TI N M I N ES LI M I TED
EPM 15611
‘LYND RIVER’ QUEENSLAND
PARTIAL RELINQUISHMENT REPORT For
12 SUBBLOCKS of EPM 15611 ‘LYND RIVER’ PROJECT
FINAL REHABILITATION REPORT AND ENVIRONMENTAL AUDIT EA MIC200720208
FOR THE PERIOD ENDED 20th September 2010
Prepared by: John Sainsbury Project Manager
Submitted by: John Sainsbury Project manager
Cairns April 2010
CONSOLIDATED TIN MINES LIMITED Page 1 of 12 ABN 57 126 635 606 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870. Ph (07) 4032 3319 – Fax (07) 4027 9429 Email: [email protected]
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CONTENTS
1. Introduction ...... 3
2. Tenement Location & Access ...... 3
3. Regional Geology ...... 4
4. Area to be Relinquished ...... 6
5. Historical Exploration ...... 8
6. Company Exploration Conducted in Relinquished Area ...... 9
7. Rehabilitation Details ...... 10
8. Environmental Audit ...... 11
9. References ...... 12
10. Appendix ...... 12
FIGURES
Figure 1 EPM15611 ‘Lynd River’ Area Overview Figure 2 EPM 15611 ‘Lynd River’ Regional Geology Figure 3 EPM15611 showing sub-blocks to be relinquished Figure 4 EPM15611 ‘Lynd River’ Area Overview after relinquishment Figure 5 Alberta Regional alluvial tin sampling (result as kg SnO2/cubic metre) Figure 6 Alberta Regional alluvial tin sampling showing relinquished sub-blocks
Appendix
Appendix 1 Lynd River Sample Site Results within EPM15611
CONSOLIDATED TIN MINES LIMITED Page 2 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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1. Introduction
Consolidated Tin Mines Limited (CSD, the Company) is exploring for tin mineralisation in north east Queensland. The Company was granted EPM15611 on the 21 September 2007 to allow for the exploration of alluvial tin mineralisation that lies adjacent to the Lynd River.
2. Tenement Location & Access
The tenement contains 25 sub-blocks. Several granted mining leases are within the tenement and these areas are held by other parties. These areas are excluded from the EPM tenement.
The tenement is located 250 kilometres south west of Cairns. The nearest town is Chillagoe, located 120 kilometres north, north east from the project area.
The background activity is cattle grazing, and the EPM is wholly contained within Bolwarra Station. Access to the project area is via station tracks. The project area has had irregular alluvial mining since the 1970s, and reasonable tracks and freshwater dams are in place.
The tenement description is given below, and location is given in Figure 1
Block Sub-Blocks
Townsville 1225 N, O, P, S, T, U, V, W, X, Y Townsville 1297 A, B, G, H, J, K, N, O, P, S, T, U Normanton 1296 T, U, Y, Z
Figure 1: EPM15611 ‘Lynd River’ Area Overview
143°58'0"E 144°0'0"E 144°2'0"E 144°4'0"E 144°6'0"E 144°8'0"E
CAIRNS REEK PINNACLE C 17°28'0"S
EPM15611 'Lynd River' 17°30'0"S
LYND RIVER
17°32'0"S TI N M I N ES LI M I TED
EPM15611 'Lynd River'
EPM15611 'Lynd River'
Datum: GDA 94 Scale: 1:80,000 Date: March 2010 km 02.551.25 Drawn by: Mining Services (NQ) Pty Ltd 17°34'0"S
CONSOLIDATED TIN MINES LIMITED Page 3 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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3. Regional Geology
Basement geology within the tenement area is McDevitt Metamorphics, a multiply deformed greenschist to amphibolite metamorphosed sequence of metapelites and quartose meta arenites. Mafic intrusions are common and consist of amphibolites and metadolerites.
The formation is approximate 1650 million years old, based on analogies to dated Etheridge Group metasediments.
The McDevitt Metamorphics are considered the lower metamorphic grade equivalent to the Dargalong Metamorphics, which are located to the north of the tenement area.
