Diamond Well Project

Tenements E51/1191, 51/1204 and 51/1205 51/1206 51/1208

Introduction

The Diamond Well group of tenements are located 87km west northwest of Wiluna, and 18km north of the Wiluna-Meekatharra road west of Mt Russell.  The tenements lie on the eastern portion of the Glengarry 1:250,000 map sheet (SG50-12), and on the published 1:100,000 Mount Bartle and Merewether geological sheets (2845 and 2844 respectively).

Diamond Well Geology & Exploration Results and Proposed Program

Results from a collaborative mineral mapping and alteration study with CSIRO of the Company's HyMap imagery, in conjunction with the Company's geochemical data and published data, as well as extensive geochemistry results and geological mapping has resulted in the identification of selected targets.  The targets have been prioritised and furher MMI soil geochemistry surveys have been recently completed.  A number of high priority drill targets, including a 8km2 copper gold anomaly.  To date show high base metal zinc values within fault zones of an interpreted graben.  Prospecting has returned up to 890 ppm Cu and 10,300 ppm Zn (1.03% Zn). At Diamond Well a mineralised zone 500 metres long and 2 metres wide returned up to 1.05% Pb 850 ppm Cu and 19 g/t Ag (Figure 9).

The Diamond Well Cu, Zn prospect is in a similar stratigraphic position 35km to 50km west of the Mt Bartle prospect. Airborne magnetic interpretation indicated a graben extending through Killara and Diamond Well and of 35km width. A thick pile of submarine to sub-aerial volcanics has been extruded from easterly sub-crustal rifts forming a local basement.

Diamond Well Geology geochemical  map data.

Ferruginous, pyritic and tuffaceous shales overlie the volcanics. The folded and faulted Proterozoic volcanics and sediments contain irregular quartz veins with minor Pb, Cu and Ag.  Two vein sets occur; one steeply dipping east- northeast trending and another of vertical dip and north south orientation.  North east striking ferruginous shales, tuffaceous sandstone and minor limestone outcrop underlain by shallow dipping basic to intermediate volcanics.  Significant mineralisation was located in the east north east tensional fault possibly up to 1.4 km length. Mineralisation is contained in chemical sedimentary rocks (carbonate and black shale, with some breccia) and includes Fe, Zn and Cu -sulphides, of malachite, covellite and chalcocite.  Geochemistry shows association of zinc, cobalt and nickel with manganese bearing shale. Sampsons Bore returned values up to 1.03% Zn. Uranium exploration up to 1980 by Chevron Exploration Corporation provides a large amount of geological and stratigraphic detail was inconclusive in defining environments for uranium deposition.