Gunnedo Project (E69/2825)

The Project area is located within the Eucla Basin approximately 450km east of Kalgoorlie, lies partly on the Gunnedorah Pastoral Lease and covers an area of 132km². Access is along the Transcontinental Railway line.

Previous exploration is limited and includes aeromagnetic and gravity surveys and two partly government funded (50%) diamond holes drilled to a depth of 400m each. The explorers were targeting possible nickel sulphide mineralisation within a north easterly trending zone of magnetic anomalies coincident with a gravity high. No significant nickel mineralisation was intersected. UOG believe the basement is the Achaean Craton and is targeting base metals and gold and will review all the data and core collected from the holes, with a view to utilising the holes for a possible down hole EM survey to detect any deep conductors and possible mineralisation. The targets are deep and are based on geophysical responses such as gravity and magnetic.

UOG are new to the area but major companies such as Teck have been exploring in the area for several years. An initiative by the state government helps to co-fund exploration drilling and is part of the Exploration Incentive Scheme (EIS) funded from Royalties for Regions. As part of this initiative four deep holes will be drilled in the area during the coming year, two by Teck Australia, one by Richmond Mining Ltd and one by General Mining Corporation. This exploration area is grass roots and new but the potential is for large deposits.