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 (SE54-11) 1:250,000 and the Prospect (7360) 1:100,000 map sheets and is centred on 142.25ºE – 18.89ºS.
2.2 Climate, Vegetation and Topography
Topography of the Prospect area comprises flat open country with medium to dense scrub with localised open forests. The main drainage systems are the north-westerly flowing Roper River and Warrigal Creek and the prospect is bisected by numerous shallow branches of these rivers. The whole tenement is covered by deep sandy, silty and clay rich topsoils.
2.3 Tenure
The tenement was granted on the 12th December 2004 for a period of 5 years, details of the tenement are listed below and the sub-blocks which comprised EPM 14406 are presented in Table 1.
1 Date Granted: 12/12/2004
2 Mining District: Georgetown
3 Principal Holder: Oresome Australia Pty Ltd 4 Principal Holder’s GPO Box 122 Postal Address: Brisbane QLD 4001 5 0ther Holders: NIL
Prospect EPM 14406 – Annual and Final Report 07-08 5 Figure 1: Prospect Location Map
Prospect EPM 14406 – Annual and Final Report 07-08 6
6 Minerals Sought: All Minerals other than Coal
7 Term Sought: 5 years
8 Remarks: Prospect Project
Table 1: EPM 14406 Sub-blocks Region Block Sub Blocks No
NORMANTON 2427 Q, R, V, W, X 5 NORMANTON 2499 C, D, H, J, N, O, P, T,U, Y, 11 Z NORMANTON 2500 Q, V 2 NORMANTON 2571 D, E J, K, 4 NORMANTON 2572 A, F, 2 TOTALS 24
This tenement was relinquished in full in January 2009, one year prior to its expiry data
2.4 Previous Tenure
A list of previous exploration licences and relevant company reports, over all or part of what is now EPM 14406, are presented in the previous annual report to the Department.
2.5 Native Title
The land is subject to native title and the native title claim number over the EPM is QC01/22. The claim is by the Tagalaka people. The Takalaka people have been notified and have identified a Nominated Body who will represent the group in discussions with Oresome.
2.6 Landholders
The EPM covers three properties, which are used primarily for breeding and grazing cattle. Details of the properties and their relevant owners have been listed in previous annual reports submitted to the mines department.
Prospect EPM 14406 – Annual and Final Report 07-08 7
3.0 Geology
The tenement covers a portion of the Croydon 1:250,000; geology and the Prospect 1:100,000 topographic and geology sheets.
3.1 Regional Setting
EPM 14406 is located approximately 45 km west of the outcropping Georgetown Inlier close to the divide between the Mesozoic Carpentaria and Eromanga Basins. Tertiary Sediments of the Karumba Basin overly the Mesozoic sequences. The Georgetown Inlier to the east is dominated by outcrops of the 1540 Ma Croydon Volcanic Group and coeval Esmeralda Granite, both are essentially undeformed. The sequence is underlain by sediments of the Langlovale Group and overlain locally by the Inorunie Group. Further to the east metasediments of the Etheridge Group dominate. Very minor Permian volcanics and intrusives are also present.
The Proterozoic is overlain by Mesozoic and Tertiary sediments which are preserved as outliers within the Georgetown Inlier and extend as a flat lying cover sequence up to 300 metres in thickness westward to the margins of the Mount Isa Inlier.
The stratigraphy of the north-western portion of the Georgetown Inlier and overlying sedimentary cover is summarised in Table 3 below.
Table 3 : Geological Sequence in the North-Western Georgetown Inlier UNIT AGE LITHOLOGY Quaternary Sand, gravel, silt and mud - alluvial and channel deposits
Tertiary-Quaternary Residual and alluvial sands, gravels, silt and soil Tertiary-Quaternary Ferricrete, alluvium and colluvium Wallumbulla Cretaceous Sandstone and mudstone Formation Gilbert River Jurassic-Cretaceous Dominantly sandstones, lesser finer clastics Formation Eulo Queen Group Jurassic Sandstone and siltstones, minor conglomerates Permian Rhyolites, local andesites and granodiorites
Prospect EPM 14406 – Annual and Final Report 07-08 8 Inorunie Group Mid to Late Dominantly sandstones and orthoquartzites, minor siltstones Proterozoic and mudstones Esmeralda Granite Middle Proterozoic Dominantly biotite granites, some with muscovite, garnet and minor granites Croydon Volcanic Middle Proterozoic Dominantly rhyolites and dacites, minor sediments and Group andesites Forest Home Middle Proterozoic Biotite trondhjemite Trondhjemite Langlovale Group Middle Proterozoic Sandstones overlain by finer clastics
Etheridge Group Middle Proterozoic Dominantly fine clastics including carbonaceous shales
3.2 Geology of EPM 14406
Due to the absence of outcropping basement rocks on EPM 14406 the geology of the prospect has been interpreted from drill hole data.