The McDevitt Metamorphics, Dargalong Metamorphics and Etheridge Group metasediments to the south of the tenement area form the Palaeoproterozoic aged craton, of north east Queensland, against which, and on which the Paleozoic, Mesozioc and Tertiary aged mineralisations of the Townsville-Cairns hinterland are located. This cratonisation occurred approximately 1500 million ago.
Tectonic activity against the eastern edge of the craton, in the Cairns hinterland, began with the development of the Hodgkinson Basin, an early to mid Paleozoic back arc basin. The basin filled with sediment eroded from the craton. The basin closed, with significant thrusting and structural shortening in mid Devonian times. The basin-craton edge is now marked by the large scale Palmerville Fault. This feature is to the east of the tenement area. Intrusive Silurian age granitoid plutons, part of the Blackmans Gap Complex occur within the craton in the tenement area.
Areally and volumetrically significant Carboniferous and Permian acid intrusive and extrusive activity occurred in the Cairns hinterland, the general trend of intrusion and extrusive volcanics being of a parallel trend to the North West strike of the Palmerville fault. This igneous event was marked not just location along the Palmerville Fault, but by significant penetration into the craton, suggesting the pervasive structural dislocation of the craton, and the broad depth source for the ignous rocks. To be expected in such a setting, intrusive rocks have multiple intrusive natures. The setting could also be expected to generate ore mineralisation of a range of elements, and Permo- Carboniferous aged deposits of gold, tin, tungsten copper, zinc, lead, silver,tungsten and molybdenum occur within or adjacent to intrusive.
The tin mineral, cassiterite, is stable in the weathering environment, and is also a mineral with high specific gravity. These mineral properties favour concentration of cassiterite into alluvial systems that develop around eroding tin bearing intrusions. The Carboniferous aged McCord Granite is located to the north east of the tenement area adjacent to Tate River, and contributes cassiterite to local streams and the larger Tate River. Hardrock tin deposits are located to the east of, and upstream of the Company tenement, in the Lynd River catchment.
The Cairns hinterland Paleozoic basement was then covered by large Mesozoic and Tertiary marine ingress and regress events, and the sedimentation is of generally flat lying marine and fluviatile sandstones. These sediments have been gradually eroded to expose the basement rocks.
Within the tenement area, late Mesozoic to early Tertiary aged, unconsolidated coarse gravels to sandstones ocur as broad ridges on top of the basement. These ridges are believed to be the remnants of large fluviatile systems, that were draining westward through the broad north east Queensland. These Tertiary rivers drained tin mineralised granites, and cassiterite became concentrated into the river sediment. Current river systems do not overall parallel these Tertiary rivers. In the northern edge of the tenement area, a broad ridge, called the Pinnacle Creek Sandridge (namedafter a local creek), is believed to be the fluviatile sediment of a river that flowed south west and called the Ancestral Tate River. In the southern extent of the tenement, a broad ridge, called the Kangaroo Sandridge, is believed to be the fluviatile sediment of a river, called the Ancestral Lynd River. CONSOLIDATED TIN MINES LIMITED Page 4 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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Both sand ridges are 5 to 20 metre high above the general flat terrain, and several hundred metres wide.
Current drainages eroding these sandridges have been mined for cassiterite using alluvial recovery methods. The sandridge itself, in limited areas has been mined for the cassiterite and recovered by alluvial methods.
