RENISON CONSOLIDATED MINES NL
ACN 003 049 714
2006 6th Annual Report
On
EXPLORATION LICENCE, EL 22068
Steve’s Hill
Period Beginning 1st September 2005
And the Period Ending 30th August 2006.
LICENCEE \ OPERATOR:
STANDARD 1:250,000 SHEET:
STANDARD 1:100,000 SHEET:
AUTHOR:
DATE:
DISTRIBUTION:
Renison Consolidated Mines NL
SD5208 Pine Creek
McKinley River 5271
Prue Kobiolke Exploration Geologist
Scott Hall
Project Manager
September 2006
NT Department of Mines & Energy.
Renison Consolidated Mines NL, Brisbane.
Renison Consolidated Mines NL, Tom’s Gully.
Ernie Chin, John Lewis.
Tenement Details
EL22068 is held by Arnhem Highway Estate Pty Ltd and John Michael Lewis. Renison
Consolidated Mines NL signed an ‘Option to Purchase’ Agreement with the tenement
holders in January 2004. Renison are now the Operators and Managers of the project.
Table 1 Tenure Details EL 22068
2
Block Identification Map
Marrakai 8/5
Blocks
Date of Grant
Date of Renewal 1
Expiry Date 1
Date of Renewal 2
Expiry date 2
58/33: 58/34; 58/35; 57/33; 57/34; 57/35; 57/36;
57/37; 57/38; 56/33; 56/34; 56/35; 56/37; 56/38
3rd August 2000
8th July 2004
2nd August 2006
3nd August 2006
2nd August 2008
SUMMARY
Renison has been developing a regional exploration strategy in the NT, targeting
dislocations within regional structures that intersect known stratigraphical and structural
features that host economic gold mineralisation, within the northern Pine Creek Geosyncline.
EL 22068 ‘Steve’s Hill’ forms part of a regional package of tenements that have a north-west
trend, which covers what the Company has called the ‘Noonamah–Corroboree Trend’. The
licence straddles a conspicuous zone of dislocation evident in processed aeromagnetic
imagery. Several recently discovered gold prospects are aligned along this zone of
dislocation over 2.5 kilometres strike extent within the Steve’s Hill tenement.
The source of the significant surface mineralisation found by the local prospectors in
the form of nuggets and specimen pieces has not as yet been located by any significant hard
rock intercepts. Several low order anomalies have been found, but none significant enough
to explain the amount found by prospectors.
It is hoped through detailed geological mapping and further reprocessing of this data
which is currently ongoing the source of this mineralisation will be located and define a
resource which can be used as supplemental feed for the Tom’s Gully operation which is
currently undergoing final commissioning.
Due to the commitments of the final construction and commissioning phase of the
Tom’s Gully operation Drilling was not completed during this year of tenure.
3
Table of Contents
TENEMENT DETAILS ......................................................................................................................... 2
SUMMARY............................................................................................................................................ 3
TABLE OF CONTENTS ....................................................................................................................... 4
TABLES & FIGURES ........................................................................................................................... 5
1. INTRODUCTION .............................................................................................................................. 5
1.1 LOCATION & ACCESS ............................................................................................................................ 5
2. REGIONAL GEOLOGY.................................................................................................................... 7
2.1 THE MOUNT PARTRIDGE GROUP ................................................................................................................ 7
2.1.1 Wildman Siltstone ................................................................................................................................. 7
2.2 THE SOUTH ALLIGATOR GROUP ................................................................................................................. 7
2.2.1 Koolpin Formation ................................................................................................................................ 7
2.2.2 Gerowie Tuff ......................................................................................................................................... 7
2.2.3 Mount Bonnie Formation ..................................................................................................................... 8
2.3 FINNISS RIVER GROUP ................................................................................................................................. 8
2.3.1 Burrell Creek Formation ...................................................................................................................... 8
2.4 INTRUSIVES ................................................................................................................................................... 8
2.4.1 Dolerite .................................................................................................................................................. 8
2.5 DEFORMATION & METAMORPHISM ............................................................................................................ 8
3. PREVIOUS EXPLORATION .......................................................................................................... 10
4. CURRENT EXPLORATION ........................................................................................................... 10
4.1 GEOPHYSICS ............................................................................................................................................... 10
4.2 ROCK CHIP SAMPLING ............................................................................................................................... 10
6. EXPENDITURE DETAILS FOR EL22068 DURING 2005/2006 .................................................. 12
7.
