METALLICA MINERALS LIMITED ABN 45 076 696 092 GPO Box 122, Brisbane QLD 4001 Tel: +61-7 3891 9611 Fax: +61-7 3891 9199
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METALLICA MINERALS LIMITED ABN 45 076 696 092 GPO Box 122, Brisbane QLD 4001 Tel: +61-7 3891 9611 Fax: +61-7 3891 9199 Annual and Final Report for EPM 14406 Prospect for the Fourth year of Tenure 12th December 2007 to the 11th December 2008 Prospect Project EPM 14406 NORTH QUEENSLAND HELD BY: ORESOME AUSTRALIA PTY LTD MANAGER: METALLICA MINERALS LIMITED AUTHOR: Patrick Smith and Shane Mardon PROJECTS: PROSPECT COMMODITIES: Ni, Cu, Ti, V, Au MAP SHEETS: 1:250,000 CROYDON 1:100,000 PROSPECT (7360) GEOGRAPHIC COORDS: Latitude: -18.89º Longitude: 142.25º DATE: April 2009 1.0 Summary The Prospect Project (EPM 14406) comprises 24 sub-blocks and is located approximately 80 kilometres south of Croydon on Prospect and Esmeralda Stations, in North-West Queensland. The EPM is held by Oresome Australia Limited (Oresome) a wholly owned subsidiary of Metallica Minerals Ltd (Metallica). The tenement was granted for a period of 5 years from the 12th of December 2004. In December 2008 Oresome relinquished the remaining 24 sub-blocks which comprised the tenement Oresome was targeting a variety of minerals at Prospect including Ti-V-Fe-Ta, Ni-Cu and diamonds possibly associated with numerous discrete strong magnetic targets that are concealed beneath Quaternary and Tertiary sediments which cover 100% of the tenement area. Since EPM 14406 was first granted in December 2005, Oresome has completed the following work on the tenement:- A review of all previous exploration data An Airborne EM survey Ground EM surveys to ground truth EM anomalies identified in the airborne data RC drilling to test 2 very strong – intense EM anomalies Petrological studies The RC drilling failed to identify any significant mineralisation and as a result of this work the tenement was subsequently relinquished. The above exploration work is summarised in this report and details of the EM surveys and the drilling are detailed in previous annual reports submitted to the Department of Mines and Energy (DME). Expenditure and work commitments for the fourth year of tenure as laid down in the grant document were not met due to the fact that Oresome had adequately tested the prospect and made a decision to relinquish the tenement in full. Prospect EPM 14406 – Annual and Final Report 07-08 2 Table of Content 1.0 Summary............................................................................................................. 2 2.0 Introduction........................................................................................................ 5 2.1 Location, Access and Infrastructure ................................................................ 5 2.2 Climate, Vegetation and Topography.............................................................. 5 2.3 Tenure .............................................................................................................. 5 2.4 Previous Tenure ................................................................................................. 7 2.5 Native Title...................................................................................................... 7 2.6 Landholders ..................................................................................................... 7 3.0 Geology ............................................................................................................... 8 3.1 Regional Setting............................................................................................... 8 3.2 Geology of EPM 14406 ................................................................................... 9 3.3 Metallica Drill Hole Geology ............................................................................ 13 4.0 Previous Exploration....................................................................................... 13 5.0 Work Complete by Oresome Australia Pty Ltd in 2004 – 2005 .................. 14 5.1 Airborne EM Survey...................................................................................... 14 5.2 Results of the Survey ..................................................................................... 14 5.3 Results and Recommendations...................................................................... 15 6.0 Work Completed by Oresome in the Second Year of Tenure ..................... 18 6.1 Ground EM.................................................................................................... 18 6.1.1 Warrior................................................................................................... 18 6.1.2 Hidden One............................................................................................ 20 6.1.3 Prospect Bore........................................................................................ 22 6.2 Drilling........................................................................................................... 23 6.2.1 Warrior Drilling..................................................................................... 25 Plate 1: Chip trays of RC 002A ......................................................................... 25 6.2.2 Hidden One............................................................................................ 26 Plate 2: Topography and vegetation of RC 003................................................. 26 6.2.3 Prospect Bore (RC 004)........................................................................ 27 Plate 3: Chip trays of RC 004 ............................................................................ 27 6.3 Downhole EM................................................................................................ 27 7.0 Work Completed in the Third Year of Tenure............................................. 30 7.1 Petrological Testwork.................................................................................... 30 7.1.1 RC002A ................................................................................................. 30 7.1.2 RC003 .................................................................................................... 31 7.1.3 RC004 .................................................................................................... 31 7.2 Conclusions from Petrology Work ................................................................ 31 7.3 Drill Site Rehabilitation................................................................................. 32 8.0 Work Completed in the Fourth Year of Tenure........................................... 32 9.0 Reference ............................................................................................................ 33 Prospect EPM 14406 – Annual and Final Report 07-08 3 Table of Figure Figure 1: Prospect Location Map.................................................................................. 6 Figure 2: Basement Geology of EPM 14406.............................................................. 12 Figure 3: Extend of Ariel Survey and location of EM Targets................................... 16 Figure 4: Aeromagnetic Image with EM targets superimposed on the Image ........... 17 Figure 5: TEM Modelling of the Warrior Target ....................................................... 19 Figure 6: Warrior Line 1 TEM profile........................................................................ 19 Figure 7: Warrior Line 2 TEM profile....................................................................... 20 Figure 8: TEM Modeling of the Hidden One ............................................................. 21 Figure 9: Hidden One Line 3 TEM profile................................................................. 21 Figure 10: Hidden One Line 5 TEM profile................................................................. 22 Figure 11: Prospect Bore Line 4 TEM profile.............................................................. 22 Figure 12: Drill Hole Locations and Airborne Magnetics............................................ 24 Figure 13: Depth RC 002A intersected the conductive body. ...................................... 28 Figure 14: Size and Shape of EM anomaly .................................................................. 29 Table of Tables Table 1: EPM 14406 Sub-blocks..................................................................................... 7 Table 3: Geological Sequence in the North-Western Georgetown Inlier........................ 8 Table 4: EM Targets Identified by Airborne Survey..................................................... 14 Table 5: Drill Hole Locations and Depths..................................................................... 23 Table 6: Assay Results................................................................................................... 25 Plates Plate 1: Chip trays of RC 002A ..................................................................................... 25 Plate 2: Topography and vegetation of RC 003............................................................. 26 Plate 3: Chip trays of RC 004 ........................................................................................ 27 Prospect EPM 14406 – Annual and Final Report 07-08 4 2.0 Introduction 2.1 Location, Access and Infrastructure The Prospect Project (EPM 14406) is located on Esmeralda and Prospect Station, approximately 80 kilometres South of Croydon in North-West Queensland, (Figure 1). It is accessed via formed dirt roads through Esmeralda Station SSE of Croydon. The track is un-trafficable during, and for a time after, the northern wet season. The project is contained within the Croydon