Legend International Holdings
ACN 82 120 855 352
EXPLORATION LICENCE 23116
PARTIAL SURRENDER REPORT
FOR THE PERIOD
3 MARCH 2007 TO 2 MARCH 2008
Due 2 July 2008
BY
B. White and A. Raza
PRIVATE AND CONFIDENTIAL
NOT TO BE COPIED OR DISTRIBUTED
Level 8, 580 St Kilda Road, Melbourne, Victoria, 3004, Australia
Telephone: +61 3 8532 2810 Facsimile: +61 3 8532 2805
DISTRIBUTION:
Department of Primary Industry, Fisheries and Mines, Darwin
Legend International Holdings, Melbourne
i
EL23116_P08
Legend International Holdings, Inc
A.B.N. 82 120 855 352
Calvert Hills Project
2008 Partial Surrender Report
TENEMENT REPORT INDEX
OPERATOR:
Legend International Holdings
PROJECT:
Calvert Hills
TENEMENTS:
Exploration Licence 23116
REPORT PERIOD:
3 March 2007 to 2 March 2008
DUE DATE:
2 June 2008
AUTHOR:
B. White and A. Raza
STATE:
Northern Territory
LATITUDE:
16o 29’ S - 16o 39’ S
LONGITUDE:
135o 45’ E - 137o 47 E
MGA53 (easting):
8 159 000 mE - 8 175 600 mE
MGA53 (northing):
576 500 mN - 580 000 mN
1:250,000 SHEET:
SE53-03 Bauhinia Downs
1:100,000 SHEET:
6064 Mallapunyah
MINERAL FIELD:
Merlin diamond field
McArthur River HYC Pb-Zn
COMMODITY:
diamonds, phosphate, base metals
KEYWORDS:
diamonds, phosphate, data review.
ii
EL23116_P08
Legend International Holdings, Inc
A.B.N. 82 120 855 352
Calvert Hills Project
2008 Partial Surrender Report
Contents
1.
SUMMARY OF EXPLORATION ACTIVITIES .................................................. - 1 -
2.
TENEMENT STATUS............................................................................................ - 1 -
3.
LOCATION AND ACCESS ................................................................................... - 1 -
4.
GEOLOGY .............................................................................................................. - 4 4.1.
Regional geology.............................................................................................. - 4 -
4.2.
Local Geology .................................................................................................. - 5 -
5.
EXPLORATION ..................................................................................................... - 6 -
6.
BIBLIOGRAPHY ................................................................................................... - 8 -
List of Figures
Figure 1: Exploration Index ............................................................................................ - 2 Figure 2: Locality Plan.................................................................................................... - 3 Figure 3: Local Geology ................................................................................................. - 7 List of Appendices
iii
EL23116_P08
1. SUMMARY OF EXPLORATION ACTIVITIES
Exploration activities conducted over Exploration Licence 23116 is focussed on
diamonds. The tenement is part of the Calvert Hills Project being explored for
diamonds, base metals and phosphates. Exploration activities conducted during the
reporting period include field based reconnaissance mapping and a review of project
data to delineate potential exploration targets across the Calvert Hills Project.
2. TENEMENT STATUS
Exploration licence 23116 was granted Astro Mining Limited on the 3rd of March
2003, covering an area of 59.25km2 and forms part of the Calvert Hills Project. A
waiver of reduction was granted on the 2nd February 2005, and the tenement
underwent a compulsory 50% reduction on the 3rd March 2006, retaining 29.63km2.
A second waiver of reduction was granted on the 7th of February 2007, and a
compulsory 50% reduction occurred on the 3rd of March 2007, reducing the
tenement size to 16.46km2. On the 30th of July 2007, under Transfer Dealing
92370, control of the tenement was granted to Legend International Holdings, Inc.
On the 31st of January 2008 a third waiver of reduction was granted.