CONCLUSION AND PROPOSALS ........................................................................................ 13
7.1 CONCLUSIONS............................................................................................................................................. 13
7.2 PROPOSALS & FORWARD PROGRAM ......................................................................................................... 13
4
Tables & Figures
Table 1 Tenure Details EL 22068 ........................................................................................ 2
Figure 1 Tenement Location Map ....................................................................................... 6
Figure 2 Regional Geology Map ......................................................................................... 9
Section 7.2 Work program for the next twelve months: ................................................ 13
1. INTRODUCTION
Previous exploration within the licence area has been successful in locating a NE–SW
oriented ridgeline of Early Proterozoic metasediments that hosts coarse gold over 2.5
kilometres of strike. The gold was detected using hand held metal detectors, which located
nuggets up to 30oz in size. The initial discovery was at Steve’s Hill on the northern boundary
of the tenement; further coarse gold was detected at John’s Flat 1 kilometre to the south and
at Chin’s Gully.
All previous work is being compiled into GIS format for target generation. The objective
of the Company within the licence area is to find resources suitable for the continuation of
the dump leach operation at the nearby Quest 29 Project and more hopefully suitable grade
material to supplement the underground mining being planned for Tom’s Gully.
1.1 LOCATION & ACCESS
EL 22068 “Steve’s Hill” is located approximately 75 kilometres southeast of Darwin,
south of the Arnhem Highway.(Figure 1) Access to the tenement is via the sealed Arnhem
Highway and then the Marrakai Track; local vehicular access is via freehold property
boundary fire breaks and interior bush tracks. These are only passable during the dry
season. Access during the wet season is limited to light 4WD vehicles only.
5
Figure 1 Tenement Location Map
6
2. REGIONAL GEOLOGY
EL 22068 is located within the Pine Creek Geosyncline, which has been interpreted as
an intracratonic basin lying on an Archaen basement, and containing a 14 km thick
sequence of Proterozoic sediments, accompanied by lesser volcanics, granitic plutons and
dolerite intrusions. The northern portions of the project area contain the oldest sediments
The Mount Partridge Group that is unconformably overlain by the South Alligator Group,
which comprises most of the tenement areas. Cainozoic sediments overlie the Proterozoic
units. Tertiary and Quaternary soils and gravel’s unconformably overlie all the lower lying
portions of the tenement area, generally referred to as “Black Soils Regions”. All of the Early
Proterozoic sediments and volcanics in the region were folded in a major deformation event
dated around 1800 million years. The fold axes trend north-northeast, and generally plunging
gently to the south. Syn and post tectonic granites have intruded the metasedimentary
package. As can be seen in Figure 2.
2.1 The Mount Partridge Group
2.1.1 Wildman Siltstone
The Mount Partridge Group is represented by the Wildman Siltstone, which is
interpreted to be up to 1500m thick. The Wildman Siltstone consists of laminated and
banded shale, carbonaceous and often pyritic siltstone inter bedded with undifferentiated
volcanics in up to 100m interbeds, minor dolomitic sediments may also be present. The
Wildman Siltstone is interpreted to be prospective for large tonnage, low-grade gold deposits
and small tonnage, high-grade deposits. The Wildman Siltstone hosts the Tom’s Gully gold
deposit.
2.2 The South Alligator Group
The Koolpin Formation, Gerowie Tuff and the Mount Bonnie Formation represent the
South Alligator Group. The rocks of the South Alligator Group are considered to be
prospective for either large tonnage, low grade gold deposits (such as that at the nearby
Rustler’s Roost gold mine) or small tonnage, high grade deposits.
2.2.1 Koolpin Formation
The Koolpin Formation comprises ferruginous siltstone and shale, which is commonly
carbonaceous and pyritic. Chert bands and nodular horizons are common and lenses of
ironstone occur occasionally, as haematitic breccias throughout the sequence into
undisturbed quartz-veined siltstone and shale. Minor components of dolomite can also
occur. The Koolpin is one of the most prospective units in the region, hosting gold
mineralisation at West Koolpin, Taipan, BHS and North Koolpin at the nearby Quest 29
dump leach operation.
