EPM 26891 - PALMERVILLE HOME VALLEY 

Location and Access

EPM 26891 is situated in Far North Queensland, approximately 145 km north of Chillagoe along the Bourke Developmental Road and 170 km west-northwest of Cairns. Access to the tenement is provided via a network of historic exploration tracks, station roads, and fence-line access routes branching from the Bourke Developmental Road. Additional access is obtained from Mt Mulgrave Road to the south and Palmerville Road to the northern portions of the permit (Figure 2).

The tenement spans three pastoral leases—Mount Mulgrave, Palmerville, and Yambo—providing multiple entry points through established cattle station infrastructure. Numerous station tracks, exploration lines and graded access routes facilitate movement across much of the area.

Terrain varies significantly across the EPM. The northern sector comprises low, open Melaleuca woodland over deeply incised sandstone ridges of the Gilbert River Formation, where access is occasionally constrained by steep creek systems and gullies. In contrast, the southern portion is dominated by flat to gently undulating Eucalyptus woodland across broad floodplains, offering generally easier vehicle and equipment access for exploration activities.

Local Geology – EPM 26981

EPM 26981 is positioned west of the major Palmerville Fault, a regionally significant structure that separates the Proterozoic Dargalong Metamorphics to the west from the mid-Palaeozoic sediments and volcanics of the Hodgkinson Basin to the east (DeKeyser & Lucas, 1968). Carboniferous–Permian igneous rocks intrude both sequences, accompanied in places by felsic volcanic suites that are commonly associated with mineralising systems in the region. More than half of the tenement is overlain by Late Jurassic Dalrymple Sandstone, masking portions of the underlying prospective stratigraphy.

Volcanic activity associated with the Kintore Supersuite intrudes the Dargalong Metamorphics and Chillagoe Formation adjacent to the Palmerville Fault. Dolerite and metadolerite underlie the southern portion of EPM 26981 and are associated with mineralisation potential at the Palmerville 1 and 2 prospects.

Centrally within the EPM, the Balterra West prospects lie along the Palmer River, roughly 8 km north-west of Palmerville Homestead. Historic work by Sipa Resources on the adjoining ground to the east identified a narrow east–west-trending mineralised quartz vein system within the Dargalong Metamorphics near the Chillagoe contact. Although historical stream-sediment samples on EPM 26981 reported zero values, these samples were never assayed for gold, leaving the true gold potential untested. At Balterra, quartz veins are reported to contain stibnite with elevated gold, and available data suggests these veins are continuous and not cut off at the tenement boundary, indicating potential extension westwards and across the Palmer River.

Regional work at Ark Mines’ Sandy Mitchell Rare Earths Project on nearby Mount Mulgrave Station has demonstrated that REE-bearing heavy mineral sands and associated critical minerals (monazite, xenotime, zircon, ilmenite, rutile) are being shed off the Mt Mulgrave highlands into the low-lying drainage corridor between the Palmer River and Mitchell River. ASX Announcements+1 Government radiometric surveys over this broader Yambo Inlier region have highlighted extensive anomalous radiometric responses linked to concentrations of rare-earth-bearing minerals within stream systems and sand-plain environments. ASX Announcements Similar drainage geometries, radiometric responses and geological provenance extend into the Palmerville–Home Valley catchment covered by EPM 26981, indicating strong potential for REE-enriched mineral sands and colluvial/alluvial accumulations on DMR’s ground. As a result, rare earth element (REE) exploration, guided by radiometric data and follow-up sampling, will be the primary exploration focus for Diversified Mining and Resources within this tenement, complemented by targeted work on the structurally hosted gold–stibnite vein systems at Balterra.

The Sipa vein system is interpreted as a possible dilation vein associated with the Palmerville Fault system—an environment analogous to the Wandoo Prospect north of Chillagoe, where gold is hosted in sheeted veins within metasomatised Dargalong Metamorphics and Nundah Tonalite. Field reconnaissance, detailed geological mapping and a modern sampling program will be used to test the continuity of the Balterra quartz vein system to the west and across the Palmer River, in parallel with DMR’s REE-focused radiometric and sediment sampling program.

Past Work Program (NMR) and Forward Strategy (DMR)

During the previous tenure, Native Mineral Resources (NMR) completed a substantial body of technical work across EPM 26891. In early 2023, NMR’s newly appointed Chief Geologist, Greg Curnow, undertook a comprehensive desktop review of all available geological, geophysical, and historical exploration datasets as part of a wider regional assessment of the Palmerville Project. This work included a reconnaissance visit to the Balterra Reef and Bonanza prospects, helping refine structural interpretations and verify reported mineralisation.

A major milestone during NMR’s program was the completion of a Palmerville-wide airborne magnetic and radiometric survey, flown in June 2023. The survey covered 2,162 km² and totalled more than 30,000 line-kilometres, acquired at 80-m line spacing and ~90-m flight height. The program—partially funded under the Queensland Government’s Collaborative Exploration Initiative (CEI)—provided full, high-resolution coverage over EPM 26891. This dataset significantly improves upon older, state-wide geophysical data and reveals structural and compositional variations previously unresolved.

Preliminary results from the integrated remote-sensing and magnetic/radiometric interpretations highlighted numerous gold and copper targets. These include the Balterra Reef system—where Sipa Resources previously recorded high-grade Au–Sb samples—and geochemical anomalies extending along the south bank of the Palmer River and the Limestone Creek headwaters. NMR also identified two significant composite magnetic highs (Targets B and C), south of Balterra and east of Palmerville. These anomalies appear to represent ring-dyke-style intrusive features, strengthened by the new high-resolution survey and remaining completely untested.