Exploration drilling indicates that depth to basement varies from between 34m at the southern end of the prospects and gradually increases to 124m at the northern end. The cover sequence comprises Tertiary sands and gravels overlying red-brown gritty clays, and locally a soil profile preserved in the basement. The underlying Mesozoic sequence commences with a sequence dominated by laminated carbonaceous shales (Wallumbilla Formation), this overlies a lenticular sandier sequence which may yield artesian water flows. The sands and shales are commonly inter-bedded and occasionally thin coal seams are recorded.
Within the Proterozoic basement, several different lithological groups have been recorded in previous exploration including:
Mafic Rocks – a range of gabbroic intersections are generally associated with elliptical to curvilinear weak magnetic highs. The gabbros include layered fractionated intrusions with significant titano-magnetite in the Prospect Bore area.
The gabbros are anomalous in TiO2, V and platinoids and occasionally Au and can contain several zones containing in excess of 100 ppm Cu as chalcopyrite.
Prospect EPM 14406 – Annual and Final Report 07-08 9
Where gold is present it is associated with quartz-carbonate veins. The gabbros appear to intrude fractured arkoses and quartzites, which show no sign of re- crystallisation or metamorphism. Composite core samples from three holes drilled
into this layered gabbroic body indicate 3.28 - 4.22% TiO2 and 14.0 - 20.7% Fe2O3
(total Fe). Titaniferous intervals average up to 15.5% TiO2. Drilling of a number of weak to moderate anomalies did not replicate high titanium and vanadium oxides found at Prospect Bore. Magnetite, titano-magnetite and ilmenite account for the magnetic anomalies. Limited whole rock analysis indicates some very iron rich
gabbros with 18 - 32% Fe2O3 (total Fe).
Porphyritic felsic intrusives and volcanics – these occur in a number of holes possibly intruding a gabbro in PB10, and in a fault contact with coarse clastic sediment in the Prospect Bore area. Thin sections of intrusives are described as porphyritic micro-granite and graphitic granite, phenocrysts include quartz, k- feldspar, plagioclase and biotite. Accessory ilmenite is common and graphite occurs as inclusions. Locally weakly magnetic volcanics were intersected.
Granites – granite probably related to the Esmeralda Granite occurs northeast of Clara River and possibly in Hailstone Bore to the northwest. At Plain Bore the granite also contains apatite, allanite and zircon and is on the southern margin of a magnetic plateau. PDHC1-1 which was drilled into an elliptical magnetic anomaly intersected granite with trace relic magnetite associated with aggregates of limonite and sphene and lacked graphite inclusions typical of the Esmeralda Granite.
Mixed Granite and Shale – two holes intersected a sequence of brecciated granite in a matrix of quartz, feldspar and graphite clots with some relic shale. The log poorly describes the sequence and no description of the minerals, which may have caused the magnetic anomaly, is included.
Quartzites and arkoses – fractured quartzites with chlorite and carbonate bands, arkoses with heavy mineral lamination and gritty sandstone are present in the Prospect Bore area, possibly intruded by gabbros and in fault contact with porphyritic
Prospect EPM 14406 – Annual and Final Report 07-08 10 felsic intrusives. One petrological sample indicates no sign of re-crystallisation or metamorphism. This sequence may have affinity with the Inorine Group or Langlovale Group which overlay and underlay the Croydon Volcanic Group respectively.
Metamorphic sequences – quartzose, chloritic and mica schists were intersected in one hole (Lily Bore) in the northeast of EPM 14406 indicating the presence of older metamorphic basement in the area or local higher grade shear zones. The structural history of the basement intersected in and around Prospect Bore is unknown, however the area is characterised by a number of regional lineaments including the NW trending Cooralie Structure and the parallel complex Borer River Fracture Zone. A basement geology map of the prospect area is included as Figure 3; the map was produced by the Geological Survey of Queensland using data from exploration drilling.