2.2.2 Gerowie Tuff
The Gerowie Tuff conformably overlies the Koolpin Formation and has similar
characteristics of siltstones and shales but is not as iron rich. It is dominated by graded
beds of siliceous, tuffaceous mudstones grading to greywacke and arenite, diagenetically
altered, up to 600m thick, and generally poorly mineralised. The highly siliceous component
7
of the tuffs and arenites make them resistant to erosion, and they tend to form areas of high
relief.
2.2.3 Mount Bonnie Formation
The Mount Bonnie Formation conformably overlies the Gerowie Tuff and is dominated
by a shallow marine sequence of interbedded and graded siltstone, chert and greywacke
with occasional BIF’s. The unit can be up to 600m thick and is generally iron rich and may
be siliceous in places. The Mount Bonnie Formation hosts the Rustler’s Roost deposit.
2.3 Finniss River Group
2.3.1 Burrell Creek Formation
Conformably overlying the Mount Bonnie Formation is the Burrell Creek Formation
interpreted as a flysch sequence of fine to coarse marine sediments and appears to be part
of continuous sedimentation process. Due to the lack of marker horizons and poor exposure
the width of the unit is unknown but is thought to be >1000m. This Formation is considered
prospective for large low-grade gold deposits as typified by the Batman deposit of Mount
Todd. The potential also exists for small high-grade deposits similar deposits such as
Bandicoot, Marrakai and the Ringwood line which all lie on a major deep-seated magnetic
trend (the Noonamah-Corroboree trend).
2.4 Intrusives
2.4.1 Dolerite
The Zamu Dolerite occurs as small bodies that are poorly exposed due to the easily
erodable nature of the dolerite. It consists of altered quartz dolerite and gabbro and is
generally narrow and broadly conformable to bedding as thin sills. The Zamu Dolerite is the
only known suite of mafic intrusives that were emplaced prior to regional metamorphism and
deformation.
The Zamu Dolerite appears to have a controlling influence on the
mineralisation at Quest 29 within the Koolpin sediments but this is not fully understood at this
stage.
2.5 Deformation & Metamorphism
Regional deformation at around 1800My resulted in the formation of regionally
significant southwest plunging isoclinal to open folds. Regional metamorphism has resulted
in the conversion of the sedimentary packages to greenschist and sometimes higher to
amphibolite metamorphic assemblages. This event also resulted in the intrusion of thin sills
of Zamu Dolerite, and the post – tectonic emplacement of felsic granitic suites at 1790 + 110
My in the region. Structural deformation of the metasediments is complex.
8
Figure 2 Regional Geology Map
3. PREVIOUS EXPLORATION
The Carpentaria Exploration Company carried out a regional exploration programme
for precious and base metals in the region in the late 1980’s and early 1990’s following the
discovery of Tom’s Gully in 1989. Previously exploration carried out by Renison consists of:
-Interpretation of Airborne Magnetic and Radiometric data.
-Aerial Photo interpretation.
-Gridding.
-Regolith Mapping.
-Soil Sampling.
-Rock chip sampling.
-Costeaning.
-RAB Drilling.
- RC Drilling
4. CURRENT EXPLORATION
4.1 Geophysics
Previously a Sub-audio magnetics survey of two kilometres of strike at Steve’s Hill had
been carried out during April of 2005. The objective of the survey was to highlight significant
EM conductors, and to provide high resolution magnetics imagery over the ground from
north of Steve’s Hill to south of John’s Flat, where coarse colluvial and supergene enriched
gold had been discovered. Significant 8 amp EM conductor anomalies generated from the
survey outlined current transmitting structures and /or stratigraphy. Similarly, the processed
high resolution ground magnetics indicated a strong, fault bounded non-magnetic low
structure trending northwest, and which passed under the John’s Flat gold prospect. This
structure appears to have acted as a conduit for gold mineralising fluids..
Further analysis of the data is still taking place and detailed reprocessing and
reinterpretation is currently being undertaken. It is hoped that with this information a source
for the mineralisation can be found.
