Third Quarter Activities Report Document date: Mon 29 Apr 2002 Published: Mon 29 Apr 2002 16:20:41 Document No: 262554 Document part: B Market Flag: Y Classification: Third Quarter Activities Report PLATSEARCH NL 2002-04-29 ASX-SIGNAL-GHOMEX - Sydney +++++++++++++++++++++++++CURNAMONA PROVINCE/BROKEN HILL, NSW and SABROKEN HILL PROSPECT GENERATION PROGRAMME (INCO OPTION JOINT VENTUREAGREEMENTS)REDAN, NSW - EL 5795, PLATSEARCH 80%, EAGLEHAWK 20%; INCO CAN EARN A60% INTEREST Systematic calcrete sampling over a 100 square kilometre area isexpected to commence during the June quarter.HOLLIS TANK, NSW - EL 5765, PLATSEARCH 8O%, EAGLEHAWK 20%; INCO CANEARN A 60% INTERESTMoving loop electromagnetic (MLEM) surveys have been completed overthe Great Goulbunn Mine prospect where calcrete sampling has defineda strong gold and copper anomaly extending over a 1.5 kilometrestrike length. The MLEM results show a conductor that is possibly dueto sulphides and is roughly coincident with the calcrete geochemicalanomaly. A RC percussion drilling programme to test this prospect isbeing planned and is expected to take place in late May 2002.MUNDI MUNDI, NSW - ELS 4656 AND 4657, PLATSEARCH 100%; INCO CAN EARNA 60% INTERESTA drilling programme at the Polygonum prospect has commenced. Theprogramme, consists of two deep core holes designed to test thenorthern extent of copper-gold and lead-zinc mineralisationencountered in previous drilling.MUNDI SOUTH, NSW - EL 4963, PLATSEARCH 100%; INCO CAN EARN A 60%INTERESTA percussion/core hole to 318 metres has been completed at theAnomaly 'B' prospect, The hole intersected a wide interval of albiticgneiss with abundant magnetite, frequent disseminated pyrite, K-feldspar and some brecciation. There were two weakly mineralisedzones of 10.9 and 16.2 metres width with 3-5% finely disseminatedpyrite. Selected intervals are being analysed currently.YANCO GLEN, NSW - EL 5764, PLATSEARCH 80%, EAGLEHAWK 20%; INCO CANEARN A 60% INTERESTMoving loop electromagnetic (MLEM) surveys have been undertaken overthe Allendale Mine area. Further MLEM surveys will be undertakenduring early May. Following the completion of this work andinterpretation of the results, consideration will be given to sitingdrillholes to test for extensions to the Allendale lead-zincmineralisation.LINDSAYS CREEK, NSW - EL 5704, PLARSEARCH 80% EAGLEHAWK 20%; INCO CANEARN A 60% INTERESTMoving loop electromagnetic (MLEM) surveys have been undertaken overthe Silver City prospect where a large deep-seated magnetic anomalyappears to be associated with anomalous C-horizon base metals values.Further MLEM surveys are required to complete the coverage of theprospect area and this work is expected to take place in May 2002.Following completion of the MLEM surveys and interpretation of theresults, consideration will be given to the siting of drilling totest this prospect.OTHER CURNAMONA PROVINCE PROJECTSCALLABONNA, SA - EL 2886, PLATSEARCH 100%; INCO CAN EARN A 60%INTERESTGravity surveys over the Anomaly 3 and Anomaly 5 prospects have beenplanned and the contractor is expected to mobilise in late April. In2001 Inco funded a deep drill hole on the Anomaly 5 prospectintersecting a complex alternating sequence of stronglymetasomatised, chlorite-altered, partly brecciated metasediments withminor calc-silicate, epidote alteration plus abundant disseminatedpyrite, magnetite, haematite and anomalous base metals. The Anomaly 5system shows evidence of intense hydrothermal activity and is largewith ample room for the existence of more strongly mineralised partswithin it.Anomaly 3 is one of the largest magnetic anomalies in the region andis located on a major tectonic structure. There has been no drillingat Anomaly 3. Drilling will take place in mid 2002 on either Anomaly3 or Anomaly 5 (the choice depending on the results of the gravitysurveys).QUINYAMBIE, SA -EL 2579, PLATSEARCH 50%, ALLENDER SYNDICATE 50%; INCOCAN EARN A 60% INTERESTThe first drill hole at the Dolores East prospect was completedduring the quarter, The drillhole (QBE-1) targeted a discretemagnetic anomaly considered to have a potential for Olympic Dam stylemineralisation, Pre-collar rotary drilling entered Proterozoicbasement rocks at 307 metres and core drilling extended the hole from112 metres to a final depth of 504 metres.The