DEPARTMENT OF RESOURCES Mineral Titles Act and Regulations INFORMATION BULLETIN EXPLORATION RATIONALE PROPOSED WORK PROGRAMS & EXPENDITURE This information bulletin should be read prior to lodging applications and renewals for mineral titles. Attachments provided should be clearly referenced to each category outlined on the approved form and be accompanied with supporting documents such as maps and diagrams where necessary. All information bulletins should be read and guidelines adhered to prior to lodging applications. Exploration Rationale Details of your exploration rationale should be included in your application for exploration licences and associated mineral authorities for exploration. Details should include (where applicable): An exploration model (ie genetic, conceptual or empirical targeting data) to be used in the exploration program Prioritisation of area within the application area Location of any walk-up targets Location of any contiguous or related applications Proposed timing of events. Listed below are some examples Example 1 The primary target is roll-front/unconformity-style uranium associated with the basal sandstone of the McArthur Basin where it overlies the uraniferous Chilli Granite. This is believed to be at depths of 1030 m over the entire application area and therefore would have no radiometric signature. The area will be reconnaissance RAB drilled in year one to confirm the stratigraphy and the holes will be downhole logged with a PFN tool. Selected samples will be assayed for a full suite of elements. A radiometric anomaly on the western side of Bunge’s Fault (Figure 1) may represent structurally controlled uranium mineralisation and presents a walk-up drill target which will be tested with six PFN-logged RAB holes to 50 m in year one. Selected samples will be assayed for U, Th and K. Example 2 Interpretation of open-file magnetic and gravity data recently released by NTGS suggests that a palaeotopographic ridge extends north-south through the application area (Figure 1). Our examination of waterbore cuttings in the Department’s Core Facility confirms the existence of Proterozoic sandstone “basement” at 60 m in RN123456. We believe that this ridge is analogous to the Wonarah-Alexandra high and will have controlled the distribution of phosphate within the Gum Ridge Formation of the Georgina Basin. This will be tested by reconnaissance air-core drilling. Drilling will be nominally on 0.5 km centres in the east where the Gum Ridge Formation is shallowest. Samples will be analysed on site using a hand-held XRF and selected samples will be sent for chemical analysis. Drilling in the west will be constrained by the poor access and rig capacity and will be dependant on the results in the east. Page 1 of 4Page 1 Page 1 of 4Page 1 of 4 Page 1 of 4 Example 3 This application is one of two contiguous applications targeting base metal mineralisation based on the presence of Cu occurrences located by NTGS during regional mapping and inhouse statistical analysis of open-file stream sediment geochemisty. The Cu signature in this application, defined by three stream sediment samples from the 1980s as indicated in Figure 1, is twenty times background. The highest priority area is therefore in the general catchment upstream which has no sampling what-soever. Work for year one will be to confirm and sample the documented base metal occurrences, undertake field reconnaissance of the whole EL using traverse mapping and selected surface sampling, resample the area of anomalous stream sediment geochemistry and in all tributaries upstream of it at 250 m spacing. Example 4 This application is one of four covering the southern margin of the Amadeus Basin. This area has been conceptually targeted using both a Witwatersrand gold model and a Zambian Copper Belt model (Figures 1 and 2). While both these models have been used elsewhere in basin before, we believe that this will be the first time the southern basin margin has been systematically explored. In year one, we intend to acquire aerial EM to locate shale hosts and to use structural interpretation of existing and reprocessed geophysical and remote sensed data to focus our on-ground efforts in year two. Proposed work program and expenditure Proposed work programs and expenditure applies to the following mineral title applications and renewals: Exploration Licence and associated Mineral Authority Exploration Licence in Retention and associated Mineral Authority Extractive Mineral Exploration Licence and associated Mineral Authority* * This mineral title cannot be renewed Details of proposed work programs and expenditure must be outlined as requested in the Approved Forms. Legislation does not prescribe a minimum amount that must be spent on exploration activities, instead the department has established guidelines for acceptable minimum expenditure levels and what constitutes allowable expenditure for reporting purposes under