Prospect EPM 14406 – Annual and Final Report 07-08 11 Figure 2: Basement Geology of EPM 14406
Prospect EPM 14406 – Annual and Final Report 07-08 12
3.3 Metallica Drill Hole Geology
The geology intersected in the four holes completed by Metallica in October 2006 is detailed below:-
Holes RC 001, RC 002 & RC 002A (Warrior) all intersected similar geology. They were drilled to test a high intensity EM anomaly located on the north eastern side of the prospect. They all intersected alluvial sands and clays to approximately 60m. The alluvial sediments overlay 10 - 20m of black carbonaceous shales, rich in graphite, Py (Tr-1%) and PO(1-5%) and a massive Grano-diorite containing minor graphite, Py (Tr-5%) and PO (0.5-10%). The concentrations of both these minerals could account for the high TEM anomaly.
Hole RC 003 (Hidden One) intersected Tertiary sands (brown / yellow fine sands and clays) down to a depth of 44m.The Tertiary sediments overlie the Mesozoic Wullumbilla Formation which are dominated by black carbonaceous shales (i.e. 44 - 48m). A large intrusive quartz vein (48-114m with Tr-Py) lies between the Wullumbilla Formation and a Porphyritic micro-granite (114-192). The micro- granite comprised phenocrysts of quarts and K-feldspars and contains Tr-1% of pyrite and pyrrhotite (PO) which possible explains the strong EM anomaly.
Hole RC 004 (Prospect Bore) intersected brown to pink fine to course alluvial sands and clays (24m) underlain by a Gabbro (24-139m). The gabbro is slightly magnetic with traces of Py, Ag & Zn. i.e. 130-138m, 8m @ 1.93ppm Ag, 138-140m 4m @ 4.39ppm Ag and 1605ppm Zn. The magnetite intersected in the hole explains the weak magnetic high found in the Prospect Bore area. The hole however did not replicate the high TiO, V and platinoids identified in previous drilling. The gabbro is underlain by a Quartzite (139 - 175m) which contains no significant mineralisation.
4.0 Previous Exploration
A summary of previous exploration by various companies over the Prospect area (particularly Prospect Bore) can be viewed in the Annual Report submitted to the department by Metallica in the first year of tenure.
Prospect EPM 14406 – Annual and Final Report 07-08 13 5.0 Work Complete by Oresome Australia Pty Ltd in 2004 – 2005
5.1 Airborne EM Survey
In the 2004 – 2005 year of tenure Oresome completed an airborne EM survey over the eastern part of the prospect area. The survey was designed to cover those areas of the tenement which were identified as being the most prospective to host mineralisation using data from a previous airborne magnetic survey and drill hole data. The survey was completed in September 2005 and a total of 454 line kms were flown. A total of 35 E-W lines were flown and 2 tie lines were also flown. The survey was bounded by the following coordinates, 18.80˚S, 142.09˚E and 18.92˚S, 142.29˚E
5.2 Results of the Survey
The survey identified 10 anomalies. All the anomalies were ranked from 0 to 4; a rating of 0 assigned the anomaly as a spurious conductor and a rating of 4 as a very good EM target. No anomalies rating 0 or 4 were identified at Prospect. Three anomalies occurred with a rating of 3, six anomalies had a rating 2 and one anomaly had a rating of 1. A summary of the location of the anomalies and relevant notes is presented in Table 4.
All datum were processed and interpreted by Fugro’ geophysicist at their office in Perth. A report detailing the survey and the results is presented in the previous annual report to the department.
