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Gulf Mines Limited

Ebagoola Project

Wollogorang Project

Nowa Nowa Project

 Wollongorang Project

 

WOLLOGORANG URANIUM PROJECT (NT)

The project area is contained within three granted Exploration Licences and one Exploration Licence Application and covers approximately 2,277 square kilometres of the Wearyan Shelf tectonic domain of the south eastern part of the Proterozoic McArthur Basin. The majority of the rocks in the project area consist of a northwest-dipping package of sedimentary,
volcanic and carbonate rocks that comprise the Tawallah Group, the lowermost unit of the McArthur Basin sequence.

Stratabound Base Metal

Mineralisation

Base metal mineralisation occurs within specific stratigraphic intervals of the Wollogorang Formation of the Talwallah Group over several kilometres in
length. This mineralisation is evidenced in a number of copper/lead/zinc stream sediment anomalies and mineralised rock chip samples over a distance of approximately 75 kilometres. GML considers that past exploration
of these anomalies has been inconclusive. The spatial association of some of these geochemical anomalies with recently detected geophysical features (magnetic depletion zones, fault and domal structures) has enhanced their potential as exploration targets. GML considers that these targets are prospective for:
- Large tonnage, stratabound copper ± cobalt deposits within various sandstone units of the Wollogorang Formation. It is suggested that the style of mineralisation will have similarities with the giant deposits of the Central
African Copper Belt or the Kupferschiefer of Europe.
- Large tonnage zinc-lead-silver deposits in the shale-dolostone units of the Wollogorang Formation, similar to the nearby giant McArthur River and Century deposits.

Breccia-hosted Base

Metal Mineralisation

GML’s tenement area surrounds the Redbank Copper Field contained in ERL 94, which is currently under development by Redbank Mines Limited . The Redbank Copper Field contains twenty-one copper-bearing pipes developed
within altered and brecciated Gold Creek Volcanics and the underlying Wollogorang Formation, which contains current published resources of 4.3 million tonnes at an average grade of 1.5 % Cu within two major pipes. The Redbank copper-rich breccia pipe structures exhibit many geological similarities with the El Soldado pipe deposits of central Chile, which contain approximately 200 million tonnes at an average grade of 1.35 % copper.
GML have recognised a large (3 km diameter), circular, magnetic low feature at Masterton Ridge which could represent a large buried breccia pipe close to the Redbank Copper Field. It is planned to test this feature with a number of deep drill holes. A number of smaller magnetic features in the Hobblechain area could also represent a cluster of smaller mineralised pipe structures.

Uranium Mineralisation

Many uranium and uranium-copper occurrences are known to occur in the lower units of the Tawallah Group. The most significant deposits are associated with altered mafic dykes intruding the Westmoreland Conglomerate, the oldest member of the Tawallah Group. GML has a joint venture over the southern portion of the tenement area which includes the uranium occurrences of the Pandanus Creek uranium field. Exploration has delineated a number of targets for ground follow-up. In the northern portion, GML have generated several uranium targets from the recent airborne geophysical survey, based on interpretation of uranium/thorium (U/Th) ratios. The largest of these, at Twelve Mile Creek, is characterised by a number of spot U/Th highs over an aggregate length of approximately 20 kilometres. The target area is spatially associated with a major linear fault structure and could result from leakage along a fault/dyke, an unconformity structure, a contact
zone or a uranium-enriched volcanic unit. GML considers that the entire target feature could indicate a previously unexplored uranium field. Several prominent spot U/Th highs, representing residual uranium anomalies, within
the large zone are scheduled for initial ground follow-up and possible scout drilling.

Diamond Mineralisation

Micro-diamonds occur as a “cloud” over a large area of the Northern Territory. Previous exploration has resulted in the discovery of the Coanjula diamond prospect and the Merlin Diamond Field, both approximately 170 kilometres west of the Wollogorang Project area. Diamond exploration by CRA Exploration in the period 1993 to 1998, resulted in the discovery of four macro diamonds and 38 micro diamonds in the headwaters of Branch Creek. These occurrences, at Queenslander Creek and Nabunga Creek, are spatially associated with magnetic low and Dighem features, possibly indicative
of kimberlitic source bodies. GML considers that the geophysical features have not been adequately tested and a program of scout drilling is planned. Circular magnetic features at Coolibah Creek and Calvert could also be
indicative of kimberlitic bodies.

Exploration Programs and Budgets

Exploration programs will initially involve geological mapping, geochemical sampling, reconnaissance induced polarisation (IP) and radiometric geophysical surveys and scout reverse circulation percussion and diamond drilling (5500 m in the first two years) of the detailed target areas. Initial exploration success during Year 1 will be followed by delineation and definition drilling programs at priority target areas.