Spear Project

The tenement is located 20 kilometres north of the township of Pentland on the Flinders Highway west of Charters Towers, in north Queensland. Access is by an unsealed track which leaves the Flinders Highway 3 kilometres west of the Cape River Bridge and runs northwest to Mount Stewart homestead.

The  Brilliant Brumby  Mine  was discovered  and  worked  from  1937 to  1940,  and sporadically thereafter in 1947 and 1961. Total recorded production is 790 ozs (24.6 kg) from 950 tons of ore. Mineralisation  at the Brilliant Brumby Mine is hosted by quartz veining trending north-south, in contrast to the general NE-SW trend of major faults and lineaments.

Sampling around and to the south of the Brumby workings  located more workings not marked on the geological sheets and apparently not under claim; also located was a quartz reef displaying similar characteristics to those at the Brumby. Samples fi:om this reef (1-1.5 m x 300 m) were anomalous, ranging from 0.11 g/t to 4.96 g/t Au, and averaging 0.95 g/t Au.

The Surprise Mine is a prospect  appears not to have been worked for many years.  The  workings are of  limited  strike  extent  but  alteration  exists  over a reasonable width, in the order of 50 m. The alteration zone was found to carry 0.16 g/t Au, the qurutz 1.07 g/t Au.

The Lolworth  granite appears to contain potential for small to medium  sized mesothermal vein occurrences of the type found at the “Brilliant Brumby’. In particular the western fork of Mundic Creek requires follow-up ofthe anomalous va lues obtained  and the repmted pits. Particular  interest should be paid to areas marginal to the Mundie complex as existing mineralization  may well have been re-mobilised to higher grades.

InterGroup Mining therefore believes that the Pentland District is highly prospective  and warrants further exploration for vein style and porphyry related breccia hosted deposits.

The majority of the area is underlain by granitoids of the Lolwmth Igneous Complex  (Fig. 3). This is regarded as a postorogenic batholith. It consists mainly of massive biotite adamellite and granodiorite, but a zone of banded pegmatit ic and aplitic garnet-muscovite granite and adamellite occurs on the eastern margin. Dykes of gametiferous  muscovite pegmatite, granite and aplite are abundant within the complex. The age of the complex has been radiometrically dated as ranging from Upper Silurjan to Lower Devonian (Vine and Paine, 1974).

To the east of the EPMA,  the Mundie Igneous Complex  intrudes the Lolworth Complex. This complex is a group of subvolcan.ic stocks, bosses, dykes and minor volcanics. The main body is a microgranite epixonal stock  forming  Mt. Stewrut. The  complex probably is the sorce of gold and minor base metal renationalisation at Mt. Stewrut and Lolworth to the north of the Authority.

Both  the Lolworth  and  Mundie  Igneous  Complexes  are  overlain  by the Tertiary  (Pliocene) Campaspe Beds. The Campaspe  Beds comprise clayey  and gritty sandstone, conglomerate  and siltstone. The presence of fossil alluvial gold near the base of the Crunpaspe Beds in the Cape River Deep Lead suggest that these outcrops should be regarded as a prospective target  for gold exploration.

Unique Position of InterGroup Mining to Optimise Future Exploration  in the Spear Project EPM Application Area

InterGroup Mining are the beneficial owners of the past 30 years of exploration  results and expertise carried out over the Pentland District covered by the Spear Project EPM Application.

InterGroup Mining will have access to the complete  open file exploration  data base. Terrasearch also has access to numerous additional technical  reports  and data as well as the exploration expertise and support  built up  over  twenty  years exploring  within  North Queensland  and  more specifically  the Pentland District.
Targets within the Project Area

The principal aim of The Spear Project EPM application  is to continue to explore for vein/stockwork precious metal mineralization.

Two target areas have been identified for ground follow up (fig 12), the area west of Brilliant Brumby Mine  along  north east  – south  west trending  fault  and the area in no1th of  application  area where previous work returned anomalous gold in stream sediment sampling.

There is an excellent chance that future exploration will locate more substantial deposits by utilizing the high quality geophysical, TM and geochemical  data sets now available.  Successful target generation could follow the identification of conducive plumbing systems which have focused fluid flow into the intrusives. Overlay of these plumbing systems with the reinterpretation of geology and the other data sets will underpin the next phase of exploration over the Spear Project area.

Previous discoveries have been made by the successful application of exploration techniques such  as  surface  geochemistry,  electrical  geophysics,  geological  mapping,  bedrock  RAB drilling  and target drill testing.   With the advances in geophysics,  especially  airborne and ground   magnetics  systems,  complemented   by  TM  imagery  and  extensive  geochemical datasets as well as new and revised models of mineralization InterGroup  Mining still regard the area as being highly prospective.

The  30  year  exploration  history  by  both  major  and  junior  companies   available  to  the company  will act as a “springboard” to fast track exploration on the most prospective areas including  previous mines. The local exploration expertise and previous  history working on these areas by Terrasearch gives the company a competitive advantage  in exploration within the Pentland District.