Tenement
Status
Date
Area (km2)
EL 23116
Granted
03/03/03
59.25
Waiver of reduction
02/02/05
Compulsory 50% reduction
03/03/06
Waiver of reduction
07/02/07
Compulsory 50% reduction
28/05/07
Transfer of control
30/07/07
Waiver of reduction
31/01/08
29.63
16.46
3. LOCATION AND ACCESS
Exploration licence is located approximately 15kms North West of McArthur River,
and 10kms North of Balbirini. The tenement can be accessed travelling east from
Daly Waters along the Carpentaria Highway towards McArthur River and Balbirini
then north via unsealed roads and tracks.
-1-
EL23116_P08
135°40'0"E
135°45'0"E
135°50'0"E
Legend
blocks to be surrendered
16°35'0"S
16°30'0"S
blocks to be retained
±
GDA94/MGA53
0
1.25
2.5
5
16°40'0"S
Kilometers
EL23116
Exploration Index
Comp. : BW
Date : 12/12/08
File : EL23116_EI_121208
Loc. : Melbourne
Plot : Exploration Index
Figure : 1
134°0'0"E
135°0'0"E
136°0'0"E
Legend
HODGSON DOWNS
30
P0
PETER YARD A
BUFFALO HOLE YARD
Population Centres
EL23116 blocks
GORRIE
Unpaved roads
MARYFIELD
HODGSON RIVER
Paved roads
NATHAN RIVER
ROSIE CREEK
NUTWOOD DOWNS
16°0'0"S
TOBACCO YARD
TANUMBIRINI
OLD BAUHINIA DOWNS
DALY WATERS
Highw
±
ay
AP030
Carpentaria
MCARTHUR RIVER
DUNMARA
GDA94/MGA53
BALBIRINI
ria H
Carpenta
0
ighway
12.5
25
50
Kilometers
17°0'0"S
MALLAPUNYAH
EL23116
Location Plan
BEETALOO
AP
03
0
NEWCASTLE WATERS
Comp. : BW
Date : 12/12/08
File : EL23116_EI_121208
Loc. : Melbourne
Plot : Location Plan
Figure : 2
Legend International Holdings, Inc
A.B.N. 82 120 855 352
Calvert Hills Project
2008 Partial Surrender Report
4. GEOLOGY
4.1. REGIONAL GEOLOGY
All of the known economic diamond deposits and other significantly
diamondiferous occurrences in Australia occur on the North Australian Craton
(“NAC”). The NAC underlies the Kimberley region of northern Western Australia,
the northern two thirds of the Northern Territory and the north western part of
Queensland. It also hosts many significant base metal, gold and uranium deposits.
The NAC was formed about 1850Ma ago during the Barramundi Orogeny by the
amalgamation of Archaean and early Proterozoic rocks that now form the basement
rocks. Proterozoic (1820-1600Ma) platform cover sediments, Palaeozoic volcanics
and sediments, and Mesozoic sediments cover these basement rocks.
The McArthur Basin is one such platform cover that developed above the NAC
between 1800-1500Ma. Its sedimentary package consists of unmetamorphosed and
less intensely deformed rocks of carbonate, siliciclastic and interbedded volcanics
deposited in a shallow intracratonic basin. The sedimentary sequence has been
divided into the Tawallah, McArthur, Nathan and Roper Groups and are separated
by regional unconformities.
The McArthur Basin is overlain by the remnants of the Cambrian Bukalara
Sandstone and the Cretaceous sediments of the Dunmarra Basin. There is a
widespread distribution of Cainozoic sandy soil, laterite and alluvium cover.
The major tectonic elements of the McArthur basin include the north-trending
Batten Fault Zone and its northern equivalent, the Walker Fault Zone, separated by
the east-trending Urapunga Fault Zone. The close association of base metal
deposits and major structures in the McArthur Basin suggests that these fault zones
provided an important control on mineralization.
The McArthur Basin hosts world class lead-zinc-silver and copper deposits and
several occurrences of smaller uranium and base metal deposits. A number of
economical and sub-economical diamond bearing kimberlite pipes have been
discovered in the basin. They are part of sporadically occurring, post Cambrian
volcanic activity on the NAC.
