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EPM 15526 Mapoon Annual Report & Final Report for the Period Ended 6 November 2010

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EPM 15526 Mapoon Annual Report & Final Report for the Period Ended 6 November 2010 EPM 15526 Mapoon Annual Report & Final Report For the period ended 6 November 2010 Holder: Matilda Zircon Ltd Submitted by: Matilda Zircon Ltd Author: Steve Milner, Simon Coxell Collator: Steve Quinn Date: 4 January 2011 MATILDA ZIRCON LIMITED ABN 52 077 221 7222 PO Box 8116, Subiaco East, WA 6008 Phone: (08) 6389 6400 Facsimile: (08) 6389 6410 Distribution: Queensland Department of Mines & Energy Matilda Zircon Ltd Austwide Mining Title Management Pty Ltd EPM15526, Mapoon, Cape York, Queensland – Annual and Final Report November 2010 Contents 1. Summary 4 2. Introduction 4 3. Cultural Heritage 7 4. Historical exploration 8 5. Geology and Geomorphology 9 6. Exploration completed 2007 - 2010 12 6.1 Discussion 13 6.2 Shell auger drilling 13 6.3 Heavy mineral analyses 15 6.4 Modal analyses of HM 15 7. Gap analysis study 17 8. References 18 APPENDIX I – Historical sampling Pennefather River 19 APPENDIX II – Shell auger drilling logs 21 APPENDIX III – HM results 27 APPENDIX IV – Modal analyses of HM samples 30 APPENDIX V – Gap analysis study 33 Figures Figure 1 – EPM15526 location map 7 Figure 2 - Targets EPM15525 and 15526, Cape York 12 Figure 3 – Sample traverses EPM15525 and EPM15526 14 Figure 4 – South Mapoon (EPM 15526) Shell Auger 16 Keywords Cape York, Weipa, Pennefather River, Janie Creek, Mapoon, Cullen Point, Flinders Camp, shell auger drilling, heavy mineral analysis, modal analysis, zircon, rutile, ilmenite, heavy minerals, gap analysis study. Page 2 of 33 EPM15526, Mapoon, Cape York, Queensland – Annual and Final Report November 2010 ACKNOWLEDGEMENT AND WARRANTY 1. Subject to 2, the tenure holder acknowledges that this report, including the material, information and data incorporated in it, has been made under the direction or control of the State of Queensland (the State) within the meaning of section 176 of the Copyright Act 1968 (Cwth). 2. To the extent that copyright in any material included in this Report is not owned by the State, the tenure holder warrants that it has full legal right and authority to grant, and does hereby grant, to the State, subject to any confidentiality obligation undertaken by the State, the right to do (including to authorise any other person to do) any act in the copyright, including to: use reproduce publish communicate in electronic form to the public, such material, including any data and information included in the material 3. Without limiting the scope of 1 and 2 above, the tenure holder warrants that all relevant authorisations and consents have been obtained for all acts referred to in 1 and 2 above, to ensure that the doing of any of the acts is not unauthorised within the meaning of section 29(6) of the Copyright Act (Cwth). Page 3 of 33 EPM15526, Mapoon, Cape York, Queensland – Annual and Final Report November 2010 1. Summary This annual report covers the third year of activities completed on EPM15526 situated near Mapoon, and approximately 50km north of Weipa, Cape York. Desktop studies were carried out on the results of previous years exploration programs to determine if the mineralisation would support further expenditure. The final report is an analysis of the previous exploration activities on EPM 15526. Exploration carried out includes shell auger drilling, heavy mineral analyses, and modal analyses of heavy mineral samples, reconnaissance and review of previous work. The shell auger drilling programme in 2007-2008 showed that the north-south trending sand ridge between Janie Creek and Pennefather River to be complex geologically comprising different coloured sandy units thought to dip westwards. Low grade mineralisation was located in several holes. On the eastern end of the southern-most line very low grade mineralisation was located over 125m width, where the heavy mineral suite is iron oxide free, comprising about 25% rutile and 18% zircon. This mineralisation is too low grade to be considered of economic interest. At this stage it is of geological interest only. 2. Introduction EPM15526 was granted to Matilda Minerals Ltd (―Matilda‖) on 7th November 2007. In September 2008 Matilda Minerals was placed into receivership due to cash flow problems associated with their Tiwi Island Project. In July 2009 Olympia Resources (now renamed Matilda Zircon Limited) purchased the assets of Matilda Minerals which included all of the granted and ungranted tenements of Matilda Minerals in the Cape York region of Queensland. The EPM runs from the Pennefather River in the south to Cullen Point, 6km north of Mapoon. The EPM is effectively split into two sections by Janie Creek. Access to the section north of Janie Creek is comparatively straight forward using bush tracks running westwards out of Mapoon