EAST ASHBURTON

Results from the MMI sampling returned very low level values in gold and lead without the support of anomalism in other pathfinder elements for Mt Olympus style gold mineralisation.

The Horrigan’s Creek exploration licence (E52/1159) lies 50km south east of Paraburdoo and is believed to be prospective for Mt. Olympus style gold mineralisation and possibly for channel iron ore deposits. Following a determination by the National Native Title Tribunal, the exploration licence was granted to Arimco Mining Pty Ltd (In Liquidation) and in March 2006, transferred to D. Otterman, with whom NGM has an option agreement. First stage exploration commenced in July. Results of the first stage exploration were not available at the time of going to press. A program of MMI soil sampling was planned for E52/1159 (Horrigans) in November.(Sep/06)

Reconnaissance field work was completed with initial mapping, stream sediment, soil and rock chip sampling over selected areas. Mapping confirmed the presence of outcrops of Mt McGrath Formation and Duck Creek Dolomite in the tenements. These units are hosts to gold mineralisation elsewhere in the Ashburton Basin. Geochemical results from the Kennedy Creek area were generally disappointing and failed to highlight any potentially significant gold anomalism. Pathfinder elements (As and Cu) also returned generally low values. Considering the disappointing geochemical results from the Kennedy Creek area, the future of this group of tenements will be reviewed.