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Elliott Project ELLIOTT PROJECT NORTHERN TERRITORY TENEMENTS EL27186, EL27187, EL27188, EL27189, EL27190 AND EL27544 COMBINED ANNUAL EXPLORATION REPORT FOR THE PERIOD ENDING 26 TH OCTOBER 2010 Submitted by: VALE Exploration Pty Ltd ABN 87 127 080 219 ACN 127 080 219 96-98 Outram Street WEST PERTH WA 6005 Compiled by: Paula Blair, Brenton Siggs & David Burt Date: 8th November 2010 Distribution: NT Department of Regional Development, Primary Industry, Fisheries and Resources (NT DoR) VALE Library VALE Exploration Pty Ltd Elliott Project Annual Exploration Report 2010 Table of Contents Executive Summary ......................................................................................................................... 1 1 Introduction ............................................................................................................................. 2 1.1 Location and Access ...................................................................................................... 2 1.2 Tenement Details ........................................................................................................... 2 1.3 Native Title .................................................................................................................... 4 1.4 Historical, Aboriginal, Heritage Sites ............................................................................ 4 1.5 Climate and Hydrology.................................................................................................. 7 1.6 Land Area Type ............................................................................................................. 7 1.6.1 Flora .......................................................................................................................... 8 1.6.2 Fauna ....................................................................................................................... 10 2 Regional Geology .................................................................................................................. 12 3 Local Geology ....................................................................................................................... 14 4 Previous Exploration ............................................................................................................. 14 5 Current Exploration .............................................................................................................. 16 5.1 Water Bore Analyses ................................................................................................... 17 5.2 Mapping and Rockchip Sampling................................................................................ 19 5.3 Gravity Survey............................................................................................................. 19 5.4 RC Drilling................................................................................................................... 21 5.5 Diamond Core Sampling.............................................................................................. 23 5.6 New Disturbances ........................................................................................................ 23 5.7 Rehabilitation Completed ............................................................................................ 23 6 References ............................................................................................................................. 25 List of Figures Figure 1: Elliott Tenement Location Plan ...................................................................................... 3 Figure 2: Elliott AAPA Plan........................................................................................................... 6 Figure 3: Elliott Project – Vegetation Plan..................................................................................... 9 Figure 4: Elliott Project – Fauna Plan .......................................................................................... 11 Figure 5: Schematic west to east stratigraphic transect across Wiso and Georgina (Khan et al., 2007).............................................................................................................................................. 12 Figure 6: Elliott Project – Regional Geology Plan....................................................................... 13 Figure 7: Elliott Project – Water Bore Plan.................................................................................. 18 Figure 8: Elliott Project – Gravity Plan with Drill Holes............................................................. 20 Figure 9: Elliott Project – RC Drill-Hole Plan ............................................................................. 