During 2008 the Company continued its review of the historical data on its granted tenements, which cover a total land area of approximately 905 square kilometres in the McArthur River Basin, Northern Territory. Refer to Figure 1.
The Company’s review of the historical data has confirmed significant manganese and base metal drill intersections on the tenements. Refer to Figure 2.
The Batten Creek (EL25467) and Caranbirini (EL25313) Exploration Licences comprise two granted tenements covering an area of approximately 782 square kilometres and are respectively located 70 kilometres and 15 kilometres north of the McArthur River zinc-lead-silver (Zn-Pb-Ag) mine, owned by Xstrata Zinc. The McArthur River mine is one of the world’s largest zinc-lead-silver deposits with an ore resource of approximately 120 million tonnes. The Project has been in operation since 1995 and produces approximately 1.1 million tonnes of zinc concentrate, 0.13 million tonnes of lead concentrate and 1million ounces of silver annually.
Both Caranbirini and Batten Creek Exploration Licences are located on crown and pastoral leases. The area is well serviced by road and port infrastructure at the Bing Bong port site.
The Batten Creek Manganese Project is located in the south-eastern section of the Batten Creek Exploration Licence (EL 25467). Historical drilling by BHP during 1995 returned a best intersection of 6 metres at 15 per cent Mn from between 30 and 36 metres. The manganese mineralisation is hosted within the younger Cretaceous sedimentary rocks overlying the older Proterozoic rocks, which host the McArthur River Pb-Zn-Ag deposits.
Importantly, the world-class Groote Eylandt manganese deposit (173 million tonnes at 47 per cent Mn) is located 205 kilometres north of the Batten Creek Manganese Project and is hosted within the same Cretaceous sedimentary rocks.
Brumby completed a VTEM survey over the Batten Creek Manganese Project in July 2008 to better delineate the extent of the manganese mineralisation.
A total of eleven near surface sub-horizontal manganese-clay target zones (BCMN-01 to BCMN-11) between surface and 80 metres depth have been delineated by the VTEM survey (refer to figure 3). There are three high-priority, three medium-priority and five low-priority target zones, the highest priority being BCMN-04, which covers an area approximately four square kilometres. The historical BHP intersection from hole BCP010 was sighted on target zone BCMN-04. Two other BHP holes, BCP009 and BCP011 did not intersect the currently defined VTEM anomaly and did not return any manganese intersections.
The VTEM survey has also detected a weakly conductive horizon between 150-300 metres. This conductive horizon is interpreted as a basement conductor with potential for stratiform hosted zinc lead silver deposits.
Brumby is currently continuing the process of preparing documentation to obtain statutory approvals and complete heritage surveys on the Batten Creek manganese target zones.
Brumby is also exploring for McArthur River-style Zn-Pb-Ag deposits along strike from the world-class McArthur River mine, which is hosted within the Lower Proterozoic Barney Creek Formation in proximity to the Emu Creek Fault zone. The Barney Creek Formation and associated Emu Fault zone continue to strike north of the McArthur River mine and pass through Brumby's Caranbirini and Batten Creek Exploration Licences.
The Batten Creek Exploration Licence contains a 35 kilometres strike length of the Emu Creek Fault zone, as well as associated cross-folding and sub-basins containing the Barney Creek Formation.
The encouraging results from the evaluation of the historical exploration data from the McArthur River tenements represent a further positive development for Brumby.