Table 4 : EM Targets Identified by Airborne Survey
ID Line FID X Y Value Rank Memo
3 L20041 81375 628386 7919052 38 3 Late time anomaly coincident with mag high Big response in both components but close to a 11 L20351 8409 633467 7906635 129 3 weak 50Hz signal Big response in slow decay in both 12 T27021 78691 628580 7918920 54 3 components and coincident with magnetic high Late time anomaly in both components close 6 L20031 81199 626819 7919437 59 2 to small 50Hz signal 7 L20051 81843 624901 7918638 62 2 Late time anomaly possibly an edge effect Weak anomaly in x component. Possible 8 L20051 81892 627986 7918641 52 2 overburden thickening 9 L20061 82109 625906 7918232 115 2 Small anomaly in late channels. Possible
Prospect EPM 14406 – Annual and Final Report 07-08 14 overburden thickening 10 L20262 5615 631202 7910236 -23 2 Anomalous response just overburden variation Fairly weak late time anomaly coincident with 13 T29011 79114 632003 7907787 147 2 moderate mag high but close to 50Hz high Weak late time response. Rapid decay – 14 L20271 80067 630419 7909844 -18 1 probably overburden variation
5.3 Results and Recommendations
After assessing the data Fugro identified a number of targets which they recommend for follow up work. They note that the western side of the survey area is dominated by overburden and has an estimated conductance of between 10 - 50 Siemens, while the eastern side has a conductance of between 1 - 5 Siemens. All the anomalies picked were on the eastern side of the survey area.
Three high priority “rating 3” anomalies were identified. Two of these, (ID 3 and 12) correspond to the same target detected on separate lines. The anomaly exhibits a late time exponential decay with a time constant of around 9 – 10 ms. Fugro states that this could represent a substantial conductor. The third anomaly rating 3 (ID 11) is on the southern most line. It is clear in the x and y components and exhibits a decay constant of between 4 –5 ms. Of the anomalies rating 2, ID 6 is thought to be the most valid target. The anomaly shape is consistent with a conductor dipping to the east. Both ID 7 and 8 give good EM responses but could be due to edge effects from the adjacent conductive overburden. Diagrams showing the extent of the survey and a summary of the results are included as figures 3 and 4.
Prospect EPM 14406 – Annual and Final Report 07-08 15
6.0 Work Completed by Oresome in the Second Year of Tenure
In the second year of tenure Metallica completed:
Ground EM surveys over three areas to follow up the AEM anomalies identified in the previous year of tenure. Drilled four RC holes for 756m Completed down-hole EM surveys to determine if the TEM targets had been intersected by the drilling.
6.1 Ground EM
Two high intensity airborne EM anomalies and one magnetic anomaly were covered with ground EM surveys. The anomalies were designated as Warrior, Hidden One and Prospect Bore. Results of the TEM survey are summarised below, the raw data is included in the previous annual report submitted to the mines department.
6.1.1 Warrior
Two TEM lines were completed over the Warrior AEM target. One line was oriented NS (Line 1) with a second line oriented EW (Line 2). Line 1 showed a significant late time anomaly between 7918250N and 7919100 (i.e. over 800m long). This anomaly identified an extremely conductive target with a very high time constant of over 30ms. The data suggested that the source is strongest in the south and has a depth to the top of 100m at the north end and up to 200m at the south end. Line 2 was located over the north end of the anomaly on line 1 and determined that the EM source is around 300m wide. The TEM data suggested that the overburden was less than 50m thick. The modelled results are presented below. The figures shows selected late time observed data as black profiles, the model response for the same channels in red and the modelled EM target and proposed drill holes.
Prospect EPM 14406 – Annual and Final Report 07-08 18 Figure 5: TEM Modelling of the Warrior Target
The EM target is modelled as a flat-lying sheet dipping shallowly to the south. The modelled depth to the target agrees with the indication from the CDI (100m at the north end and 200m at the south end). Drill holes were proposed to test this target with holes targeted at the north and southern parts of the anomaly.
Figure 6: Warrior Line 1 TEM profile
Prospect EPM 14406 – Annual and Final Report 07-08 19 Figure 7: Warrior Line 2 TEM profile
6.1.2 Hidden One
Two TEM lines were completed over this strong AEM anomaly. Line 3 was an EW line while Line 4 was a NS line and was used to determine the orientation of the target. An excellent late-time anomaly was observed on both these lines with the strongest response on the NS line having a time constant of about 8ms.The data indicates that the conductive cover of about 50m thick with the buried conductive target located approximately 100m below the surface. A number of different orientations for the target plate proved to be possible. Generally the modeled plates were flat lying at a depth of about 100m, or dipping to the south, with dimensions of 300 - 400m long and 200 - 300m wide. Two of the final models are presented below with the pink plate almost flat lying, while the blue plate dips 30 degrees to the SW.
