The Baggaley Hills Project exploration licences are located along a magmatic corridor on the margin of the Musgraves Block, at the intersection of major crustal lineaments. Targets within the project include two major coincident gravity and magnetic anomalies and several bullseye, circular magnetic features defining Olympic Dam-style IOCG-type targets (including The Twins). Geophysical modeling by Newmont in the early 2000s validated a magnetic source not simply explained by the host rocks of the area, and enhanced the likelihood of IOCG deposits along the corridor.

Numerous pipe- and dyke-like Giles Complex intrusions (including the Antlion Intrusion) are also present within the tenement area and are prospective for Ni-Cu-PGE deposits. The 5km diameter circular Antlion Intrusion (part of the Giles Complex) has remarkable geological and geophysical similarities with the Keivitsa Intrusion in Finland, host to the 432Mt Ni-Cu-PGE Keivitsa Deposit. Recent work by Pepinnini Minerals Limited at a similar sized Giles Complex Intrusion at Mt Harcus, 100km east of Antlion, revealed massive sulphide associated with Cu mineralisation.

Baggeley Hills - Antlion Comparison

Comparison between the architecture of the Antlion Intrusion in the West Musgraves and the Keivitsa Intrusion in Finland.

A detailed 100m spaced low-level aeromagnetic survey flown by Redstone Resources in late 2007, in conjunction with DOIR (Department of Industry and Resources), highlighted numerous targets in the Project area, and adjacent to Redstone's previous tenement package. Two new tenements totaling 640.4km2 were acquired in late 2007 based on interpretation of the magnetic data and all tenements have now been granted.

Baggeley Hills Magnetic TMI Targets

A meeting with the Traditional Owners in May 2008 proved successful with an access agreement being negotiated over the entire project area (seven large exploration tenements) totaling 1668km².

New Government gravity data (Western Australian Department of Industry and Resources - Geoscience Australia) which was released on the 7th August 2008 over the Baggaley Hills Project (100% owned by Redstone Resources Ltd) was acquired in September, and this data has significantly enhanced a number of airborne magnetic targets, confirming the potential for Olympic Dam-type IOGC deposits. The 2.5km spaced gravity shows eight circular gravity targets with coincident airborne magnetic highs (IOCG prospective) and several gravity targets without magnetic signatures (Voiseys Bay style Ni-Cu-PGE targets).

Baggeley Hills Gravity

Initially two days were spent on the Project area using a helicopter to conduct reconnaissance evaluations and sampling. 72 Soil (DLag) surface samples were collected on 1km spaced lines by 100 to 200m centres on the Antlion Intrusion. The lines covered the western portion of the intrusion, where a complex magnetic feature was deemed to be the principal target. The samples were assayed in the field with the handheld XRF (Niton), defining a 5km long anomaly of Cu at a 100ppm lower cutoff with peak values of 523ppm, 421ppm, 369ppm and 251ppm defining a central anomalous zone over 2.5 km long. Peak PGE + Au results include 284ppb, 252ppb, 200ppb and 64ppb PGE + Au, from two different lines spaced 1km apart, overlapping with the Cu anomaly. These samples are extremely anomalous representing the highest platinum-palladium results Redstone has ever received for over 7900 DLag samples taken in the West Musgrave region during the course of its exploration over the last two years.

Rock chip sampling was conducted independently of the surface soil (DLag) sampling at Antlion. 21 rock chip samples were assayed in the field with the handheld XRF (Niton) yielding peak results of 0.292% Cu and 0.140% Cu spread over 3.5km.