The large time span for the intrusion of diamondiferous rocks, 367Ma (Devonian
age) for the Merlin kimberlite field, 179Ma (Jurassic age) for Timber Creek
kimberlite field, and 25Ma (Tertiary age) lamproite field in the Ellendale (West
Kimberley) area, makes the NAC very prospective for diamond exploration. It is
expected that kimberlites would occur in the central parts of the NAC and
lamproites would be favored in the marginal areas and in cross cutting Proterozoic
mobile zones.
The kimberlites and lamproites of the NAC tend to occur along major northwest
and northeast trending structures. These structures can be seen in the gravity data
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EL23116_P08
Legend International Holdings, Inc
A.B.N. 82 120 855 352
Calvert Hills Project
2008 Partial Surrender Report
crossing the NAC and have a strike length of many hundreds of kilometers. These
structures are interpreted to be fundamental fractures in the NAC and are potential
channel ways for diamondiferous intrusives.
4.2. LOCAL GEOLOGY
The tenement is a part of the McArthur Basin that contains a thick platform cover
of unmetamorphosed and relatively undeformed sediments and minor volcanics of
middle Proterozoic age (Figure 3). The tenement is located north of the Abner
Range, along the western margin of the Batten Trough, a major north-trending synsedimentary graben that contains thick sequences (up to 10kms) of the McArthur
Basin and hosts major base metal deposits (Pietsch et al, 1991).
The NNW trending Tawallah Fault is located just to the west of the tenement,
however, it cross cuts the northwestern part of the tenement where it locally
changes direction to NNE. The Tawallah Fault is one of few faults that define the
western margin of the Batten Trough.
The central and southern part of the tenement is dominated by the Balbirini
Dolomite. The northern part of the Exploration Licence comprises rocks of the
Batten Subgroup juxtaposed against the basal units of the Umbolooga Subgroup
along the Tawallah Fault. A significant area of the tenement is covered with the
Cainozoic sediments that mainly include alluvium, sandy and gravelly skeletal soil,
ferricrete and calcrete. The following brief description of the rock formations
outcropping in the project area has been taken from Pietsch et al, 1991.
McArthur Group
The following formations belong to the McArthur Group and are exposed in the
project area.
Umbolooga Subgroup
The Masterton Sandstone: comprises thinly to thickly bedded, fine to medium
grained, moderately sorted quartzarenite and minor siltstone with conglomerate
units common in the lower part and ferruginous mottled sandstone distinct in the
upper part. The sandstone is cross bedded and extensively rippled.
The Mallapunyah Formation: is a distinct redbed unit of thin to medium bedded
shale, siltstone and dolostone with discontinuous interbeds of dolomitic sandstone.
It commonly consists of cauliflower chert nodules, ripples, desiccation cracks and
gypsum and halite casts and moulds.
Batten Subgroup
The Lynott Formation: consists of dolomitic siltstone, doloarenite, stromatolitic
dolostone and lesser dolomitic sandstone. Three units have been indentified;
namely the Caranbirini, Hot Spring and Donnegan Members. The Hot Spring
Member and Donnegan Member outcrop along the northwestern boundary of the
tenement.
The Yalco Formation: is intensely silicified, thinly bedded, stromatolitic dolostone
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EL23116_P08
Legend International Holdings, Inc
A.B.N. 82 120 855 352
Calvert Hills Project
2008 Partial Surrender Report
containing abundant laminae and nodules of diagenetic chert with minor
interbedded lithic and dolomitic sandstone. Some less silicified dolostones are
slightly phosphatic.
The Stretton Sandstone: comprises very fine to medium grained, wavy to parallel
bedded, pale green to grey quartz sandstone and minor micaceous siltstone.
The Looking Glass Formation: consists of intensely silicified, stromatolitic
dolostone. Thin interclast conglomerate beds occur throughout and intervals of
silicified cherty nodular and planar bedded sandy dololutite and doloarenite are
common.
Nathan Group
The Balbirini Dolomite: is a thick dolostone unit consisting of predominantly
dolarenite, dololutite and dolomitic shale with minor occurrence of interclast
breccias, ooid dolostone, dolomitic sandstone, dolomitic siltstone and potassium
rich mudstone. Stromatolites and pseudomorphs of gypsum, anhydrite and halite
are common.
