METALLICA MINERALS LIMITED ABN 45 076 696 092 GPO Box 122, Brisbane QLD 4001 Tel: +61-7 3299 2329 Fax: +61-7 32992329
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METALLICA MINERALS LIMITED ABN 45 076 696 092 GPO Box 122, Brisbane QLD 4001 Tel: +61-7 3299 2329 Fax: +61-7 32992329 Partial Relinquishment Report for EPM 14406 - Prospect NORTH QUEENSLAND HELD BY: ORESOME AUSTRALIA PTY LTD MANAGER: METALLICA MINERALS LIMITED AUTHOR: Patrick Smith 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: March 2006 Prospect EPM 14406 – Partial Relinquishment Report 1 1.0 Summary The Prospect Project (EPM 14406) is located approximately 80 kilometres south of Croydon on Prospect Station, 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 2005. In the first year of tenure Oresome completed a literature search of the Prospect Area and compiled a report on the past exploration within the tenement. The company also flew an Airborne EM survey over the eastern part of the prospect covering a number of magnetic highs identified by two previous airborne magnetic surveys. The survey identified ten EM conductors within the tenement with two considered to be of high priority. As a result of the survey Oresome has decided to relinquish 59 of the 83 sub-blocks which make up the original tenement, Oresome also applied for an additional 17 sub-block (EPM 15206) around the most prospective EM anomalies. This report summarise the work completed by Oresome on the relinquished sub-block which included a literature search, review of previous data and parts of the relinquished area was flown by the Airborne EM survey. Prospect EPM 14406 – Partial Relinquishment Report 2 Table of Content 1.0 Summary................................................................................................................ 2 2.0 Introduction........................................................................................................... 4 2.1 Location, Access and Infrastructure ................................................................... 4 2.2 Climate, Vegetation and Topography................................................................. 4 2.3 Tenure ................................................................................................................. 4 2.4 Previous Tenure.................................................................................................. 6 2.5 Native Title....................................................................................................... 10 2.6 Landholders....................................................................................................... 10 3.0 Geology................................................................................................................. 11 3.1 Regional Setting........................................................................................ 11 3.2 Geology of EPM 14406 ............................................................................ 13 4.0 Previous Exploration .......................................................................................... 16 4.1 Ford, Bacon and Davies.................................................................................... 17 4.2 Strategic Metal Corporation and Minplex Joint Venture.................................. 18 4.3 Strategic Metals Corporation and Golden Plateau Joint Venture ..................... 19 4.4 North Exploration Limited................................................................................ 21 4.5 WMC Limited................................................................................................... 21 5.0 Work Complete by Oresome Australia Pty Ltd in 2004 – 2005 ..................... 24 6.0 References............................................................................................................ 28 Table of Figures Figure 1 Prospect Location Map – Original Tenement – Prior to Relinquishment ...5 Figure 2 EPM 14406 Showing Relinquished and Retained Sub-Blocks ...................7 Figure 3 Basement Geology of EPM 14406 ............................................... … 16 Figure 3 Airborne Magnetic Map.............................................................................20 Figure 4 EPM 14406 Area of the Original EPM Covered by the AEM Survey ......26 Figure 5 EPM 14406 Results of the EPM Survey over the Relinquished area........27 Table of Tables Table 1 List of Sub-Blocks to be Retained ............................................................. 