22 Figure 10: Elliott Project – Historic Diamond Drilling Plan........................................................ 24 List of Appendices APPENDIX 1: Aboriginal Areas Protection Authority Certificate APPENDIX 2: Water Bore Analysis Report APPENDIX 3: Portable XRF Data – Water Bore Chip Analysis APPENDIX 4: Geology Mapping and Rockchip Plans APPENDIX 5: Rockchips – Assay Laboratory Results APPENDIX 6: Rockchips – Niton XRF Field Results APPENDIX 7: Drill Hole Plans and Cross Sections APPENDIX 8: Drill Hole data – Digital Collar, Survey, Assay, Lithology APPENDIX 9: Elliot Weeds Report APPENDIX 10: Pdf Files of Report Figures APPENDIX 11: Gravity Modelling Report Page i VALE Exploration Pty Ltd Elliott Project Annual Exploration Report 2010 Executive Summary Exploration for phosphate at the Elliot (Lakewoods) Project consisted of field mapping, rock-chip sampling (92 samples) and reconnaissance Reverse Circulation (RC) drilling (VGRC022-031, 10 holes, 1326 m, 442 composite drill samples) during the reporting period. An open file literature review, acquisition and reprocessing of geophysical data (gravity survey), an AAPA register search, acquisition of NRETAS environmental data, Mining Management Plan compilation and XRF analysis of historic water bore chips (522 samples) were also completed. Surface mapping was completed to gain a greater understanding of the lithological and structural controls within the project area. A rock-chip sampling program was completed during the mapping program. No significant rock-chip results were recorded. Assay results from holes VGRC022-031 are pending and will be presented in the next reporting period. In addition, 6 historic NQ diamond drill holes (163.0 m) were logged at the NTGS, Darwin and 8 samples cut and submitted to ALS for multielement analyses. No anomalous phosphate values were recorded in these core samples. Further drill targeting using recent detailed surface mapping, geophysical interpretation and modelling (aeromagnetics and gravity) and drill results when received is planned for the 2010-2011 reporting period. Page 1 VALE Exploration Pty Ltd Elliott Project Annual Exploration Report 2010 1 Introduction 1.1 Location and Access The Elliott Project is located approximately 6 km west of the historic town of Newcastle Waters and 13 km west of Elliott. Mapping and drilling covered only the south-eastern part of the Elliot Project (tenements - EL27187, EL27189 and EL27190 known as Lakewoods). The project area can be accessed via the Stuart Highway, north of Tennant Creek, thence via station tracks to the south and north of Lake Woods. The project consists of contiguous tenements located on the Beetaloo SE53-06, Helen Springs SE53- 10, Newcastle Waters SE53-05 and South Lakewood SE53-00 1:250,000 and Elliott 5662, Helen 5561, Kekwick 5561, Lakewood 5562, Murranji 5463 and Newcastle Waters 5563 1:100,000 map sheets straddling parts of Murranjai (PPL1074), Newcastle Waters (PPL 947), Powell Creek (PPL948), and Hayfield (PPL1135) stations. 1.2 Tenement Details The Elliott Project is comprised of six contiguous tenements held by Vale Australia EA Pty Ltd and operated by Vale Exploration Pty under Authorisation 0558-02 (Table 1). The gas pipeline transects EL27187 and EL27190. Table 1: Elliott Project Tenement Details Tenement Area Area Date of Date of Expenditure Holder Number (Blocks) (km 2) Grant Expiry (Year 1) EL27186 Vale Australia EA Pty Ltd 500 1616.35 26/10/2009 25/10/2015 88,000.00 EL27187 Vale Australia EA Pty Ltd 404 1616 23/10/2009 22/10/2015 70,000.00 EL27188 Vale Australia EA Pty Ltd 500 1589.12 26/10/2009 25/10/2015 88,000.00 EL27189 Vale Australia EA Pty Ltd 322 1025.3 26/10/2009 25/10/2015 88,000.00 EL27190 Vale Australia EA Pty Ltd 315 1014 23/10/2009 22/10/2015 70,000.00 EL27544 Vale Australia EA Pty Ltd 313 919.53 04/03/2010 03/03/2016 52.000.00 Total Expenditure Commitment: $456,000.00 Exclusions (from EL27544) include all land vested in the Commonwealth, all radio telecommunication repeater sites and Reservation from Occupation 24350 NT Portions 5027 and 5026. 1 The area covered by EL27187 was reduced by Vale prior to grant to exclude the Longreach Waterhole Protected Area (which is just outside of and abuts the east of EL27187) from the tenement. 1 From EL27544 Licence Document Page 2 VALE Exploration Pty Ltd Elliott Project Annual Exploration Report 2010 Figure 1: Elliott Tenement Location Plan EL27544 315000 380000 445000 8110000 8110000 BEETALOO EL27186 Newcastle Waters !NEWCASTLE WATERS ELLIOTT UCHARONIDGE 8045000 8045000 EL27187 MUNGABROOM EL27189 EL27190 EL27614 RENNER SPRINGS 7980000 7980000 HELEN SPRINGS MUCKATY BANKA BANKA DARWIN Nhulunbuy 7915000 ! 7915000 ! Pine Creek ! Katherine ! Wyndham ! ! KUNUNURRA Daly Waters Borroloola ! ! Newcastle Waters ! TENNANT
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