5. EXPLORATION
Exploration activities conducted over Exploration Licence 23116 is focussed on
diamonds and forms part of the Calvert Hills Project being explored for diamonds,
base metals and phosphates. Exploration activities conducted during the reporting
period include a data review and field based reconnaissance mapping. Previous
exploration data was reviewed in order to delineate potential exploration targets.
Identified targets were subsequently investigated in the field for their potential to
host economic mineralisation. Target prioritisation is currently being undertaken for
planning future exploration activities across EL23116 and the other Calvert Hills
Project tenements.
-6-
EL23116_P08
135°40'0"E
-Pma
-Pmd
135°45'0"E
-Pmea
-Pty
Czb
-Pma
-Pmea -Pmea
-Pmea
-Ptn
-Pmnh
-Pmd
-Ptl
-Pmea
-Pte -Ptn
-Pmnh
blocks to be surrendered
-Pmnc -Pmnc
-Pmea
-Pmea
-Pmd
-Pma
blocks to be retained
Geology
-Clb - fine to coarse sandstone
-Pma-Pmd
-Pma
-Pmq-Pmea
-Pmea
-Pmea
-Pmea
-Pmea
-Pmei - karstic weathered crystalline dololutite
-Pmd-Pma
-Pmnh
-Pmnh
-Pmnh
-Pmf - dolomitic siltstone, shale dololutite
-Pmea
Qa
-Pmea
-Pmea
-Pmea
-Pml - dolomitic shale and siltstone
-Pmm - recrystallised dolostone
16°30'0"S
-Pmnc - thin bedded dolomitic siltstone and shale
-Pml
-Pmnd - dolomitic siltstone
-Pmt
-Pms
Cz
-Pmnh - dolomitic siltstone and silty dololutite
-Pmq
-Pmt
Cz
-Pnz
-Pmpc - crystalline dololutite
-Pmt
-Pmq - dolomitic, carbonaceous and pyritic shale and siltstone
-Pmt - dololutite, stromalotitic dololutite
-Pmea
-Pmx - dololutite, stromalotitic dololutite with lesser sandy dolarenite
-Png - laminated sandy dolarenite
-Pmt
-Pmt
-Pnz
-Pnz
-Pmi
-Pma
-Pmnd,-Pmj,-Pmr,-Pmo
-Pmi
-Pmd -Pmea,-Pmpc,-Pmq,-Pmx,-Pmnc
-Pma
-Pma
-Pmf
16°35'0"S
-Pma
-Pmd
-Pma
-Pmd
-Pnz
-Pma
-Pmf,-Pme,-Pmp
-Pma-Pmi
-Pma
-Pmi
-Pmi
-Pmd
-Pmi
-Pmf
-Pmx
-Ptlr - sandstone
-Ptn - feldspathic sandstone
Cz
-Pmx
-Pmt
Cz - undifferentiated alluvial/colluvial/elluvial deposits
-Pmea
Czl/-Pra - Ferricrete
-Pmei
-Pmp
-Pmnc
-Pmq
-Pmx
Kl - sandstones and siltstones, commonly ferruginised and silicified
Qa - alluvium
Cz
-Pmnh
-Pmnh
-Pmpc
Czb - clay rich soil
±
-Pnz
-Pmi
-Pmx
-Pty - quartz sandstone
-Pmx
-Pnz
-Pnz
-Pnz
-Pts - amygdaloidal basalt lava
-Pmp
-Pmnd,-Pmj,-Pmr,-Pmo
-Pmf
-Pmx,-Pmnc
-Pmea
-Pmnh