Prospect EPM 14406 – Annual and Final Report 07-08 20 Figure 8: TEM Modeling of the Hidden One
Figure 9: Hidden One Line 3 TEM profile
Prospect EPM 14406 – Annual and Final Report 07-08 21 Figure 10: Hidden One Line 5 TEM profile
6.1.3 Prospect Bore
One TEM (Line 5) line was completed across the Prospect Bore area. A weak low order AEM anomaly was identified in this area and the line was completed over the area as a previous drill hole had intersected anomalous Ti and vanadium. The ground TEM survey results showed conductive overburden of about 50 - 60m thick over the western half of the line which increases to between 60 - 80m over the eastern half of the line. No ground EM anomaly was identified and it is likely that the AEM feature at Prospect Bore is related to variations in the overburden thickness (i.e. an edge effect).
Figure 11: Prospect Bore Line 4 TEM profile
Prospect EPM 14406 – Annual and Final Report 07-08 22 6.2 Drilling
In September 2006 to October 2006 four RC holes for 756m were drilled at Prospect. Three drill holes were aimed at testing the TEM anomalies with a fourth hole designed to follow up the high grade Ti and V intersected in a historical hole drilled in the early 1980’s. Drill hole parameters are summarised in Table 4 below and the locations of the drill holes with respect to the airborne magnetics is presented on Figure 12. The drill hole logs and photographs of the chip trays are include in the previous annual report submitted to the mines department.
The holes were drilled using a R003 RCD rig from OME Drillers in Charters Towers, using a 5.5 inch hammer. The holes were pre-collared to basement using a blade bit, and then cased off with PVC. The soft nature of the Tertiary sands overlying the basement rocks and the high volumes of water in the holes made them unstable and without casing the holes would have collapsed. One hole RC-002 was abandoned due to adverse ground conditions.
On completion of the drilling the holes were cased with 40mm diameter PVC to enable downhole EM surveys to be undertaken.
Samples were collected every 1m, with 10m composite collected in the Tertiary sands and gravels. When the holes hit basement rocks 2m composites were taken. All the samples were despatched to ALS in Townsville and were assayed for a suite of elements using the ME-MS61 method, PGE’s were also assayed for using the PGM- MS23 method.
Table 5: Drill Hole Locations and Depths. Hole No. Prospect Easting Northing Depth Azimuth Dip Comments (WGS 84) (WGS 84) (m) RC 001 Warrior 628408 7919000 131 352 75 No significant results Hole abandoned-collar RC 002 Warrior 628400 7918490 90 352 75 collapsed RC 002A Warrior 628392 7918513 198 0 90 Hidden RC 003 One 633350 7906460 192 0 90 Prospect RC 004 Bore 631500 7910550 175 0 90
Results from the drilling were disappointing with only minor zones of anomalous geochemistry intersected. In general the holes were mineralised and altered, with pyrite
Prospect EPM 14406 – Annual and Final Report 07-08 23 – pyrrhotite and graphite identified. It is highly likely that the pyrrhotite and graphite alteration was responsible for the strong EM anomalies. Table 6 summarises the best intercepts.
Figure 12: Drill Hole Locations and Airborne Magnetics
Prospect EPM 14406 – Annual and Final Report 07-08 24 Table 6: Assay Results. Hole No. Meters Ag Zn Cu Pt Pd (m) (ppm) (ppm) (ppm) (ppm) (ppm) RC 002 7 2 - 74 1140 RC 002A 124 -126 1.14 1270 128 - 132 0.93 158 -160 1.75 160 -176 1.53 828 RC 003 128 -130 0.98 0.137 0.297 130 -134 1.16 RC 004 130 -138 1.93 138 -140 4.39 1605
6.2.1 Warrior Drilling
RC 001, RC 002 & RC 002A were drilled into the Warrior anomaly. RC 001 was drilled into the northern end, while RC 002A was drilled into the southern end of the anomaly, with the aim of testing its most conductive part. RC 002 was abandoned due to the hole collapsing around the collar due to due to the large amounts of artesian water. RC 002A was drilled 20m north of RC-002. RC 001 & RC 002 were drilled on a 75 degrees angle, however due to adverse ground conditions RC-002A, 003 and 004 were drilled vertically.
