WORK PROGRAMMEAusQuest has a portfolio of iron, nickel, gold and...

WORK PROGRAMME
AusQuest has a portfolio of iron, nickel, gold and diamonds projects (Figure 1) across
Australia with a focus on bringing an innovative and scientifically rigorous approach to
exploration targeting the discovery of world-class deposits and new mineral provinces.
During the quarter, field work included:
q reverse circulation (RC) and diamond drilling at the Drummond gold project in
Queensland,
q geological mapping and sampling at the Nameless iron prospect near Tom Price and
within other drainage systems in the Tom Price-Paraburdoo region of WA;
q trial gravity surveying at the Rocklea iron prospect, also in the Pilbara region of WA;
q site clearance work for future drilling programs at the Rocklea and Nameless prospect
areas; and
q the acquisition of airborne magnetic and radiometric data over the Sylvania project,
Field work planned in the December 2005 quarter will include:
q detailed mapping and sampling of the iron pisolite mineralisation at the Nameless
prospect,
q reconnaissance mapping and sampling at the Sylvania iron and nickel project near
Newman;
q GEOTEM surveying (7,000 line kms) at the Table Hill nickel project,
q mapping and sampling nickel prospects within the Bellary project, and
q initial field work (sampling and ground magnetics) at the Plenty River diamond project,
east of Alice Springs.
WORK PROGRAMME
AusQuest has a portfolio of iron, nickel, gold and diamonds projects (Figure 1) across
Australia with a focus on bringing an innovative and scientifically rigorous approach to
exploration targeting the discovery of world-class deposits and new mineral provinces.
During the quarter, field work included:
q reverse circulation (RC) and diamond drilling at the Drummond gold project in
Queensland,
q geological mapping and sampling at the Nameless iron prospect near Tom Price and
within other drainage systems in the Tom Price-Paraburdoo region of WA;
q trial gravity surveying at the Rocklea iron prospect, also in the Pilbara region of WA;
q site clearance work for future drilling programs at the Rocklea and Nameless prospect
areas; and
q the acquisition of airborne magnetic and radiometric data over the Sylvania project,
Field work planned in the December 2005 quarter will include:
q detailed mapping and sampling of the iron pisolite mineralisation at the Nameless
prospect,
q reconnaissance mapping and sampling at the Sylvania iron and nickel project near
Newman;
q GEOTEM surveying (7,000 line kms) at the Table Hill nickel project,
q mapping and sampling nickel prospects within the Bellary project, and
q initial field work (sampling and ground magnetics) at the Plenty River diamond project,
east of Alice Springs.
WORK PROGRAMME
AusQuest has a portfolio of iron, nickel, gold and diamonds projects (Figure 1) across
Australia with a focus on bringing an innovative and scientifically rigorous approach to
exploration targeting the discovery of world-class deposits and new mineral provinces.
During the quarter, field work included:
q reverse circulation (RC) and diamond drilling at the Drummond gold project in
Queensland,
q geological mapping and sampling at the Nameless iron prospect near Tom Price and
within other drainage systems in the Tom Price-Paraburdoo region of WA;
q trial gravity surveying at the Rocklea iron prospect, also in the Pilbara region of WA;
q site clearance work for future drilling programs at the Rocklea and Nameless prospect
areas; and
q the acquisition of airborne magnetic and radiometric data over the Sylvania project,
Field work planned in the December 2005 quarter will include:
q detailed mapping and sampling of the iron pisolite mineralisation at the Nameless
prospect,
q reconnaissance mapping and sampling at the Sylvania iron and nickel project near
Newman;
q GEOTEM surveying (7,000 line kms) at the Table Hill nickel project,
q mapping and sampling nickel prospects within the Bellary project, and
q initial field work (sampling and ground magnetics) at the Plenty River diamond project,
east of Alice Springs.
PROJECTS
IRON ORE
Nameless Prospect
(100% AQD)
The Nameless iron prospect is located 5
kilometres north west of Tom Price in the
Pilbara region of WA.
Reconnaissance mapping and sampling
during the quarter identified outcropping
channel-fill pisolitic iron mineralisation
over a strike length of 15 kilometres from
the south eastern corner of the tenement to
the Nannutarra-Wittenoom road (figure 2).