-Pmpc,-Pmq,-Pmx,-Pmnc
-Pmnh
-Pmnd,-Pmj,-Pmr,-Pmo
-Pmnd,-Pmj,-Pmr,-Pmo
-Pmnc
-Pnz
-Pnz -Pmnd,-Pmj,-Pmr,-Pmo
-Pmnh
-Pnz
-Pmnd,-Pmj,-Pmr,-Pmo
-Pnz
-Pmf
-Ptl - quartzarenite
-Pmea
-Pmd
-Pmt
-Pte - spheroidally weathering fine to medium grained basaltic doleritic lavas
-Pmea
-Pnz
-Pro - interbedded pale purple and pale green mudstone
-Prr - fine grained micaceous sandstone and siltstone
-Pmp
-Pmq
-Pnz
-Pmi
-Pri - fine grained structureless quartzarenite
-Pmea
-Pmea
-Pml
-Pre - strongly jointed quartzarenite
-Pmei
-Pmd
-Pmf
-Pmt-Pmei,-Pmp,-Pmq
-Pmd
-Pma
-Pra - Abner Sandstone
-Pmea
-Pmt
-Pmnc
-Pmd
-Pnz - stromatolitic dololutite, commonly cross stratified and rippled dolarenite
-Pmt
-Pmt
-Pmo
-Pmi
-Pms - quartzarenite
-Pnz
-Pmnh
-Pmi
-Pmp - thin bedded to laminated dololutite
-Pmd
-Pmea
-Pnz
-Pmf
-Pmo - silicified, commonly stromatolitic dolostone
-Pmea
-Pmnc
-Pnz
-Pmi
-Pmi - dolomitic sandstone
-Pmj - thinly interbedded stromatolitic dololutite
-Pmea
-Pmnh
-Pmi
-Pma - stromatolitic dololutite and silty dololutite
-Pmd - medium grained dolomitic and lithic vuggy sandstone
-Pmea
-Pmea - stromatolitic dololutite sandstone
-Pmnh
Cz
-Pmt
-Pmq
-Pmnh
-Pmnh -Pmq
-Pmnh
-Ptlr
Legend
135°50'0"E
-Pmnd
-Pnz
-Pnz
-Png
-Pnz
-Pmea
-Pmnh
-Pnz
-Pnz
-Pmd
-Pmpc
-Pmq
-Pma
-Pmnh
-Pmpc -Pmea
-Pnz
-Png
-Pnz
-Png
-Pmx
-Pmx
16°40'0"S
-Pmnh
-Pmd
-Pmnd,-Pmj,-Pmr,-Pmo
-Pmi
-Pmx
-Pmnh
-Pmpc
-Pmea
-Pmq
-Pmq
-Pmpc
-Pmea
-Pmx
-Pmq
-Pmq
-Pra Kl
0
-Pra
-Pmf-Pmnh,-Pmnd,-Pmj,-Pmr
-Pmea
-Pra
1.25
2.5
5
EL23116
Geology
-Pre
-Pnz
-Png
-Pmei,-Pmp,-Pmpc,-Pmx
-Pmm-Pnz
-Pmd
-Pmj,-Pmr,-Pmo
-Pro
-Pmt
-Pmea -Pmf
-Pmj
Kilometers
-Png
-Prr
-Pmq
GDA94/MGA53
-Pmnd
-Pmj
-Pmj,-Pmr,-Pmo
-Pmx
-Pmx
-Pmpc
-Pmnd,-Pmj,-Pmr,-Pmo
-Pnz
-Pnz -Pmnh
-Pnz
-Pmd
-Pmq
-Pmnd
-Pri
-Pmnd,-Pmj,-Pmr,-Pmo
-Pmx
-Pnz
-Png
Comp. : BW
Date : 12/12/08
File : EL23116_EI_121208
Loc. : Melbourne
Plot : Geology
Figure : 3
-Prr
Czl/-Pra
Cz
-Clb
-Pri
Legend International Holdings, Inc
A.B.N. 82 120 855 352
Calvert Hills Project
2008 Partial Surrender Report
6. BIBLIOGRAPHY
Pietsch, B.A., Rawlings, D.J., Creaser, P.M., Kruse, P.D., Ahmad, M., Ferenczi
P.A. and Findhammer T.L.R., 1991. Bauhinia Downs SE53-3. Northern Territory,
1:250 000 Geological Series. Northern Territory Geological Survey
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EL23116_P08