Figure 2: EPM 15611 ‘Lynd River’ Regional Geology
143°56'0"E 143°58'0"E 144°0'0"E 144°2'0"E 144°4'0"E 144°6'0"E 144°8'0"E 144°10'0"E
MIXED MAFITES AND FELSITES (MAINLY VOLCANICS)
17°26'0"S P POORLY IN CONSOLIDATED NA CL SEDIMENTS ARENITE E C RE EK GRANITOID METAMORPHIC ROCK
GRANITOID 17°28'0"S MIXED MAFITES AND FELSITES (MAINLY VOLCANICS)
LY ND RI VER EPM15611 'Lynd River' 17°30'0"S
POORLY CONSOLIDATED SEDIMENTS
R IVE D R LYN ALLUVIUM 17°32'0"S MIXED MAFITES AND FELSITES (MAINLY METAMORPHIC ROCK ARENITE VOLCANICS) TI N M I N ES LI M I TED
EPM15611 'Lynd River' Carpentaria Karumba Basins Legend GRANITOID 250k Regional Geology DOMINANT ROCK TYPE Legend ALLUVIUM ARENITE 17°34'0"S ARENITE ' EPM15611 'Lynd River GRANITE Datum: GDA 94 METAMORPHIC ROCK Scale: 1:100,000 MIXED MAFITES AND FELSITES SEDIMENTARY ROCK Date: March 2010 POORLY CONSOLIDATED SEDIMENTS km 02.551.25 SEDIMENTARY ROCK Drawn by: Mining Services (NQ) Pty Ltd
CONSOLIDATED TIN MINES LIMITED Page 5 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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4. Area to be Relinquished
The area to be relinquished consists of 12 sub blocks and is:
Block Sub-Blocks
Townsville 1225 U, V, W Townsville 1297 O, P, S, T, U Normanton 1296 T, U, Y, Z
Figure 3: EPM15611 showing sub-blocks to be relinquished
143°58'0"E 144°0'0"E 144°2'0"E 144°4'0"E 144°6'0"E 144°8'0"E
P
TOWN TOWN TOWN 1225N 1225O 1225P 17°28'0"S NORM NORM TOWN TOWN TOWN 1296T 1296U 1225S 1225T 1225U
NORM NORM TOWN TOWN TOWN TOWN 1296Y 1296Z 1225V 1225W 1225X 1225Y 17°30'0"S TOWN TOWN 1297A 1297B
LYND RIVER
TOWN TOWN TOWN 1297G 1297J 1297K 17°32'0"S TOWN TOWN TOWN 1297N 1297O 1297P
TOWN TOWN TOWN 'EPM15611 'Lynd River 1297S 1297T 1297U Subblocks to be relinquished Datum: GDA 94 Scale: 1:80,000
17°34'0"S Date: March 2010 km 02.551.25
CONSOLIDATED TIN MINES LIMITED Page 6 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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Figure 4: EPM15611 ‘Lynd River’ Area Overview after relinquishment
143°58'0"E 144°0'0"E 144°2'0"E 144°4'0"E 144°6'0"E
TOWN TOWN TOWN 1225N 1225O 1225P 17°28'0"S
TOWN TOWN 1225S 1225T
TOWN TOWN 1225X 1225Y 17°30'0"S
TOWN TOWN 1297A 1297B
LYND RIVER
TOWN TOWN TOWN 1297G 1297J 1297K 17°32'0"S
TOWN 1297N 'EPM15611 'Lynd River Datum: GDA 94 Scale: 1:65,000 Date: March 2010 km 0120.5
CONSOLIDATED TIN MINES LIMITED Page 7 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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5. Historical Exploration
The Company undertook a review of past exploration and collated the information.
The Kangaroo Creek alluvial tin operation is a recent find, first worked in the early 1970s. There was active mining through 1983-1985 by Alberta Mines Pty Ltd, a public company floated on these alluvial tin deposits. A small scale miner, Max Eden, mined through 1987-88. Watson and Howlett, again a small scale mining syndicate, mined the alluvials through 2005-2008.
More regional work was completed by Renison GoldFields (RGC), and Nicron Resources.
Reported exploration work is within open file company reports of Alberta Resources through the early to mid 1980s (CRs 14020, 14587, 14588, 15747), the Eden syndicate (CRs 20691, 22005) and RGC Exploration (CRs 22493, 2355, 22860).
The sandridges carry concentrations of tin, as well as ilmenite, monazite, zircon and garnet, and minor gold. The 1980s alluvial tin production has come from the Kangaroo Sandridge and, within areas, in part, now within the CSD tenement. This production has been recorded by Davis (1991- CR 22860).
A small mining syndicate, the Fitzgerald family, produced about 10 tonne of tin concentrate within the western extent of the Kangaroo Creek Sandridge. The Fitzgerald mine area and extensions are within the CSD tenement area.