The channel appears to vary in width from
200 metres in the east, where it cuts
through the Marra Mamba Iron Formation,
up to 500 metres over the majority of its
strike length. In places detrital iron
mineralisation occurs along the margins of
the channel.
Analyses of 12 pisolitic iron samples
collected along the strike length of the
channel returned high iron grades (55 to
58% Fe) with variable Al2O3 (1.4 to 5.5%)
and SiO2 (2.1 to 5.9%) levels and low
phosphorous (<0.05%).
Wood fragments identified within these
samples are diagnostic of channel- or
valley-fill material and confirm correlations
being made with the Robe Pisolite which is
mined elsewhere in the Pilbara.
The Company is very encouraged by these
surface results, particularly in light of their
close proximity to existing infrastructure
(rail, road and power) and iron ore mining
operations.
The Nameless tenement is currently in the
application stage although a Heritage
agreement has been signed with the Native
Title claimants to enable it to be granted
early in 2006. Site clearance work has
already been completed to allow drilling to
commence shortly thereafter.
A comprehensive follow-up program of
sampling and mapping has commenced
with results expected during the December
2005 quarter. Planning is also underway to
commence a drilling program covering the
entire 15km length of the channel as soon
as possible after title is granted.
Rocklea Prospect
(75% AQD)
The Rocklea iron ore prospect is located
40 kilometres west of Tom Price and
straddles the Nannutarra-Wittenoom road.
Whilst the initial drilling program
completed during the June 2005 quarter
only intersected good iron, alumina and
silica grades on one of the three sections
drilled, the channel was shown to continue
both east and west of the present drill
coverage.
Further assessment of drill results and
compilation of geological and digital terrain
data carried out during the September
quarter has better defined potential
extensions to the pisolitic channel and
further scout drilling is planned to test these
extensions.
A trial gravity survey over the prospect
helped to define the channel.
Site clearance work for drilling has been
completed with drilling scheduled to be
incorporated as part of the planned drilling
program at the Nameless prospect in early
2006, as outlined above.
Tom Price – Paraburdoo Prospects
Initial reconnaissance mapping and
sampling at the Tom Price South,
Panhandle and Airport prospects has
identified sporadic outcrops of pisolitic iron
mineralisation highlighting further potential
for channel iron-style deposits in the
region. Available data are being collated to
outline possible channels for further ground
checking and scout drilling in 2006, once
titles are granted.
The Company controls approximately 30
kilometres of potential pisolite iron bearing
channels in this region (figure 3).
Sylvania Project
(100% AQD)
The Sylvania Project is located
10 kilometres south of Newman in the east
Pilbara region of WA. It covers a major
drainage system which the Company
believes has potential to contain channel
iron mineralisation, immediately south of
the Whaleback iron ore mining district.
The drainage system is approximately 25
kilometres long and has no previously
recorded history of iron exploration.
During the quarter, detailed aeromagnetic
and radiometric data were acquired with the
magnetic data outlining a number of
channel-like features which will be the
focus of reconnaissance mapping and
sampling in November.
Digital imagery and terrain data were
acquired to assist in definition of the
potential channels.
NICKEL
Beasley Project
(100% AQD)
The Beasley project is located
50 kilometres west of Tom Price in WA.
Analyses of core from diamond drilling
completed during the previous quarter
returned a best assay of 0.61% Ni, 0.26%
Cu, 254ppm Co, 341ppb Pd and 62ppb Pt
from hole BNDH07, the westernmost hole
drilled during the programme.
The above analysis occurs within a 15
metre section of ultramafic containing
patches of disseminated magmatic
sulphides (1 to 5%), and reflects the high
metal tenor of the sulphides intersected.
Comparisons between Beasley and the
Raglan nickel district in Canada continue to
emerge, both in their geological setting and
now in the metal tenor of the sulphides
identified. At Raglan similar disseminated
sulphides occur marginal to their massive
sulphide deposits.
Interpretation of down hole electromagnetic
data has identified a subtle off-hole
anomaly north of, and down dip from, hole
BNDH07. This hole was sited on the
eastern flanks of a strong magnetic
response which drilling data (a direct
correlation between MgO content and
magnetic susceptibility) now indicate may
be a major channel-way within the
ultramafic sequence and, as such,
represents a prime target area for massive
nickel sulphide mineralisation (figure 4).
