Relinquishment Report Tenement

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Relinquishment Report Tenement REPORT TYPE: RELINQUISHMENT REPORT TENEMENT: EPM 16584 A part of BOULIA PROJECT including EPMs 16578, 16581, 16582, 16584, 16588, 16590 TITLE: EPM 16584 PARTIAL RELINQUISHMENT REPORT HELD BY: Boulia Operation Pty Limited MANAGER & OPERATOR: AMC Consultants Pty Ltd AUTHOR: AMC Consultants Pty Ltd SUBMITTED BY: ELP & Muddy Boots DATE: 12 December 2012 MAP SHEETS: 1:250,000 SF54-05 Urandangi 1:100,000 6554 Urandangi COMMODITY: Base Metals, Gold, Uranium, Phosphate KEYWORDS: Geophysics, Under Cover, Arunta/Tennant Creek Blocks, Mt Isa Inlier, Georgina Basin DISTRIBUTION: Queensland Department of Natural Resources and Mines (DNRM) Boulia Operation Pty Limited (3) AMC Consultants Pty Ltd CONTENTS SUMMARY ........................................................................................................................ 1 TENURE INFORMATION ................................................................................................. 2 GENERAL AREA INFORMATION .................................................................................... 6 EXPLORATION RATIONALE OF PROJECT AREA ........................................................ 7 GEOLOGICAL MODEL OF RELINQUISHED AREA ........................................................ 8 EXPLORATION ACTIVITIES ............................................................................................ 9 POTENTIAL FOR MINERAL DISCOVERY IN THE RELINQUISHED AREA ................. 12 REFERENCES ............................................................................................................... 13 Figures Figure 1 Boulia Project Tenements including EPM 16584 ........................................... 3 Figure 2 Location Plan and Regional Geology – Boulia Project ................................... 4 Figure 3 EPM 16584 showing sub blocks relinquished in October 2012 ...................... 5 Figure 4 EPM 16584 showing sub blocks relinquished in October 2012 and gravity stations in relinquished sub blocks ................................................... 10 Tables Table 1 Ground Gravity Survey Data from Relinquished sub blocks - DaishSat Pty Ltd, June 2010 ....................................................................................... 11 SUMMARY EPM 16584 is one of six EPMs that form the Boulia Project. AMC Consultants Pty Ltd (AMC) is the operator of the project for tenement holder Boulia Operation Pty Ltd (BO). The purpose of the Boulia Project is metalliferous exploration of the Proterozoic basement below a thick cover of up to 1 km of Early Palaeozoic Georgina Basin sediments and, in places, Mesozoic sediments. In particular, exploration focus is on the strong and significant magnetic highs which warranted the Queensland Department of Mines and Energy (DME) to advertise the project area as three Restricted Areas in 2007. Forty-seven sub blocks were relinquished in October 2012. The area relinquished is considered to lack prospective structures and target areas. Boulia Project EPM 16584 Partial Relinquishment Report 1 TENURE INFORMATION EPM 16584 was granted as one of two tenements to RA 345 advertised by the Queensland Department of Mines and Energy (DME) in 2007. RA’s 340, 344 and 345 were awarded to a Korean Consortium on 28 January 2009. In 2010 the consortium formed tenement holder Boulia Operation Pty Ltd (BO). The three areas contain six tenements, two to each RA, all granted on 28 January 2009 (Figures 1 and 2). The six tenements, which are relatively closely grouped, have been treated as one project area and are referred to as the Boulia Project. The original tenement details for EPM 16584 are as follows: EPM EPM NAME HOLDER SUB-BLOCKS GRANT DATE EXPIRY 16584 Boulia Project Boulia Operation Pty Ltd 100 (306 km2) 28/01/2009 27/01/2014 BIM BLOCK SUB-BLOCKS CLON 2096 a,b,c,d,e,f,g,h,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y,z 2097 a,b,c,d,e,f,g,h,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y,z 2168 a,b,c,d,e,f,g,h,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y,z 2169 a,b,c,d,e,f,g,h,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y,z Total: 100 Sub-Blocks On 11 October 2012 the following forty-seven sub blocks were relinquished from EPM 16584: BIM BLOCK SUB-BLOCKS CLON 2096 a,b, g 2097 a,b,c,d,e,f,g,h,j,k,l,m,n,o,p, r,s,t,u, w,x,y,z 2168 f, l,m, q,r, v,w 2169 b,c,d,e, h,j,k, n,o,p, t,u, y,z Total: 47 Sub-Blocks After this relinquishment, EPM 16584 consists of the following sub-blocks: BIM BLOCK SUB-BLOCKS CLON 2096 c,d,e,f, h,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y,z 2097 q, v 2168 a,b,c,d,e, g,h,j,k, n,o,p ,s,t,u, x,y,z 2169 a, f,g, l,m, q,r,s, v,w,x Total: 53 Sub-Blocks. Figure 3 shows the location of EPM 16584 showing the original tenure and the relinquished sub blocks. The forty-seven relinquished sub blocks were held for 3 years and 9 months. Boulia Project EPM 16584 Partial Relinquishment Report 2 Figure 1 Boulia Project Tenements including EPM 16584 Boulia Project EPM 16584 Partial Relinquishment Report 3 Figure 2 Location Plan and Regional Geology – Boulia Project Boulia Project EPM 16584 Partial Relinquishment Report 4 Figure 3 