4.2 Rock Chip Sampling
Detailed geological mapping and rock chipping within the area is still ongoing and
further detailed mapping will be undertaken. Rockchips were largely of sub-cropping and
outcropping quartz veining, with some quartz float also being sampled. Several samples of
laterite were also collected and outcropping magnetite Banded Iron Formation in the eastern
part of the tenement was also examined.
Several new prospects have been identified from the previous rockchip sampling; the
Golden Pig prospect (which overlies a major northwest basement structure) and Howitzer
Hill, both on the western boundary of the licence. East of the Steve’s Hill trend, the Jasons
Rise and Mayo’s Ridge prospects occur on a parallel ridgeline and a major northeasterly
lineament, all of which will have follow up mapping and sampling.
5. REHABILITATION & ENVIRONMENTAL PROTECTION
Existing access tracks and bush tracks were used throughout the field exploration
programme. Where travel across country was necessary to gain access to sample sites and
outcrops, vegetation disturbance was kept to a minimum.
11
6. EXPENDITURE DETAILS for EL22068 DURING 2005/2006
Expenditure Type
Covenant
EL 22068
$
85,000
Accommodation, Messing & Travel Total
Acquisition of imagery Total
Acquisition of maps and literature Total
Administration Total
Analysis of Data \ Results Total
Assaying Total
Computers & Software Total
Consultants Total
Consumables Total
Data Acquisition Total
Data Entry Total
Drilling Total
Earthworks Total
Fuel Total
Geo-Physics Total
Geological Personnel Total
Miscellaneous Total
Rehabilitation Total
Reporting Total
Road works Total
Site office costs Total
Vehicle Expenses Total
$491.25
$500.00
$448.50
$1326.60
$3,500.00
$225.5
$650
$4,750.00
$3300
$0
$662
$0
$0
$420.5
$0
$15127.2
$0
$1200
$1,480.00
$0
$783
$1826.4
Grand Total
$36,690.95
I certify that the information contained herein, is a true statement of the operations
carried out and the monies expended on the above mentioned tenement during the
period specified as required under the Northern Territory Mining Act and the Regulations
thereunder.
X
I have attached the Technical Report
1. Name:
Position:
Prue Kobiolke
Exploration Geologist
Signature:
Date:
01/09/2006
12
7. CONCLUSION AND PROPOSALS
7.1 Conclusions
Further fieldwork will continue at Steve’s Hill and John’s Flat in an attempt to locate the
primary vein Au mineralisation. Follow up work may require a close spaced RAB drilling
programme to blade refusal; further RC drilling is only recommended should significant and
continuous gold mineralisation be encountered.
Several large gold nugget specimens have also been found along the eroding flanks of
Chin’s Gully. A close spaced soil/auger survey to several metres depth is planned, to
determine the extent of gold anomalous colluvium, and to trace the supergene gold to the
source veins.
Rock chip sampling has identified several other gold anomalous prospects within EL
22068. These new areas will be further tested during the coming year with RAB drilling,
costeaning and soil/auger survey.
7.2 Proposals & Forward Program
Further detailed geological and traverse mapping is planned for existing prospects
Steve’s Hill, John’s Flat and Chin gully, as well as all new prospects, the Golden Pig,
Howitzer Hill, Jasons Rise and Mayo’s Ridge. A RAB drilling programme is proposed for
Steve’s Hill and John’s Flat gold prospects to locate the auriferous primary veins, RAB
drilling is also proposed for follow up at Golden Pig prospect, Howitzer Hill, Jasons Rise and
Mayo’s Ridge.
A soil/auger programme will be designed for the northern flanks of Chin’s Gully to
determine the distribution of lateritic and colluvial gold, and to locate the buried auriferous
quartz vein/veins shedding the gold.
As well as study and interpretation of literature reviews and initial data entry to GIS of
historical work will be recommenced.
Section 7.2 Work program for the next twelve months:
Activities proposed (please mark with an "X"): X
Drilling and/or costeaning
X
Literature review
Airborne geophysics
X
Geological mapping
Ground geophysics
X
Rock/soil/stream sediment sampling
Other:
Estimated Cost:
$60,000
13