Further work in this area, including drilling,
is being planned as a matter of priority.
Discussions have been initiated with
several companies which have expressed
interest in the project with regard to
potential future funding of work in this
area.
Bellary Project
(AQD 75%)
The Bellary project is located 20 kilometres
north west of Paraburdoo in WA and covers
a 40 kilometre long belt of untested
ultramafic rocks which correlate, at least in
part, with the prospective ultramafic
sequence at Beasley.
The important geological information being
gathered at Beasley is also being applied at
Bellary. The use of magnetic data to
identify prospective channel locations
along the ultramafic strike, and stream
geochemistry to highlight areas of
anomalous Ni-Cu-PGE’s, has enabled areas
to be prioritised for follow-up.
Digital imagery and terrain data were
acquired during the quarter to assist
geological mapping and sampling in these
areas, which will be undertaken during the
December 2005 quarter.
Table Hill Project
(100% AQD – Falconbridge Farm-in)
The Table Hill project is located 200
kilometres east of Newman in WA.
Exploration is targeting Noril’sk style
nickel sulphide mineralisation within a
feeder system to the regionally extensive
Table Hill volcanics.
Boundaries and specifications for a
GEOTEM survey were finalised during the
quarter with approximately 7,000 line
kilometres of airborne electromagnetic data
scheduled to be acquired during the
December quarter.
The GEOTEM technique, which was tested
by AusQuest in late 2004, was found to
work extremely well for massive sulphide
target determination in this area. It is
anticipated that the planned survey, which
covers approximately 2400 km² of the
project area, will provide a bank of targets
for follow-up drilling in 2006.
Antrim Project
(100% AQD)
The Antrim project is located in the East
Kimberley region (WA) and the Kalkarindji
region (NT). Exploration is targeting
Noril’sk style nickel sulphide
mineralisation associated with the extensive
Antrim Plateau basalts.
Regional gravity data acquired over the
Neave fault and the Birrindudu 1:250,000
sheet to the south were received and
processed to identify possible intrusive
rocks beneath the Antrim basalts which
could be targets for nickel sulphide
mineralisation. Several target areas were
outlined.
GOLD
Drummond Project
(100% AQD - Rio Tinto claw back)
The Drummond gold project is located
300 kilometres southwest of Mackay in
central Queensland.
Reverse circulation and diamond drilling
(total of 7 holes/1060 metres) was
completed during the quarter to test the
Wildhorse prospect where sulphidic quartz
drill chips containing 1.2 g/t Au had
previously been found at an old water bore
site.
No significant gold assays were reported
from the drilling, which intersected a thick
sequence of conglomerates, sandstones and
black shales with no sign of quartz vein
material or associated alteration. The
highest assay value of 0.2 g/t Au occurred
within a pyritic conglomerate unit and may
reflect nearby mineralisation.
The gold-bearing pyritic quartz vein
material targeted by this program appears
to occur as pebbles within the conglomerate
rather than as veins, as had been predicted.
The project is currently under review
although a number of targets which were
originally identified for follow-up, still
remain to be tested.
Horsetrack Project
(100% AQD)
The Horsetrack gold project is located
120 kilometres south of the +27 moz Telfer
gold mine in WA.
No field work was undertaken during the
quarter but discussions were held with
several companies which expressed interest
in the project. A low order gold anomaly
extending over 12 kilometres and coincident
with interpreted faults and magnetic
intrusions had been identified by earlier
reconnaissance sampling.
DIAMONDS
Plenty River Project
(100% AQD - Rio Tinto Farm-in)
The Plenty River project is located
230 kilometres east of Alice Springs (NT)
on the north west margin of the Simpson
Desert. AusQuest is targeting a new
diamond field with more than 50 potential
kimberlite targets interpreted from detailed
aeromagnetic data.
Initial field work over 15 targets involving
surface sampling and ground geophysical
surveys is scheduled to commence in
November 2005 pending the outcome of
site clearance work currently underway and
the grant of the tenements, which is
expected early in the December 2005
quarter. This will enable targets to be
prioritised for drilling in 2006.
CORPORATE
The company’s cash balance as at
30 September 2005 was approximately
$2.5 million.
Graeme Drew
Managing Director