of Borroloola and 120km east of Cape Crawford in the NT. The Merlin
diamond deposit occurs 30km west of the tenements. First years rent has already been paid
and the areas are to be granted very soon.
Figure 1. Location of ELA22209 and ELA22210
2
PREVIOUS EXPLORATION
Exploration for diamonds within and near to the Gulf Mining ELAs has been carried out in
the past. The proximity of the area to Ashton’s Merlin Mine has ensured this exploration
activity (Figure 2).
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-3-
Merlin
Figure 2. Previous diamond exploration activity
(Gulf ELAs in red, previous diamond explorers in blue)
Positive results have been recorded within and adjacent to the Gulf ELAs. In particular,
many macrodiamonds are known from within a 30km radius of the Gulf ELAs (Figure 3).
Merlin
30km
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-4Figure 3. Positive DIM within and adjacent to Gulf ELAs
(Dk Blue: macrodiamonds, Pale blue: microdiamonds, yellow: chromite, green: picro-ilmenite, purple square:
kimberlite)
2.1
Ashton
Ashton, between 1992 and 1997, explored most of ELA22209 under historic ELs 7295 and
7296. The west part ELA22210 was explored under ELs 7195. The northern part of
EL24725 was historically covered by ELs7195, 7474 and 7265.
Figure 4. Ashton ELs 7195, 7295, 7296 and 7474
Figure 5. Ashton EL7265
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-5-
Positive results were revealed from both 7295 & 7296 with 2 microdiamonds discovered.
Within Ashton ELs 7195 and 7265 (Gulf ELA 22210), it was considered that low relief and
poor drainage could preserve kimberlite intrusives. A number of Landsat anomalies were
also identified as potential pipes. Reconnaissance stream sampling returned positive results
with 4 microdiamonds discovered. Significant apatite was recorded in a sample in the NW of
EL24725 and although follow-up was recommended, none was done.
EL9675 abutted ELA22209 immediately to the west where a chromite was recorded on the
common tenement boundaries.
Ashton considered these areas prospective but further work was curtailed due to access
problems associated with the Robinson River Land Claim.
2.2
CRA Exploration
EL4990 was held by CRAE over ELA22210 in the late 1980’s. Three microdiamonds was
found in separate samples during this program.
Figure 6. EL4990 CRAE
2.3
Stockdale
Stockdale held ELs4466 and 4467 over ELA22210 in 1986 and discovered a picro-ilmenite
and three chromites in four separate samples (Figure 7).
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-6-
Figure 7. Stockdale Els
2.4
Helix
Helix Resources explored under EL7354 in 1992 covering only a minor part of the eastern
side of EL22210. No positive results were reported.
3
CURRENT ACTIVITY
3.1
Competitor Review
Significant current exploration activity is evident to the immediate west of the Gulf
tenements Figure 8.
Most significant is the recent announcement by Gravity Diamonds of a diamondiferous
kimberlite within one of their drillholes into a FalconTM target at Abner Range, west of
Merlin. This project area includes a JV on RTZ ground.
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-7-
Figure 8. Competitor tenure position
(black:Gravity, blue:Ashton, green:RTZ, brown:Astro, yellow:Striker, thick red:Gulf)
4
REGIONAL GEOLOGY AND MINERALISATION
4.1
Regional Geology
Proterozoic sediments of the Wearyan Shelf dominate the rocks covering the Gulf tenements
(Figure 9). The oldest rocks in the tenements are sandstone and conglomerate of the
Tawallah group, mostly outcropping in ELA22210 and 24725. Basalts of the Settlement
Creek Volcanics and Gold Creek Volcanics within the middle and upper part of the Tawallah
Group respectively, occur in the east part of ELA24725.
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-8-
Figure 9. Regional Geology of Gulf ELA's
(P10: Bukalara Sst, P9:Roper Group, P8: Nathan Group, P6: Tawallah Group, P6green: mafic volcanics)
(red dots: mineral occurrences)
The Tawallah Group sediments are unconformably overlain by the basal part of the McArthur
Group represented by the Echo Sandstone. The Mesoproterozoic Karns Dolomite
unconformably overlies the Echo Sandstone and is the dominant lithology in ELAs22209 and
24725. Sandstone and shale of the Mesoproterozoic Roper Group are unconformable over
the Karns Dolomite, outcropping in the west of ELA22209.
The Cambrian Bukalara sandstone occurs in the southern part of ELA22210 west of
ELA24725.
Minor isolated outcrops of Cretaceous sediments occur in of ELA24725 and north of
ELA22209.
Unconsolidated alluvial cover is widespread throughout ELA22209 but in discrete areas in
ELA22210 and 24725 (Figure 10).
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-9-
Figure 10. ELA22209 showing extensive alluvium
(extensive alluvium shown by fawn colours)
4.2
Mineralisation
No mineral occurrences are known within the Gulf tenement areas. A manganese occurrence
is located adjacent to the Robinson River off the immediate NE end of ELA22209 (Figure 9
and Figure 10). The host appears to be Karns Dolomite. A second manganese occurrence is
located just SE of the SE corner of ELA22210.
A copper occurrence within the Roper Group (Mountain Home mine) is located just to the
west of ELA22209.
5
WORK COMPLETED
5.1
Geophysical Interpretation
A review of the available geophysical data was carried out as a part of the assessment.