Plate 1: Chip trays of RC 002A
All of the Warrior holes intercepted the same geological units. Initially brownish- yellow fine sands and clays to 40-60m, were intersected then black carbonaceous shales to 60 - 70m containing up to 5% pyrite (Py) and pyrrotite (PO) and strongly graphitic,
Prospect EPM 14406 – Annual and Final Report 07-08 25 which were underlain this was a massive grano-diorite which was strongly mineralised and altered with up to 5% Py and 10 % PO with a moderate graphitic content. All of the Warrior holes ended in grano-diorite. It is highly likely that the strong graphite, Py & PO assemblage is responsible for the intense TEM anomaly.
6.2.2 Hidden One
RC 003 was drilled into an intense TEM anomaly located in the southern part of the tenement. The hole reached a depth of 192m. It intersected alluvial brownish-yellow sands and clays with minor rubble at 44m.Underlying this is a black shales containing trace Py. A large quartz vein extended from 48m to114m which also contains trace Py. Below this was a massive porphyritic micro-granite containing phenocrysts of quartz and K-feldspars with minor graphite, Py - PO to 1%.
The weak mineralisation could account for the AEM and TEM anomaly, similar to that at Warrior.
Plate 2: Topography and vegetation of RC 003
Prospect EPM 14406 – Annual and Final Report 07-08 26
6.2.3 Prospect Bore (RC 004)
Hole RC-004 was drilled to test a weak magnetic anomaly where previous drilling intersected a titanium and vanadium rich gabbro. RC-004 intersected a gabbro from 24 - 139m which contained minor epidote alteration with traces of magnetite and Py. Underlying the gabbro is a massive quartzite which contained trace Py. Weak mineralisation occurs near the gabbro – quartzite contact with better results being 4.39ppm Ag and 1605ppm Zn between 138-140m.
The purpose of this hole was to test for anomalous Ti and V oxides, platinoids and possibility Au, which had been detected from previous drilling. No DHEM survey was done on hole RC 004, due to the TEM survey discounting the presence of a conducting body and indicating the variations in overburden resulted in the AEM anomaly.
Plate 3: Chip trays of RC 004
6.3 Downhole EM
On completion of the drilling a down-hole EM (DHEM) was completed. The purpose of the survey was to determine if the drilling had intersected the TEM anomalies. A downhole survey was completed on RC-002A but not on RC-001 and 003 due to
Prospect EPM 14406 – Annual and Final Report 07-08 27 kinking of the PVC when it was lowered into the hole which prevented the downhole EM probe being lowered into the hole.
Results from the DHEM survey indicate that the conductor was intersected in RC-002 and that no off-hole responses were recorded.
Figure 13 shows a positive peak at a depth of around 130-140m which indicates the hole intersected a conductive body with a time constant of over 60-80ms which is extremely high and is consistent with the time-constant from the ground EM data of 50- 60ms.
Figure 13: Depth RC 002A intersected the conductive body.
Prospect EPM 14406 – Annual and Final Report 07-08 28
The in-hole conductor, (shown in blue) models as a flat lying conductor, that was intersected by RC 002A at a depth of about 135m. The target model (shown in red) from the ground EM data was used to site RC 002A.
The DHEM does not support the shallow southerly dip suggested by the ground data but a broad conductive body which is consistent with a thick graphitic grano-diorite unit. There is also no indication of an off-hole source that is more conductive than that intersected by RC 002A. This graphitic rich Py-PO grano-diorite is the EM source.
Figure 14: Size and Shape of EM anomaly
Prospect EPM 14406 – Annual and Final Report 07-08 29 All the assay results, drill logs and ground and EM data are included as appendicis previously submitted to the department and will not be re-submitted with this report.
7.0 Work Completed in the Third Year of Tenure
Work completed in the 2006 – 2007 year of tenure included:
* Petrological analysis of chips from the RC drilling * Reassess EM data * Rehabilitation of drill sites
7.1 Petrological Testwork
A total of four samples from three of the holes drilled at Prospect were sent to Geochempet Services in Maleny for petrographical analysis. The samples were from RC002A, RC003 and RC004. A summary of the results of the analysis are described below and a complete copy of the report is included as Appendix 1 in the annual report submitted to the DME for the previous year of tenure..