entire core drilled section comprises volcanic breccia. Thebreccia matrix contains abundant haematite, magnetite and K-feldsparalteration. Sulphides, mostly pyrite, are present in minor quantitiesthroughout. The rock type is strongly suggestive of a volcanic ventcomplex, with abundant haematite reflecting low temperatures.Analyses show that the entire core section is anomalous in copperaveraging 598 ppm over 192 metres from 312 to 504 metres (includingfour metres at 0.24% and one metre at 1.17%). A gravity survey hasbeen completed over the area and the results are being processedcurrently. It is hoped that the gravity results will provide guidancefor further drilling.In summary, the first drillhole has shown that this large volcanicvent system is strongly anomalous in copper and displays some of thekey features that characterise systems which host major copperdeposits, There are very few drillholes to Proterozoic basement inthe area, the closest being approximately 15 kilometres south, andthe Quinyambie drilling result opens up a new frontier in the regionwith exploration potential for large copper deposits. A newexploration licence (Frome ELA 060/02) covering 1,800 squarekilometres has been applied for to provide additional coverage of thesurrounding area,POVERTY LAKE, SA - ELA 198/01, PLATSEARCH 50%, ALLENDER 50%This recent licence application in the Curnamona Craton covers threediscrete magnetic anomalies located to the north-east of and similarto the Dolores East anomaly (Quinyambie Project).JACKS REWARD, SA -ELA 062/02, PLATSEARCH 100%A licence application was lodged in the March quarter and coversthree discrete magnetic anomalies located on the Benagerie Ridge inthe centre of the Curnamona Craton.MULYUNGARIE, SA - EL 2776, PLATSEARCH 80%, EAGLEHAWK 20%; SOUTHERNCROSS EARNING RIGHT TO MINE URANIUMA Memorandum of Understanding was signed with Southern CrossResources Australia Pty Ltd ("Southern Cross"), the Australiansubsidiary of Southern Cross Resources Inc, during the quarter.The Mulyungarie tenement is adjacent to Southern Cross' tenement EL2310 where Southern Cross is preparing to commence uranium productionat its Honeymoon mine. Information from previous exploration work inthe area indicates that the Tertiary age Yarramba Palaeovalley thathosts the sedimentary uranium at Honeymoon extends into PlatSearch'stenement.Under the agreement Southern Cross will have access to potentialTertiary uranium deposits in the palaeovalleys that may occur inPlatSearch's EL 2776. Southern Cross will fund an explorationprogramme commencing in May 2002 with an airborne electromagneticsurvey. In the event that economic Tertiary uranium is proven,PlatSearch and Eaglehawk will together be entitled to a 3% grossroyalty (PlatSearch 2.4%) from any commercial uranium production.PlatSearch and Eaglehawk retain rights to all commodities other thanuranium in EL 2776 which is prospective for large copper-gold andlead-zinc-silver deposits in Proterozoic basement rocks.COPPER KING, NSW - EL 5919, PLATSEARCH 8O%, EAGLEHAWK 20% This licence covers a 41 square kilometre area approximately 15kilometres east of Broken Hill, and embraces both Broken Hill Groupand Thackaringa Group rocks. PlatSearch's review of previous workshows excellent potential for Broken Hill style lead-zinc-silver,iron associated copper-cobalt-gold and leachable oxide copperdeposits. There are three key prospects in this licence. At the MtDarling Creek prospect old workings and gossan outcrops extend over astrike length of 2.5 kilometres with rock-chip sampling showingvalues up to 5.9% copper in outcrop. At the Native Dog prospect thereis a 500 metre thick sequence showing all the hallmarks of a classicBroken Hill Style (BHT) mineralised zone extending over a threekilometre strike length. Previous rock-chip sampling of gossans alongthis zone shows anomalous lead and zinc values up 7,000 ppm lead and4,000 ppm zinc. While there has been previous drilling at Mt DarlingCreek and Native Dog this drilling is considered to be too shallowand wide-spaced to have adequately tested these prospects. Of particular interest is the Copper King prospect where aeromagneticand ground magnetic data shows an untested strong magnetic anomalyassociated with numerous shallow oxide copper workings. The CopperKing area is