Although the survey specifications of 500m line spacing are generally considered too broad
to be effective for detection and location of kimberlites some 23 individual features have
been identified which could be of interest and maybe kimberlites.
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
- 10 -
5.1.1
Magnetics
The magnetic image in Figure 11 shows a number if discrete features within ELA22209. At
least 16 anomalies occur within this tenement. Many of these occur under alluvial cover.
5km
Figure 11. Magnetic image for ELA22209
Figure 12 shows a number of discrete magnetic features in ELA24725 and 22210.
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
- 11 -
Figure 12. Magnetic image foe ELA22210 and 24725
5.1.2
Digital Terrain
Figure 13 shows the terrain within the Gulf ELAs. The terrain is gently sloping to the northnortheast from the higher Barkly Tableland in the south. The Fortescue, Wearyan and
Robinson Rivers dissect the area draining northwards. A relatively flat plain with lowlands
dominates ELA22209 while ELA22210 and 24725 have some relief.
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
- 12 -
Figure 13. Digital terrain
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
- 13 -
6
CONCLUSIONS
Previous exploration companies have reported significant positive results both within and
adjacent to Gulf Mining EL Applications 22209, 22210 and 24725. A number of
macrodiamonds have been found within a radius of 30km from the Gulf tenements and up to
5 microdiamonds and 5 chromites have been located within Gulf tenement boundaries. A
single picro-ilmenite is also known.
Ashton has been the dominant player within the region but their exploration program
appeared to be curtailed prematurely due to access problems associated with the Robinson
River Aboriginal Land Claim and Northern Land Council.
Terrain also appears to have played a part in the ineffectiveness of the exploration for
diamonds with the Gulf ELAs. Most of ELA22209 is apparently covered by thin alluvium
and relatively flat lying therefore preventing intrusives to shed significantly into the present
drainages. EL22210 and 24725 have local areas of alluvium but also is marked by the
relatively flat Barkly Tableland also with the likelihood of preventing the shedding of
kimberlite indicators into drainages.
Although magnetics data is generally considered too broad at 500m line spacing to be
effective in the location of anomalies associated with kimberlite intrusives, some 23 discrete
magnetic features are clearly visible in the existing data and warrant follow-up.
7
RECOMMENDATIONS
Flat terrain, thin alluvial cover, inadequate line spacing for current magnetics data and
curtailed work programs by previous explorers all contribute to this area not being fully
tested for diamonds.
The work program proposed is to fly detailed aero-magnetics at 100-200m spacing over the
ELs. This will enable the selection of new targets and definition of already identified targets
for follow-up loam and/or drill testing.
The attraction of Gravity Diamonds as joint venture partner and the flying of a FalconTM
survey will further add to the target inventory.
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
-1-
APPENDIX 1
Historical ELs and CRs
GULF ELA’S 22209, 22210 & 24725
Report Number 2330 –2 (November 2004)
GeoDiscovery Group Pty Ltd ABN 42 087 256 853
HISTORICAL Els FOR ELs22209 & 22210, ROBINSON RIVER, GULF MINING CO. PTY LTD
EL22209
EL No
AP No
Company
1343 Aust. Geophysical
2167 ?
2233 Aust. Geophysical
Commodity
Base metals
Mn
Base metals
CRs
1967-0005 1967-0007
1970-0075
1970-0005
1285
2671
BHP
Amoco
Mcarthur Basin
Base metals
3074
BHP
Mn/Base Metals
1980-0072 1981-0052
1982-0182
198200267
4990
CRAE
Diamonds
1987-0209 1988-0247
7269
Ashton
Diamonds
2000-0005 2000-0004
7295
Ashton/BHP
Diamonds
1995-0673 1994-0640
7296
Ashton/BHP
Diamonds
1995-0696 1994-0640
1326
United Uranium
CEC
Aust. Geophysical
Aust. Geophysical
Metals Investment Hldgs
?
Map only
Base metals
Base metals
Base metals
Base metals
Base Metals
CRs
1957-0018
1963-0004 1977-0020
1967-0005 1967-0007
1970-0005
1971-0082
1978-0103
1671
2666
2669
2888
Ward
Ashton/EZ
Ashton/EZ
CEC
Mn/Base Metals
Base Metals
Base Metals
Base metals
1979-0032 1980-0030
1983-0098
1983-0098
1982-352
4466
Stockdale
Diamonds
1986-0010 1986-0177
4467
Stockdale
Diamonds
1986-0010 1986-0177
19720151
19990529
19940501
19940501
19990073
19930651
19980158
19920393
19810070
19820344
19820067
19960631
19940501
19960478
19920433
19950631
19940640
19930651
19970121
19960716
19960160
19950683
19950151
19950430
19940640
19940501
19930651
19920205
EL22210
EL No
AP No
545
983
1343
2233
3083
4990
5771
CRAE
Golden Plateau
Diamonds
?
1987-0209 1988-0247
1989-0410 1990-0490
7195
Ashton
Diamonds
1997-0344 1997-0289
7265
7354
Ashton/BHP
Helix
Diamonds
Diamonds
1995-0695 1994-0640
1992-0439
7474
Ashton
Diamonds
1995-0694 1992-0432
Hard Copy
closed filepermission
required
19860187
19860187
19940678
19940563
19930548
19930448
19920397