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Exploration Permit for Minerals EPM 18635 Georgina 1 Annual Report for the period 25 October 2016 to 24 October 2017 Tenure Holder: Chinova Resources Cloncurry Mines Pty Ltd Author: D Jungmann Date: November 2017 Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017 SUMMARY Aim of Project Exploration Permit for Minerals EPM 18635 Georgina 1 was obtained to explore for iron oxide-copper- gold mineralisation, copper-gold mineralisation, massive sulphide lead-zinc-silver deposits, and uranium mineralisation hosted either within granites or within sandstone or limestone horizons. More recently the resource authority has been assessed for and phosphate mineralisation within the Middle Cambrian Beetle Creek limestone units of the Georgina Basin. Object of Report This report documents the exploration on EPM 18635 conducted from 25 October 2016 to 24 October 2017. Location EPM 18635 is centred approximately 120 km southwest of Cloncurry. Tenure EPM 18635 was granted to Chinova Resources Cloncurry Mines Pty Ltd, formerly Ivanhoe Cloncurry Mines Pty Limited on 25 October 2011 for a term of five years. EPM 18635 was renewed on 28 October 2016 for an additional 3 years. Datum Data are presented in GDA94 Map Grid of Australia Zone 54 datum. Summary of Work Exploration on EPM 18635 from 25 October 2016 to 24 October 2017 was restricted to a review of the magnetotelluric (MT) survey completed in the previous reporting period. Interpretation of the MT survey profile indicates there is no economic potential for phosphate mineralisation within EPM 18635. Depth to Proterozoic basement rocks is estimated to be between 300 m and 1000 m over the MT survey line and is considered too great to explore for Proterozoic base metal or gold mineralisation. No on ground exploration was completed in the reporting period. 20171116-EPM18635-Annual Report Page 2 of 13 Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017 TABLE OF CONTENTS 1. INTRODUCTION ............................................................................................................................ 4 2. LOCATION AND ACCESS............................................................................................................ 4 3. TENURE ........................................................................................................................................ 4 4. REGIONAL GEOLOGY ................................................................................................................. 7 5. LOCAL GEOLOGY ........................................................................................................................ 9 6. PREVIOUS EXPLORATION ......................................................................................................... 9 6.1 Other Companies ............................................................................................................ 9 6.2 Chinova ......................................................................................................................... 11 7. WORK DONE FROM 25 OCTOBER 2016 TO 24 OCTOBER 2017 .......................................... 12 8. PROGRESS OF WORK PROGRAM .......................................................................................... 12 9. PROPOSED WORK FOR THE NEXT REPORTING PERIOD ................................................... 12 10. REFERENCES ............................................................................................................................. 13 LIST OF FIGURES Figure 1: EPM 18635 regional location ................................................................................................... 5 Figure 2: EPM 18635 sub-block location ................................................................................................ 6 Figure 3: EPM 18635 Georgina Project Location Map ........................................................................... 8 Figure 4: EPM 18635 GSQ 2015 surface geology and MT survey location ......................................... 10 Figure 5: Georgina North MT conductivity section ................................................................................ 