one of the "first order target" prospects highlighted inthe NSW Department of Mineral Resources study "Cu-Au Potential of theBroken Hill Block". Discussions regarding this area are in progresswith several potential joint venture partners.PANAMA HAT, NSW - EL4 1849, PLATSEARCH 80%, EAGLEHAWK 20% Literature search and data compilation has continued during thequarter'. The Panama Hat area is one of the "priority target" areashighlighted in the NSW Department of Mineral Resources study "Cu-AuPotential of the Broken Hill Block". PlatSearch's review of previouswork indicates that the area contains the most extensive system ofgold bearing quartz, chert and quartz-magnetite units in the entireBroken Hill Block. Rock-chip sampling by previous operators on nineseparate prospects showed erratic but strong gold values on allprospects (up to 72.5 g/t). PlatSearch is continuing to compilerelevant data and identify prospects for further work. Discussionswith potential joint venture partners to fund ongoing work are inprogress.MINERAL SANDS, MURRAY BASIN, NSW - ELS 5330, 3512 AND PART OF 5478,PLATSEARCH 100%; ILUKA CAN EARN AN 80% INTEREST (MINERAL SANDS ONLY)Recent drilling on three drill lines has confirmed a minimum sevenkilometre strike length to the Mazar Prospect strand line. Theprospect is open to the north and south and may be the along strikeextension of the Magic Prospect identified by Iluka in the adjacenttenement to the east. The best intersection to date has been 125metres wide averaging 9.0% HM over 3.3 metres from a depth of 28metres. The prospect has a high value assemblage containing 73%ilmenite, 10% zircon and 2% rutile, with the ilmenite chemistryfavourable for production. Drilling has also confirmed a seven kilometre strike length to thelow grade mineralisation at the Budgeree Prospect. Several other lowgrade intersections have been achieved in the area. Follow updrilling is planned by Iluka in the next six months. Final assayresults are still awaited from the laboratory.BROKEN HILL PORPHYRY PROJECT, NSW - ELS 5330, 5478, 5512, 5515, 5528AND 5816, ELA 1769, PLATSEAREH 100%; NEWCREST CAN EARN AN 80%INTEREST Rotary/core drilling is expected to commence on selected targets inJune 2002. One of these targets is the Kudgee magnetic anomaly whereprevious drilling in 2001 using air-core failed to penetrate theoverlying sands. The Wahratta tenement EL 4659 was relinquishedduring the quarter.MORE TO FOLLOW
PLATSEARCH NL 2002-04-29 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++ GAWLER CRATON, SA
TOBY, SA - EL 2709, PLATSEARCH 50%, ALLENDER GROUP 50%; INCO CAN EARN A 60% INTEREST
Drill hole TBY-1 is sited on a magnetic anomaly and on the margins of an extensive and strong gravity anomaly. The pre-collar phase of drilling was completed to 261 metres in October 2001. The hole will be extended with diamond coring in the June quarter.
MIRIKATA, SA - EL 2802, PLATSEARCH 100%; INCO CAN EARN A 60% INTEREST
The potential of the Mirikata licence has been enhanced following the encouraging drilling results at Minotaur Resources' Prominent Hill prospect located approximately 20 kilometres ENE of PlatSearch's licence. In July 2001 PlatSearch completed one drillhole (MRK-1) on magnetic anomaly 'A2' intersecting a barren banded iron formation, brecciated in places, from 337 to 417 metres. During the March quarter PlatSearch completed detailed gravity surveys over the Mirikata licence. The gravity results show at least two strong anomalies that are likely to represent worthwhile drilling targets. One of these is partially associated with magnetic anomaly 'A3', has a magnitude of approximately 4 milliGals and strike length of two kilometres.
COONDAMBO, SA - EL 2819, PLATSEARCH 50%, PENINSULA EXPLORATION 50%; INCO CAN EARN A 60% INTEREST
The licence covers a large localised gravity anomaly of approximately double the areal extent and the same order of intensity as that associated with the Olympic Dam deposit some 120 kilometres to the north-east. Previous drilling in the area was too shallow to have tested the sour" of the main gravity anomaly. Negotiations with native title claimants and aboriginal heritage site clearance is progressing. Following completion of native title procedures, PlatSearch intends to drill a 350 metre hole to test the gravity anomaly.