townsite. Access to the southern section is more difficult with only one track into the EPM. This starts approximately 13.5km south of Mapoon from the main tarmac road and runs almost due west onto the EPM. The track is the access to Flinders Camp [map ref 583486547], but is only passable from about the middle of the dry season due to a bad creek crossing approximately 5.6km west of the main road. The creek Page 4 of 33 EPM15526, Mapoon, Cape York, Queensland – Annual and Final Report November 2010 would require a large culvert to allow better access in the dry season. The access track runs across a prominent stretch of sand and then tracks running north for approximately 2km and south for approximately 6km give reasonable, but limited access. The country on the east side of the sand ridge is fairly open and access is possible with care, although there are no defined tracks. Access to the coastal section is by boat from Janie Creek or the Pennefather River mouth. In the area between Pennefather River and Janie Creek, the EPM comprises four distinctive NNE to SSW-trending geographical areas. From the west these are: 1. Coastal sand dunes – 400m to 600m wide, comprising loose, often shelly sand – Holocene-age 2. Swamp – back dune coastal swamps up to 1km wide 3. Sand ridge – Pleistocene-age: 600m to 1.5km wide, comprising white to orange sand and covered by a mix of open woodland and very thick turkey bush or ―meendy‖ 4. Open savannah leading east to Janie Creek and Turtle Creek, a tributary of the Pennefather River. This area is generally sandy and includes small areas of lateritic (bauxitic?) material. Matilda has agreed with the Traditional Owners and DOGIT trustees not to explore in the areas north of Janie Creek and the coastal dunes and swamps between Janie Creek and Pennefather River, for cultural and environmental reasons. Tenement Owner Date granted Blocks No. EPM15526 Matilda Minerals Ltd 7th November 2007 47 ABN 31 103 651 538 Block Identification Map: MITC & TORR Block Number Sub-blocks MITC 46 k, o, p, t, u, x, y, z MITC 47 a, b, f, g, l MITC 118 c, d, e, g, h, j, m, n, o, q, r, s, v, w, x MITC 189 k, p, t, u MITC 190 a, b, f, g, l, m, q TORR 3431 n, o, p, r, s, t, v, w EPM15526 occurs on the Pennefather River [sheet 7273] and Mapoon [sheet 7274] 1:100,000 topographic survey maps, part of 1:250,000 map SD54-3 Weipa Special and 1:250,000 map SC54-15 Jardine River respectively. Page 5 of 33 EPM15526, Mapoon, Cape York, Queensland – Annual and Final Report November 2010 The Pleistocene-age sand ridge from Pennefather River to Janie Creek is 18km long and presents a heavy mineral target. EPM15526 is prospective for zircon-rutile mineral sand deposits. These minerals were first identified in the area in the 1950s by Enterprise Exploration whilst conducting a search for mineral sand along the Cape York coastline. A small deposit was found at Urquhart Point, 4km south-west of Weipa. The Program of Works for EPM15525 in years 1 to 3 comprises the following: Data compilation and review Hand auger sampling Geological mapping Geophysical survey Aircore drilling Exploration activities carried out by Matilda during the reporting period include: review of historical exploration; cultural heritage; shell auger drilling; and mineralogy. The Program of Works has been complied with for Year 1. An environmental gap analysis study was undertaken for Matilda’s mineral sand tenements in the Weipa area. Page 6 of 33 EPM15526, Mapoon, Cape York, Queensland – Annual and Final Report November 2010 EPM15525 EPM15526 Figure 1 – EPM15526 location map 3. Cultural Heritage An archaeological and cultural heritage survey of part of EPM15526 was carried out in the central part of the sand ridge target area between Janie Creek and Pennefather River, sufficient to allow first pass augering to be completed. The survey comprised walking selected traverses across the sand ridge primarily searching for ―marked‖ trees: none were located. Page 7 of 33 EPM15526, Mapoon, Cape York, Queensland – Annual and Final Report November 2010 4. Historical exploration As far as Matilda can determine, there has been no systematic mineral sand exploration carried out in what is now EPM15526. A.M. & S. Co., under Authority to Prospect No. 37M, in November 1956 carried out a scintillometer survey along the coast using a helicopter. This survey covered the dune sands along the coast from Skardon River, north of Port Musgrave to just south of Archer River. Some anomalies were indicated during the survey and a more detailed scintillometer was planned for 1957. In 1957, the second scintillometer survey was carried out by P.G. Miller, locating a number of points at which higher than normal radioactivity occurred. Approximately 1,050 miles of traversing was completed at a height of from 40 feet to 100 feet above the ground. In 1958 areas of interest were examined on the ground and some sampling was carried out.
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