Hopefully the Super Tax will be directed to drilling programs...

Hopefully the Super Tax will be directed to drilling programs that are held up by major mining companies. As the major companies have signalled that they are prepared to stop exploration until they are given a huge tax break [they can go to another country, but we can't]




19 May 2010
Argo secures PACE* funding drilling support
Melbourne, 19 May 2010 - Argo Exploration Ltd (Argo; ASX Code AXT) announced
today that application for Round 6 PACE* support for its Oak Dam South project was
successful. A grant of $60,000 has been awarded towards the cost of a diamond drilling
program, expected to commence this quarter, under the Argo - Xstrata Copper Joint
Venture. The quantum is additional to agreed expenditure under the JV.
The Oak Dam South geophysical target is considered to be a high priority target within the
Intercept Hill tenement with the potential to host a significant IOCG mineralized system.
The target presents as a prospective, structurally associated, magnetic-gravity response in
close proximity to BHPs Oak Dam resource (560Mt of iron oxide-copper-gold-uranium). It is
centred on a residual gravity feature located 5 kilometres south of Oak Dam and 3.5
kilometres north of Jenner Hill (Fig. 1).
Figure 1: Residual gravity image highlighting the untested Oak Dam South gravity anomaly. The
modelled depth of basement is presented as contours.
A large, moderate-magnitude residual gravity feature occurs on the margin of a moderatestrength
magnetic feature at the intersection of a magnetically-enhanced NE-trending
structure and a series of northwest trending gravity features (Figs 1 and 2). This residual
gravity anomaly is suggestive of a hematite IOCG alteration system. The Oak Dam South
prospect occurs in the eastern part of Argos EL 4164 where modelling of the basement
suggests that the cover is ~600m deep.
Figure 2: First vertical derivative magnetic image of the Oak Dam South area highlighting the
location of the untested Oak Dam South gravity target (See Figure 1) immediately adjacent to a
northeast trending magnetic corridor. The modelled depth of basement is presented as contours.
The basement geology of the Oak Dam South area is poorly understood due to the lack of
drilling in the area. Magnetic and gravity data has been employed in interpreting the
basement geology. It is postulated that the Oak Dam South target is hosted in
metasediments of the Wallaroo Group that have been intruded by Hiltaba Granite
equivalents.
A number of major structures are apparent in the gravity and magnetic data with the Oak
Dam South gravity feature interpreted to be located at the intersection of a major northwesttrending
and a northeast-trending structures.
Re-modelling of Argos detailed magnetic and gravity data is in progress to assist in
developing and better refining drill targets in the area. Follow-up EM soundings may also be
warranted to test for conductors in the local area.
* PACE The PACE (Plan for Accelerating Exploration) program is an initiative of the South Australian
Government administered by Primary Industries and Resources SA (PIRSA). Applications for funding
support are internally and externally peer reviewed with only the highest quality exploration proposals,
based on sound technical, scientific and commercial criteria, being supported.