Alberta Resources produced 321.6 tonne of tin concentrate from recent alluvium within Kangaroo Creek, through 1983-1985, but mining of the Kangaroo Creek Sandridge did occur to a limited extent. Davis commented that an unknown volume was treated for this concentrate amount but it was likely that between 320,000 and 500,000 cubic metres was treated. Alberta started their alluvial mining operation based on a resource of 1.6 M bcm at 0.9 kg SnO2 /bcm.
Eden Exploration, a small syndicate, private mining company mined the recent alluvium in the upper reaches of Kangaroo Creek through 1987-1988, and then mined into the Kangaroo Creek Sandridge. Eden produced 69.8 tonne of tin concentrate from a likely 75,000 cubic metres of treated wash. The Kangaroo Sandridge mining produced a high tin grade wash material (better than 1 kgSnO2/cubic metre).
Watson and Howlett, restarted alluvial on Eden mining leases through 2005-2007, and produced approximately 70 tonne of clean tin concentrate from an approximate 35,000 cubic metres of wash.
The Eden and Watson/Howlett mining areas are outside the CSD tenement and within mining leases but a large length of the Kangaroo Sandridge extends both east and west from the mining leases into the CSD tenement.
The Company tenement covers a section of a sandridge within which a current creek, Kangaroo Creek, has incised a channel. The sandridge is called the Kangaroo Creek Sandridge. Another sandridge, the Boomerang Sandridge, is also within the Company tenement. It is likely that the Kangaroo Sandridge is a part of an ancestral Lynd River, and the other sandridge was ancestral tributaries.
These sandridges lie to the north of the Lynd River and central to the tenements. To the south of the Lynd River and the west of the tenement area north of the Lynd River, basement rock is the Paleoproterozoic metasediments with no development of sandridge feature.
CONSOLIDATED TIN MINES LIMITED Page 8 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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6. Company Exploration Conducted in Relinquished Area
The 12 relinquished areas are subblocks south of the Lynd River, and in the west of the tenement area
Alberta explored the creek systems to the south of the Lynd River, and results from sampling within the Company tenement are presented in the following figure. While the alluvium within the creek systems south of the Lynd River carries economic cassiterite grades, the volume of wash and the high coarse gravel content, suggested no economic development would occur.
Figure 5: Alberta Regional alluvial tin sampling within EPM15611 (result as kg SnO2/cubic metre)
143°58'0"E 144°0'0"E 144°2'0"E 144°4'0"E 144°6'0"E
17°28'0"S 50 (0.3) ML5136 D
ML20557
ML20555 16 (8.36)
D ML20554 59 (0.07) D EPM15611 'Lynd River' 17 (3.69)
58 (0.06) D D
17°30'0"S 2 (0.81) 1 (0.8) 20 (0.69) ML20556 3 (0.81) D ML20559 D D D 60 (4) 9 (2.43) D
ML5134 41 (0) D 44 (1.46) 83 (0.5) ML5115 10 (0.25) ML5135 D 86 (0.51)
87 (1) D D D
17°32'0"S D D 43 (1.08) D D D D 46 (2.86) D
45 (1.88)
D 42 (1.06) 90 (0.25) D 11 (0.25) 89 (0.25) 88 (1.5)
17°34'0"S *See Appendix 1 for sample site results
CONSOLIDATED TIN MINES LIMITED Page 9 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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Figure 6: Alberta Regional Alluvial tin sampling within EPM15611 showing relinquished sub-blocks
143°58'0"E 144°0'0"E 144°2'0"E 144°4'0"E 144°6'0"E 144°8'0"E
D
TOWN TOWN TOWN D D 1225N D D1225O 1225P D D D
17°28'0"S D NORM NORM TOWN TOWN TOWN 1296T 1296U 1225S 1225T 1225U
D NORM NORM TOWN TOWN TOWN DTOWN 1296Y 1296Z 1225V 1225W 1225X 1225Y
D D 17°30'0"S TOWN TOWN 1297A DD 1297B D D D LYND RIVER D TOWN TOWN TOWN 1297G 1297J 1297K D
D D D
17°32'0"S D TOWN D TOWN TOWN D D D D 1297N D 1297O 1297P
D Sample Sites D D TOWN TOWN TOWN 'EPM15611 'Lynd River 1297S 1297T 1297U Subblocks to be relinquished Datum: GDA 94 Scale: 1:65,000 17°34'0"S Date: March 2010 km 02.551.25
Because of the lack of sandridge development in the western portion of the tenement, it was unlikely that any alluvial deposit would be found.