MT CARULINA, SA - EL 2736 AND ELA 183/01, LAURA/ELLENDALE GROUP 100%; INCO CAN EARN A 60% INTEREST AND PLATSEARCH A 20% INTEREST
Negotiations with native title claimants and aboriginal heritage site clearance is progressing. Further processing and interpretation of the Mt Carulina geophysical data has been completed. The results indicate that the geophysical signatures (gravity and magnetic data) of Mt Carulina and Olympic Dam are very similar. A new licence (ELA 183/01) has been applied for to provide additional tenement coverage at Mt Carulina. Drilling will commence on completion of native title procedures.
TARCOOLA, SA - EL 2475, OXFORD RESOURCES PTY LTD 100%, PLATSEARCH EARNING 95%; ILUKA CAN EARN A 75% INTEREST
PlatSearch NL signed a Joint Venture Agreement with Iluka Resources Limited during the quarter. The principal target of the joint venture is hard rock titanium mineralisation. The Tarcoola tenement covers the Muckanippie Anorthosite Complex (massif-type). Nearly all of the titanium mined worldwide currently comes either directly from magnetite-ilmenite ore bodies associated with massif-type anorthosite complexes (such as LacTio in Canada and Tellnes in Norway) or indirectly from placer deposits derived from the weathering of these complexes.
Magnetic and gravity geophysical methods can assist in identifying such titanium deposits, owing to the typically high magnetic susceptibility and density of the ore material. An intense linear magnetic anomaly and an associated localised strong gravity anomaly havc been defined the Wigetty prospect where previous shallow drilling nearby has identified anomalous TiO2 up to 11% and a rock-chip sample of outcropping ironstone has returned an analysis of 40% TiO2.
The agreement provides for Iluka to earn a 75% interest in the tenement by completing expenditure of $1,000,000 within four years. Iluka must complete a drilling programme consisting of at least 800 metres of percussion drilling to test gravity and magnetic anomalies at the Wigetty Prospect within the first six months of the agreement. When Iluka has earned a 75% interest PlatSearch, Oxford and Gunn will have respectively 16%, 5% and 4% interests free- carried to completion of a favourable, bankable, feasibility study. Each of PlatSearch, Oxford and Gunn can elect either to participate in the project or convert its participating interest to a gross royalty interest.
MT ISA BLOCK, QLD
LILLEYVALE, QLD - EPM 12115, PLATSEARCH 100%; INCO CAN EARN A 60% INTEREST
A detailed gravity survey will commence over the Lilleyvale prospect in late April 2002. Further drilling to test this large mineralised ironstone system will be considered following completion and interpretation of the gravity results.
HORSE CREEK, QLD - EPMS 13303 AND 13304, PLATSEARCH 100%; BHP BILLITON CAN EARN A 70% INTEREST
In late April 2002 BHP Billiton commenced a drilling programme to test six Cannington style "look-alike" targets. The Horse Creek area is located in the southern parts of the Mt Isa Block, approximately 65 kilometres south of the world class Osborne and Cannington base metals deposits. BHP Billiton completed airborne gravity (Falcon system) and detailed prospect geophysics and geochemistry in 2001 leading to the definition of six prospects of interest. There are no drilling results available at this stage.
OTHER PROJECTS
PlatSearch has relinquished the Corona EL 5480 and Wahratta EL 4659 licences. Delta Gold Exploration has advised that they wish to withdraw from the Kalabity joint venture effective as at 16 May 2002. There has been no significant work or developments on other projects during the quarter.
FINANCIAL
Cash expenditure by PlatSearch on exploration for the quarter was $23,000. Expenditure by joint venture partners on the Company's projects was $276,000. Cash funds available at the end of the quarter were $338,000, which includes the balance of funds received from Inco Limited from cash calls under the Option Joint Venture Agreements to fund budgeted joint venture expenditure. An amount of $394,000 was received from Inco in April 2002 and represents anticipated joint venture funding for the June 2002 quarter. The Company has no borrowings.
B Richardson MANAGING DIRECTOR
The information on mineralisation contained in this report accurately reflects information compiled by R L Richardson, BSc, BE(Hons), MAusIMM, MASEG, Managing Director of PlatSearch NL a Competent Person (as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves), who has relevant experience in relation to such mineralisation and has consented to the includsion of such information in this report.
