Mount Mackenzie & Ten Mile Creek Copper/Gold Projects

Mount Mackenzie

Exploration carried out in the area prior to 1970 has been summarized by Paine and Cameron (1972) and Paine et al (1974). The principal exploration activity was for porphyry copper and molybdenum deposits as described by Horton (1978, 1982) and Lacy (1981). These include Mt Abbott (Perkin and Liverton, 1970; Zerwick, 1976; Hunter, 1982) and Euri Creek (Boyd, 1976).

In 1972 Otter Exploration discovered a high-level Cu-Mo anomalous polyphasal intrusive complex at Otter Ridge at the NW end of the MSZ. After detailed mapping, soil and rock geochemistry and an IP survey, five percussion and diamond drill holes were drilled for a total of 839m to test the area but the results were disappointing (Burban,1974).

Western Mining Corporation (WMC) explored the Bowen region during 1988-1989. In the Mount Mackenzie area work comprised regional stream sediment sampling and rock chip sampling and mapping which resulted in the discovery of a number of zones of veining and alteration. The principal anomalies were followed-up with more detailed mapping and sampling but no economic deposits were found and the tenement was relinquished in 1989.

Ten Mile Creek

The area of the 1:250,000 Bowen Sheet was mapped by joint field parties of the Commonwealth Bureau of Mineral Resources and the Geological Survey of Queensland in 1961 and 1964-65.

The region has been prospected since the turn of last century with most modern exploration having been undertaken in the period 1970-1997. A number of companies have worked the area and details of their results are located in the relevant reports listed in the References section. During this time the licence area has been covered by airborne geophysics and extensive stream sediment sampling, with localized rock and soil sampling at the principal prospects but no significant mineralisation has been discovered.

Mount Mackenzie & Ten Mile Creek Projects – Project Mineralisation and Exploration Potential

The MSZ is characterized by extensive shearing and faulting, localized zones of strong
alteration, breccia pipes, high-level intrusives and locally mineralised mesothermal
quartz veins which are often associated with intermediate and felsic dykes, especially
microgranite.

Assay results show Ag, Cu, Bi, Pb, Mo, Au are most commonly
anomalous while Sb, As and Zn are rarely anomalous. The anomalous mesothermal metal
suite indicates that the basement granites are relatively deeply eroded and that
the mid- to lower levels of mineralised zones are now exposed. The altered microgranite
with well developed pyritic D veins in the Hill 122 South area may be indicative
of proximal buried porphyry intrusions. D veins are often emplaced during the last
stage of vein formation in porphyry systems and typically occur in the wall rocks
outside the source porphyry.

Additional supporting evidence for an intrusion in
this area is a reported breccia pipe discovered by Otter to the NW of Hill 122.
KER results to date indicate that the best potential for significant economic mineralisation
is in the Otter Ridge porphyry Cu-Mo system which is characterized by polyphasal
high-level intrusives anomalous in Cu and Mo. Five Otter Exploration drill holes
intersected extensive alteration and zones of anomalous Cu and Mo associated with
quartz veining. A more comprehensive review of the old Otter Exploration data is
required to re-evaluate the potential of the prospect. The extensive database includes
stream sediment and soil geochemistry, lithological and alteration mapping, and
IP survey and drilling data.

This information should be integrated to establish
vectors that may lead to the identification of a significantly mineralised system
beneath, or lateral to, the existing alteration and geochemically anomalous zones.
If the results of the initial review are encouraging KER follow-up could include
a series of traverses across the system to collect samples for XRD or PIMA analysis
to establish alteration assemblages to assist in modeling and targeting. A structural
analysis should also be undertaken.

Ten Mile Creek

KER exploration has confirmed the results of previous
explorers in identifying the area of principal interest in the north of the tenement.
The majority of prospects lie within the MFZ and mineralisation at most of these
is structurally controlled and generally associated with quartz veins in shears
and/or dykes.

Erosion levels dictate the styles of mineralisation observed
in the area and appear to be too deep to allow for the preservation of epithermal
systems. A number of prospects are located in the basement granites where mineralisation
is mesothermal and limited in extent. However, in less deeply eroded areas underlain
by Bulgonunna and Lizzie Creek volcanics, potential remains for porphyry Cu or Mo
systems and high grade mesothermal mineralisation.

The principal remaining areas
of interest are on the western side of the MFZ particularly along strike of the
NE-SW trending Pandanus fault zone to its intersection with the Oakey Creek Fault
and into the syenite to the west. Potential for significant mineralisation also
remains around the WMA and nearby Gully prospect and the strong magnetic anomaly
to the northeast of Parrot Creek prospect. Additional mapping and sampling is recommended
to the SW of Pandanus along the NE-SW trending Pandanus fault zone, particularly
in the area of its intersection with the Oakey Creek Fault and into the syenite
where both Terrasearch and KER have located anomalous Au, Ag, Pb, Zn, Mo in stream
sediment and BCL samples (figure 3).

The Terrasearch Pb and Zn stream sediment anomalies
to the north of the Gully prospect require follow-up to establish any relationship
with the BCL Au anomalies in creeks draining the diorite intrusion (figure 3). The
magnetic anomaly to the northeast of Parrot Creek also warrants further investigation
to identify source lithologies and any relationship they may have to the alteration
zone at the prospect. Grid soil sampling is recommended over Native Copper Show
to establish the size of the anomaly which appears to extend under shallow cover
to the north of the main mineralised zone.