7.1.1 RC002A
One sample was collected taken RC002A from a downhole depth of 124-126m RC- 002A for petrology. This corresponded to a sample interval which contained elevated silver (Ag 1.14g/t) and zinc (Zn 0.13%). The petrology report identified the dominant lithology as a medium grained porphyritic biotite granite with assimilated abundant graphitic xenoliths thought to be derived from Proterozoic carbonaceous meta - sediments. The rock shows a moderate degree of phyllitic alteration resulting in completed sericitisation of plagioclase and biotite. The “graphitic granite” also contains minor magnetite and sulphides. It is very likely that the presence of the graphite in the granite is responsible for the intense EM anomaly observed in the airborne, ground and downhole EM surveys.
Prospect EPM 14406 – Annual and Final Report 07-08 30 7.1.2 RC003
A sample for petrological testwork was taken from a downhole interval of 128-130m, this interval recorded anomalous silver (0.95g/t Ag), platinum (0.14g/t Pt) and palladium (0.29g/t Pd). The rock type identified in this hole is very similar to that intersected in RC002A and is a graphitic granite, which would be the source of the EM ground and airborne anomaly.
7.1.3 RC004
RC004 was drilled to test a magnetic high anomaly which had been drill tested by previous explores in the early 1980’s and intersected a titanium and vanadium rich gabbro. Two samples were collected for petrological testwork from this hole, one sample was taken from 40-42m and 128-130m.
The sample collected from 40-42m has been described as a medium grained gabbro with small discrete grains of quartz. The gabbro shows slight deuteric alteration but donesn’t show any signs of mineralisation only moderate titanium levels were recorded i.e. between 2-3% Ti.
The second sample was collected between 128-130m and is described as a micro- gabbro. It shows slightly more alteration (chloritic-epidote calcite and sericite after plagioclase) than the sample taken up hole but only trace pyrite was observed in the hole.
7.2 Conclusions from Petrology Work
The presence of graphitic granite underlying the areas of intense ground and airborne EM anomalism indicates that the source of these anomalies has been tested, and the likelihood that these anomalies are caused by massive sulphide bodies has been disproved and downgrades the prospectively of this area..
The failure of RC004 to intersected titanium and vanadium levels similar to that seen in the historical drilling also downgrades the potential of this project.
Prospect EPM 14406 – Annual and Final Report 07-08 31 7.3 Drill Site Rehabilitation
The four drill sites at the Prospect prospect were rehabilitated in the last year of tenure. All sample bags and rubbish were removed from site and the drill sites were raked over. The drill hole collars were capped and a wooden survey peg was left in the ground to mark the site of the drilling. No further work is required to rehabilitate the sites.
8.0 Work Completed in the Fourth Year of Tenure
No exploration activity was completed on EPM 14406 in the fourth year of tenure. EM and drill hole data was reviewed. It was determined that the RC drilling adequately tested the intense EM anomalies and the likelihood of defining economic mineralisation on the tenement was considered very low. As a result of this work Oresome decided to relinquish the tenement in full.
Prospect EPM 14406 – Annual and Final Report 07-08 32 9.0 Reference
Angus. R. J. August 2006, TEM Survey Results and Proposed Drill Targets for the Prospect Project. RAMA Geoscience-Unpublished report held by Metallica Minerals Ltd.
Angus.R.J. October 2006, DHEM Survey Results for the Prospect Project. RAMA Geoscience-Unpublished report held by Metallica Mineals Ltd.
Binns.J.& Smith.P. January 2006 Annual Report for EPM 14406 Prospect for the First Year of Tenure. 12th December 2004 to the 11th December 2005.
Cole.A. October 2006, Borehole PEM Survey.Outer Rim Exploration Servises- Unpublished report held by Metallica Minerals Ltd.
Humam.M. July-August 2006. Surface Pulse EM Survey.Outer-Rim Exploration Services -Unpublished report held by Metallica Minerals Ltd.
Spring, K.E, August 2007. Petrographic reports on four drill chip samples (RC002A, RC003 and RC004) From Prospect Station, Croydon, Geochempet Unpublished company report for Metallica Minerals.
Wolfgram.P & Sykes.M. November 2005, Fugro Report on the Airborne EM Survey.Unpublished report held by Metallica Minerals Ltd.
Prospect EPM 14406 – Annual and Final Report 07-08 33