LOCATION & ACCESS: Located 260klms N.W. Cairns (4-½ hour drive) and 100 klms west of the Mareeba-Cooktown section of the Peninsula Development Road. Mareeba and Atherton are the nearest industrial and retail service centres. Cairns International airport connects to 31 national and international destinations.

The project leases are located on Mt Mulgrave and Palmerville cattle stations. Access is by Hurricane/Karma Waters Road off the Peninsula Development Road to Hurricane Road leading to Groganville; then by registered mine-access roads. Mareeba Shire annually grade the road to the Groganville turn-off. Acccess may be restricted for short periods during wet season (December to March)

The following sections are a quote fro CR20418(A to P 4048) Hamilton. G, 1988 Solomon Pacific Resources NL (reference)
REGIONAL GEOLOGY – The area is underlain by Middle Devonian to Lower Carboniferous rocks of the Hodgkinson Formation. This formation is a thick accumulation of micaceous greywache, siltstone and slate with the intercalcations of basic volcanics, cherts and conglomerates. These lithologies have been metamorphosed to greenschite facies and are steeply folded and strongly cleaved.

LOCAL GEOLOGY
The principle lithologies making up the Hodgkinson Formation in this area are the strongly cleaved phyllites and sandstones which, being the least resistant units, are exposed only with in the creeks. Areas between the creeks, along the ridges and spurs are generally covered in quarts and chert float derived from pyritic quartzites (recystallized chert), cherts and the quartz veins and quartz fault infilling which form the more resistant interfluves.

Gary Donovan (owner) has mined and prospected the area over a 28 year period, culminating in securing rich alluvial ground. Mr Donovan has an intimate knowledge of the subject area and its history. He was Operations Manager for Madden ResourcesNL (AUR/ADR) 1988/89) and worked for CRA as Operations Manager at Mt Kare in the highlands of Papua New Guinea. Using this experience, the Donovan family has mined in the area for 27 years and accumulated significant leases and exploration areas for future production.

In the historic account of mining in the Palmer River goldfields including the watersheds of McGann’s and Kennedy’s the following excerpt makes interesting reading– in 1874 an estimated 10000 men busily working the rich alluvial gravel the Palmer River recorded production of between 1-2 million ounces of gold from 1878 through to the early 1880s.
In the historic account of mining in the Palmer River goldfields including the watersheds of McGann’s, Kennedy and Cannibal Creeks. (ref: de Havelland D published 31.12.1986) .

HISTORIC EXPLORATION HISTORY
Company Reports (CR) are available through Queensland Mines Department (GEORES);using relevant EPM numbers. See attached appendices.

Historically, exploration and drilling for hard-rock has been carried within the subject area by several companies; BHP, Strike Exploration, Carpentaria Gold, Shell, Solomon Pacific to name a few. Donovan’s held a JV with BHP for over 9 years under EPM:9795 (Kennedy’s,McGann’s/Jabiru Creek area) under which extensive exploration was carried out within the subject areas. BHP withdrew when they joined BHPBilliton as at that time as their focus was away from gold.
HISTORIC COMPANY REPORTS AVAILABLE ON REQUEST