Gossan Dam

(EL 70/3545, East Coast 80%)

The Exploration License over the Gossan Dam (Figure 1) base metal and silver prospect is near Mukinbudin, which is 300Km east of Perth in Western Australia. No resource has been defined in the area, but significant mineralisation has been identified by rock chip sampling and limited drilling from previous companies.

In 1970, Asarco Australia Ltd carried out rock chip sampling. The results recorded maximum values of 3.25% Zn (Zinc), 1.16% Pb (Lead), 77g/t Ag (Silver) and 9.6% Mn (Manganese).

In 1976, Otter Exploration NL carried out further rock chip sampling and returned grades of up to 6.8% Zn, 6.7% Pb and 127g/t Ag from the gossan and 5.2% Zn, 2.4% Pb and 98g/t Ag from the surrounding syenite host rocks.

In 1977, Shell Minerals Exploration (Australia) Pty Ltd undertook drilling. The best results recorded averaged 1.03 metres @ 1.00% Cu, 1.50% Pb, 1.70% Zn and 760g/t Ag (fillet sample) and 0.65% Cu, 1.58% Pb, 1.81% Zn and 680g/t Ag (quarter BQ core sample) from 85.09m. A total of 7 Diamond Drill holes for 930.95 metres and 3 Percussion holes for 141 metres have been drilled. All drilling undertaken was based on the view that the mineralisation dipped to the south.

In 1997, Merrit Mining NL undertook further sampling of gossans. The best results recorded were 2.23% Zn, 1.01% Pb, 34.8 g/t Ag and 12.9% Mn. All the previous work has concluded that potential exists for extensions to the known high grade silver mineralisation. However, the complex geophysical magnetic anomalies remain untested and no drilling has ever tested the potential for a north dipping mineralised system.

East Coast completed a desktop study during the year, which suggests that the known mineralisation is part of a larger regional concentric structure. Further ground investigation is required to determine if there are further outcrops of gossanous material, similar to that at the known Gossan Dam area. Arrangements will be required with the local pastoralists prior to field work.