Following the review of past exploration, the Company does not believe there exists an alluvial tin deposit within 12 of the 25 subblocks originally granted to the Comapny, and as such relinquished that twelve.
7. Rehabilitation Details
Requirements of Code of Practice:
• The landholder was advised prior to entry on the land and commencement of all exploration programs. • Communication with the landholder was initiated prior to entry to the property, and for traversing the property. • The landholder was advised that personnel would be camping on site. • Vehicles and machinery were kept to a minimum, and comprised: o 1 of 4WD vehicles • No fires were lit on site. • All domestic refuse was removed from site.
CONSOLIDATED TIN MINES LIMITED Page 10 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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8. Environmental Audit
8.1 Introduction
The tenement, EPM 15611, was applied for in the Lynd River region to prospect for alluvial tin mineralisation. The prospecting programmes as outlined in the application, entailed relatively short - term investigation of the areas selected, based on collation of existing data and geophysical studies. The current exploration was carried out.
8.2 Background Details
Project Name: Lynd River Tenure Number: EPM15611
Lot / Plan Number Holder L2/BW17 St Elmo Pastoral Group Pty Ltd Lot 616 Flinders Highway, Julia Creek 4823
Auditor: John Sainsbury
Auditor’s Credentials: Project Manager. 30 years experience in the mining industry involving underground, surface and alluvial mining, mineral exploration, project assessment and management which includes environmental considerations up to Impact Statements, Mine Plan preparations and Plans of Operation and rehabilitation considerations of various projects in north Queensland.
Relationship to Tenement Holder: Holder
Date of Audit: April 2010
Method of Audit: On site supervision and inspection during prospecting program as Supervisor.
8.3 Audit
The author has developed rehabilitation actions and targets over many years of involvement on similar exploration projects. As supervisor of the project, actions relevant to the Code of Practice were followed throughout the prospecting programs. In the author’s opinion, all relevant rehabilitation stated in the proposed programs, followed in the programs and described in the attached Rehabilitation Report were followed.
8.4 Security Refund Determination The estimated cost of residual maintenance is nil.
8.5 Conclusion The author finds no inconsistencies between the Final Rehabilitation Report, the stated aims of the rehabilitation program and the Code of Practice.
CONSOLIDATED TIN MINES LIMITED Page 11 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319
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9. References
References
Qld DME, 2000 1:100.000 Ravenshoe Sheet 7962 First Edition
Company Reports Alberta Resources CRs 14020, 14587, 14588, 15747 Eden Syndicate CRs 20691, 22005 RGC Exploration CRs 22493, 2355, 22860
Explanatory Notes
Bultitude R.J. 1999 Cairns region, North Queensland Queensland Mining and Energy Review Series Garrad, T.D. & Geology, Mining History and Mineralisation of the Hodgkinson and Kennedy Provinces
10. Appendix
Appendix 1: Lynd River Sample Site Results within EPM15611
Sample Number Sn Assay Sample Number Sn Assay 89 0.25 46 2.86 90 0.25 45 1.88 50 0.3 88 1.5 16 8.36 11 0.25 17 3.69 42 1.06 75 0.01 86 0.51 14 1.53 87 1 73 0.27 83 0.5 15 1.44 41 0 76 0.01 2 0.81 74 0.02 3 0.81 13 1.41 20 0.69 54 0.04 1 0.8 44 1.46 9 2.43 43 1.08 58 0.06 10 0.25 59 0.07
CONSOLIDATED TIN MINES LIMITED Page 12 of 12 ACN: 126 634 606 395 Lake Street North Cairns Qld 4870 Ph. (07) 4032 3319