the Mineral Titles Act. This policy is to encourage titleholders to nominate realistic work programs and expenditure covenants. Should you fail to meet these commitments in the required operational periods, a penalty may apply. The majority of the proposed expenditure should be for work conducted in the field, and all other costs attributable to that work. You should consider the following items in determining the work program and related expenditures as outlined in the Approved Form:Note: Not all items need to be included in a proposed program, but expenditure needs to be specified for each component that is included. Access Negotiations Data research and Interpretation Geological Activities and Prospecting Geochemical Activities Costeaning Page 2 of 4 Geophysical Activities and Remote Sensing Drilling (Auger, Vacuum, RAB, RC, Diamond) Analytical Testing Mining, Bulk Sampling and Rehabilitation Office Studies, Administration and Overheads A brief summary of your exploration philosophy, nature of deposits sought and models to be tested will assist in the assessment of your proposed work program. Departmental fees, such as rents, are not considered an allowable expenditure. Example Work program for the FIRST YEAR Admissible Expenditure Specify Particular Activity Itemised minimum expenditure A. Access Negotiations B. Geological Activities and Prospecting C. Geochemical Activities D. Geophysical Activities and Remote Sensing E. Drilling F. Mining, Bulk Sampling and Rehabilitation G. Office Studies, Administration and Overheads (not to exceed 15% of the sum of A to F above) Geological mapping and rock-chip sampling Geochemical analysis $ 6,000 Detailed auger soil sampling program $ 8,000 Supervision and administration $ 6,300 Compilation and interpretation of existing open file geotechnical data Airborne Electromagnetic (EM) Survey Proposed expenditure $ 5,000 $ 6,000 $20,200 $51,500 Summary of proposed work for conducting authorised activities Summary of work proposed for conducting authorised activities applies to the following mineral title applications: Mineral Lease Extractive Mineral Permit and associated Mineral Authority Extractive Mineral Lease Page 3 of 4 Mineral Lease You should include details of the evaluation, processing or refining or minerals, treatment of tailings, storage or waste, studies and tests to assess the development potential of ore bodies or anomalous zones for evaluation of the commercial viability of mining. Extractive mineral titles Details should include processing and removal of extractive minerals, storage of waste (where applicable), Planned Future Activities are required for renewals for Mineral Leases, Extractive Mineral Permits and Extractive Mineral Leases and Exploration Licences in Retention. Example (Mineral lease, extractive mineral permit and extractive mineral lease only) The proposed application forms part of existing tenements (shown on the attached map) where the Company is currently active, the intention is to expand the existing operation of extracting sand, gravel and rock. Material will require extraction by drill and blasting then loaded into off road haulage vehicles to be transported to the crusher. Upon completion of the crushing the final product will be placed into stockpiles. Evidence of ore body or anomalous zone or full details of proposed ancillary purpose You must be able to provide evidence of an ore body or anomalous zone of likely economic value that exists within the proposed mineral lease area. To meet the requirements it is necessary to have defined much more than just a geochemical or geophysical anomaly. It would be expected the mineralisation with some continuity has been intersected by drilling. Ideally, data available should be such that a “Pre-Resource Mineralisation” (Australian Code) statement can be made. Appropriate references should be made to the annual reports pertaining to the exploration licence in retention, and other reports which should be lodged as attachments. Example The deposit is located in the most southern part of the application. Exploration for coal commenced over 10 years ago. Various techniques have been used to identify the presence of coal. These include desktop studies, geological mapping, and exploration drilling. Over 249 RC holes have been drilled and based on these results it appears viable to continue further exploration For further information, please contact: Titles Division 5th Floor Centrepoint Building, The Mall Darwin, Northern Territory Phone: 08 8999 5322 Fax: 08 891 7106 Email: titles.info@nt.gov.au Website: www.minerals.nt.gov.au Disclaimer Whilst this information bulletin has been provided to assist applicants in their compliance with the Mineral Titles Act, it is incumbent on them to acquaint themselves with the provisions of the Mineral Titles Act and all other laws of the Northern Territory as are applicable. Fees are subject to change without notice Page 4 of 4