6 Table 2 List of Sub-Blocks to be Relinquished ...................................................... 6 Table 3 Previous Exploration Tenure and Relevant Company Reports ................. 8 Table 4 Landowner Details................................................................................... 10 Table 5 Geological Sequence in the North-Western Georgetown Inlier .............. 12 Table 6 Summary of Drilling completed by Golden Plateau N.L in 1987 ........... 22 Table 7 Summary of Drilling 1971....................................................................... 22 Table 8 PB1 to PB 26 Drilled By the Golden Plateau .......................................... 23 Prospect EPM 14406 – Partial Relinquishment Report 3 2.0 Introduction 2.1 Location, Access and Infrastructure The Prospect Project (EPM 14406) is located on 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 Warigal Creek and the prosect is bisected by numerous shallow branches of these rivers. The whole tenement is covered by deep sandy silty and clay rich topsoils and is subject to flooding during the northern wet season. 2.3 Tenure The tenement was granted on the 12th December 2004 for a period of 5 years, details of the tenement are included in the first annual report for the tenement. The sub-block which have been retained are listed in Table 1 and Table 2 lists those blocks which have been relinquished. Prospect EPM 14406 – Partial Relinquishment Report 4 Figure 1 Prospect Location Map – Original Tenement – Prior to Relinquishment 7,930, 000m N 7,925, 000m N 7,920, 000m N 7,915, 000m N 7,910, 000m N 7,905, 000m N EPM14406 610,000mE 615,000mE 620,000mE 625,000mE 630,000mE 635,000mE 012345 Km 1 :100, 00 0 METALLICA MINERALS LTD Cairns # EPM14406 PROSPECT Townsville Mt Isa ∃ # # Rockhampton # LOCATION MAP ! BRISBANE 0500Km COMPILED B Y P. SMI TH J A N 06 SCA LE 1: 100 ,000 QUEENSLAND FIGURE D R AF TED BY K.J.CORRIE JAN 06 Pr oj . :A GD66 (z one5 6) 1 INDEX MA P REVISED DWG No : Prospect EPM 14406 – Partial Relinquishment Report 5 Table 1 List of Sub-Blocks to be Retained:- 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 Table 2 List of Sub-Blocks to be Relinquished:- Region Block Sub Blocks No NORMANTON 2353 O, P, T, U, Y, Z 6 NORMANTON 2354 L, M, N, Q, R, S, V, W, X 9 NORMANTON 2425 E, K, 2 NORMANTON 2426 A, B, C, D, F, G, H, J, L, M, 22 N, O, Q, R, S, T, U, V,W, X, Y, Z NORMANTON 2498 D, E, K, P 4 NORMANTON 2499 A, B, F, G, L, M,Q, R, 12 S,V,W,X NORMANTON 2571 A, B, C, H 4 TOTALS 59 Figure 2 shows which sub-blocks have been retained and relinquished by Metallica and the new EPM which is under application. 2.4 Previous Tenure Several companies including, Ford, Bacon and Davis, Esso, Chevron, Strategic Minerals and Western Mining Corporation have previously held tenements which cover all or part of what is now EPM 14406. Previous A to P’s and EPM’s over the tenement include A to P 953 (Ford Bacon and Davis), A to P 2872M, (Strategic Minerals), and EPM 10327, Clara River (WMC). A list of previous exploration licences and relevant company reports is presented in table 2 below. Prospect EPM 14406 – Partial Relinquishment Report 6 Figure 2 EPM 14406 Showing Relinquished – Retained and the Additional Sub-Blocks under Application 2,281# 2,282# 2,283# 2,284# 2,285# EPM14406 (Relinquished Portion) YAPPAR 18°40' S R IV E R 2,353# 2,354# 2,355# 2,356# 2,357# o###plmn## t###uqr##s 18°45' S yz###v w##x ### # # R e a b c d EPM14406 IV BORER E R kf##g###hj 2,425# 2,426# 2,427# 2,428# 2,429# lm# ###no qs# r#####t u q r# su##t ###qr 18°50' S vw# ####xyz v# w##x yz # ##vw # d# e# a# bc##de # ##a b #cd # # # # ## # k f gh j EPM15206 2,497# 2,498# 2,499# 2,500# 2,501# p# l# mn# # o# p# q# r##s tu# ##q 18°55' S v# w##x yz # ##v w # ! ProspectProspect a# bc##de# ##a b # h# #j k##fg # 2,569# 2,570# 2,571# 2,572# 2,573# 142°00' E 142°00' 19°00' S 142°10' E 142°10' 142°05' E 142°05' E 142°15' E 142°20' 0246810 Km 1:250,000 METALLICA MINERALS LTD Cairns # EPM14406 - EPM15206 PROSPECT Townsville Mt Isa ∃ # # Rockhampton # SUB BLOCK LOCATION MAP showing ! BRISBANE RELINQUISHMENT EPM14406 0 500Km C OMPILED BY P.SMITH FEB 06 SC ALE 1: 250,000 QUEENSLAND FIGURE DRAFTED BY K.J.CORRIE FEB 06 Proj.:LATLONG (AGD66) INDEX MAP