EPM 16584 showing sub blocks relinquished in October 2012 Boulia Project EPM 16584 Partial Relinquishment Report 5 GENERAL AREA INFORMATION The Boulia Project area including EPM 16584 is located approximately 190 km south- southwest of Mt Isa in northwest Queensland. The project and tenement lie within the Urandangi (SF54-5) 1:250,000 and Urandangi (6554) 1:100,000 sheets. EPM 16584 lies approximately 120 km south-southeast of Urandangi, a small outback town near the Northern Territory border (Figure 1). The physiography of the Boulia Project area and EPM 16584 is dominated by the long graded flood plains of the Georgina River and its tributaries. For the most part, the area consists of featureless “downs” (treeless plains). Braided streams and channels are widespread across the tenement. Land use is beef cattle grazing on native pastures. Access within EPM 16584 is via the Donohue Highway west from Boulia via Glenormiston then by local property and stock tracks on Glenormiston and Roxborough Downs stations. Access from the north is via the South Urandangi and Linda Downs roads then by local property and stock tracks. Boulia Project EPM 16584 Partial Relinquishment Report 6 EXPLORATION RATIONALE OF PROJECT AREA The overriding rationale for applying for the EPMs was based on unexplored extensions of the Mt Isa Inlier and northwest Queensland Mineral Province under deep cover. The exploration rationale is one of geophysical targets under deep cover (>600 m). Whilst extensions of the Mt Isa Inlier are still invoked, more recent interpretation suggests the tenements lie juxtaposed to the older Arunta/Tennant Creek Blocks which extend into Queensland from the Northern Territory. Boulia Project EPM 16584 Partial Relinquishment Report 7 GEOLOGICAL MODEL OF RELINQUISHED AREA The geology of the region incorporates the Neoproterozoic to early Palaeozoic Georgina Basin, a large intracratonic basin flanking the western and southwestern margins of the Proterozoic Mount Isa Inlier (Ambrose et al 2001, Figure 2). In the Boulia Project area the Georgina Basin thickens and overlies the Mt Isa Inlier and other terranes, and is generally greater than 1,000 m thick. Latest published geology available is the Urandangi – 4 Mile Geological Series, (Department of Natural Development, Bureau of Mineral Resources, Geology and Geophysics, 1959). The basin geology comprises mainly Cambrian to Middle Ordovician marine sedimentary rocks, consisting primarily of marine carbonate rocks with minor sandstone and siltstone. Minor to moderate folding and faulting has deformed the basin. The thickness of basin sediments overlying the older basement rocks is inferred to be variable, as a result of irregular basement topography at the time of formation and sedimentation of the Georgina Basin. The Georgina Basin is more widespread and better known on the Northern Territory side of the Queensland border. Recent high quality aeromagnetics, flown mainly by the DME since 2000, and gravity data sets acquired by DME have allowed semi-quantitative analysis and interpretation of the underlying basement geology below the younger Georgina Basin. As there are no Proterozoic outcrops in the area and no drillholes that penetrate Proterozoic rocks, the interpretation is conjectural and based very much on assumptions as to what has caused various magnetic and gravity patterns. The interpretation is further hindered by the substantial thickness of post-Proterozoic cover sediments which degrades both the magnetic and gravity responses. Correspondingly, the stratigraphic details for this part of the region have not been formalised. The exploration rationale is to test geophysical targets under deep cover (>600 m). The six EPMs were originally reserved by the Queensland DME to cover three areas of perceived mineralisation potential – two large magnetic/gravity complexes in the north and a series of structurally-related magnetic/gravity anomalies along the southern two EPMs. Boulia Project EPM 16584 Partial Relinquishment Report 8 EXPLORATION ACTIVITIES Geophysical reprocessing and interpretation of the Project area by GeoDiscovery Group occurred in Year 1. Following this work and geological interpretation, G Mackee and N McLean of GeoDiscovery Group produced a report on geophysical and geological targets for the Boulia Project in March 2010 (Mackee & McLean 2010). The report includes magnetic inversion modelling with four representative traverses covering the north, central, and south portions of the Project area selected for forward modelling of the relevant magnetic profiles. A target prioritisation process determined areas to be covered by a ground gravity survey This survey, comprising eleven lines for 106.4 km and 543 stations with a station spacing of 200 m, was carried out by South Australian geophysical contracting company DaishSat Pty Ltd from 9-19 June 2010, Year 2 of the tenure. None of the sub blocks which are the subject of this report contained targets. Two of the relinquished sub blocks contained gravity stations (Figure 4 and Table 1). The gravity data obtained in this sub block was of a background level and no anomalies were detected within the relinquished area.
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