11 20171116-EPM18635-Annual Report Page 3 of 13 Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017 1. INTRODUCTION This annual report documents exploration conducted over the 30 sub-blocks of Exploration Permit for Minerals EPM 18635 from 25 October 2016 to 24 October 2017. The resource authority was identified as prospective for iron oxide-copper-gold mineralisation, copper- gold mineralisation and massive sulphide lead-zinc-silver deposits within the Proterozoic rocks of the Mount Isa Inlier; uranium mineralisation associated with either Proterozoic granites or within sandstone or limestone horizons of the Georgina Basin, and phosphate mineralisation within the middle Cambrian Beetle Creek limestone units of the Georgina Basin. EPM 18635 forms part of Chinova Resources Pty Ltd’s (Chinova’s) Georgina Project area that comprises six resource authority’s (Figure 1). Chinova’s initial exploration focus within the Georgina Project area was palaeochannel uranium deposits within the Phanerozoic sediments of the Georgina Basin. The exploration focus is now on phosphate mineralisation within the Middle Cambrian limestones. 2. LOCATION AND ACCESS EPM 18635 comprises two groups of sub-blocks which are centred approximately 125 km southeast of Mount Isa and 120 km southwest of Cloncurry (Figure 1). The sub-blocks of EPM 18635 lie within the Chatsworth and Trekelano Pastoral Leases. The tenement area is characterised by open-wooded, semi-arid landscape and incised by intermittent ephemeral creeks and gullies. Vehicle access is by the sealed Cloncurry-Dajarra Rd from Cloncurry to Duchess then via the Chatsworth-Phosphate Hill road south of Duchess. Road access is good from March to November with intermittent closure due to flooding and heavy rains possible from November to March. Station tracks can be used by four-wheel drive vehicles for access within the resource authority. 3. TENURE EPM 18635 comprising 100 sub-blocks was granted to Chinova Resources Cloncurry Mines Pty Ltd (CRCM), formerly Ivanhoe Cloncurry Mines Pty Limited on 25 October 2011 for a term of five years. CRCM is a 100% owned subsidiary of Chinova Resources Pty Ltd (Chinova). Forty sub-blocks were relinquished in October 2015, with 30 more sub-blocks relinquished when the EPM was renewed on 25 October 2016 for a further three year term. The resource authority currently comprises 30 sub-blocks. The sub-blocks are listed below and shown in Figure 2. EPM 18635 Sub-blocks: BIM Block Sub-blocks Clon 1393 d e j k o p t u y z Clon 1394 a b c d e f g h j k Clon 1538 q r s t u v w x y z Total = 30 retained sub-blocks 20171116-EPM18635-Annual Report Page 4 of 13 Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017 Figure 1: EPM 18635 regional location 20171116-EPM18635-Annual Report Page 5 of 13 Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017 Figure 2: EPM 18635 sub-block location 20171116-EPM18635-Annual Report Page 6 of 13 Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017 4. REGIONAL GEOLOGY The Neoproterozoic Georgina Basin is a broad intracratonic basin which straddles the Queensland and Northern Territory border. The Basin covers an area measuring 325,000 km2, of which 90,000 km2 are in Queensland (Withnal et al., 2012). In Queensland, the Basin crops out from north of Camooweal (Undilla sub-basin) to the Simpson Desert (Toko Syncline) and forms a belt between Duchess and east of Boulia (Burke River Structural Belt). The southeastern and southern margins of the Georgina Basin are obscured by the Jurassic to Cretaceous sedimentary rocks of the Eromanga Basin. The Georgina Basin is underlain by Proterozoic basement rocks of the Arunta Complex, the Mount Isa Inlier and the Aljawarra Craton (Tucker et al., 1979) and consists of up to 5,000 m of Phanerozoic marine and non-marine siliclastics and carbonates. Deposition is considered to have been roughly continuous from the Neoproterozoic to the Ordovician. The Basin’s deformational history is evident in the sediments. Minor to moderate folding and faulting is evident throughout the Basin. The strongest folding, faulting and overthrusting activity occurred along the southern margin. Chinova’s Georgina Project area (Figure 3) is situated within the Burke River Structural Belt (BRSB). The BRSB is a fault-bounded depositional basin measuring approximately 60 km long and 20 km wide (Figure 3) and underline by Proterozoic basement rocks of the Eastern Succession of the Mount Isa Inlier. Situated to the west of the BRSB is the Duchess Embayment, a small, shallow shelf basin located on a major basement high. Deposition within the BRSB consisted primarily of calcareous, and silica altered sediments of Phanerozoic age. These sediments were contained within the faulted margins of the Basin and may represent hinge lines of recurrent movement from the Upper Proterozoic to Cainozoic times (Russell and Trueman, 1971). Deformation of the Basin sediments is shown in north-south trending folds and faults which may have affected rocks up to Early Ordovician in age. These deformation events could be related to the Alice Spring Orogeny
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