Additional quartz vein arrays on the western side of the tenement—arcuate, ridge-forming and associated with elevated magnetic responses—may also relate to this intrusive system and offer compelling structural targets for further investigation.

DMR Forward Program – Continuing NMR’s Targets + Rare Earths Focus

With the acquisition of EPM 26891, Diversified Mining and Resources (DMR) has inherited the full suite of NMR exploration data, surveys and target models. DMR will continue advancing the priority gold–copper targets identified by NMR, including the Balterra Reef trend, the Palmer River geochemical anomalies, the ring-dyke magnetic bodies, and the quartz-vein systems along the western margin.

However, the primary focus for DMR across EPM 26891 will now shift to Rare Earth Elements (REEs). Recent radiometric interpretations across the Palmerville–Mt Mulgrave–Home Valley region indicate strong potential for REE-bearing mineral sands, colluvium and weathered profiles—particularly where radiometric highs coincide with drainage systems and geological contacts.

DMR’s upcoming work program will include:

  • radiometric anomaly mapping and prioritisation,

  • systematic stream, channel and soil sampling for REE vectors,

  • integration of airborne radiometric datasets with hyperspectral and sedimentological data,

  • follow-up mapping and hard-rock reconnaissance in areas where REEs may be tied to granitic, volcanic or metamorphic sources,

  • continued assessment of gold–copper targets inherited from NMR, with selective drill planning where justified.

By combining NMR’s structural/magnetic targeting work with DMR’s expanded REE-driven exploration strategy, the next phase of work will deliver a comprehensive, multi-commodity evaluation of EPM 26891 and the broader Palmerville district.

 

Current Work Program – Geophysical & Structural Interpretation

As part of the previous exploration phase, Mitre Geophysics was engaged by NMR to complete a comprehensive structural and geophysical interpretation across the northern portion of the Palmerville Project, extending from the Mitchell River to the project’s northern boundary. This work incorporated all areas covered by NMR’s 2023 airborne magnetic and radiometric survey (Figure 7).

Mitre Geophysics utilised the full suite of NMR datasets, publicly available geoscience layers and the 2023 high-resolution airborne survey. Their interpretation relied heavily on advanced magnetic filtering techniques—including RTP transforms, first and second derivatives, tilt derivatives, VRMI and analytic signal products—to map magnetic stratigraphy, identify structural domains and delineate contacts between major geological units. Radiometric imagery was reviewed but contributed minimal additional detail to structural modelling.

The resulting interpretation produced a refined structural framework, classifying fault sets by dominant strike orientation. Distinct systems of E–W, NE, NW and N–S trending structures were mapped, including detailed reconstruction of the primary Palmerville Fault. Major magnetic units and stratigraphic packages were tagged and traced across the region, providing a strong foundation for continued geological interpretation and target generation.

DMR Forward Strategy

With the acquisition of these tenements, Diversified Mining and Resources (DMR) has inherited Mitre’s structural model and will now:

  • Ground truth key structural targets using field mapping and sampling,

  • Integrate radiometric anomalies to prioritise REE-rich zones for follow-up,

  • Expand the structural interpretation to identify REE-relevant geological controls,

  • Target structural intersections, ring-dyke-style magnetics and dilation zones for both hard-rock gold–copper and rare earth element (REE) potential.

While NMR’s work has provided a robust structural and magnetic framework, DMR will extend the program with a major focus on REE exploration, using radiometric highs, sediment pathways and known regional REE systems (e.g., Mount Mulgrave / Sandy Mitchell) to guide new discovery opportunities across the Palmerville district.

 

Results / Conclusions

The structural and magnetic interpretation completed by Mitre Geophysics for the northern Palmerville Project—covering EPM 26891—has provided a valuable baseline framework now inherited by Diversified Mining and Resources (DMR). The work generated a detailed structural map and magnetic stratigraphic model that will guide ongoing exploration across the tenement (Figure 7).

Because EPM 26891 lies west of the Chillagoe Formation, the geophysical character of the predominantly Paleoproterozoic units is comparatively subdued. As a result, the airborne magnetic data did not reveal large or complex geophysical bodies within the tenement footprint. However, the structural interpretation clearly identified multiple locations where north–south trending faults terminate against NE- and NW-oriented structures. These termination points—particularly those situated close to the Palmerville Fault—represent meaningful structural targets for field investigation, mapping and sampling.

Across the area, the interpretation highlights a dominant north–south magnetic grain, intersected by a complex network of NE and NW trending structural corridors, with limited but locally significant E–W structures. These fault intersections may provide conduits for mineralising fluids and therefore remain high-priority localities for ground truthing.

Future work recommended by NMR focused on field mapping, sampling and validation of previously defined targets A, B and C, as well as several newly recognised fault-termination sites. Historically, these targets were considered prospective for gold, antimony and copper based on earlier remote sensing, geochemical datasets and regional context. Diversified Mining and Resources will continue work on these targets.

 

DMR Forward Path – Integrating NMR Targets with a New REE Priority

Following the acquisition of EPM 26891, DMR will continue advancing the structural targets identified by NMR, including the fault-termination zones and the earlier anomalies defined under Targets A, B and C.

However, the forward exploration strategy will now place a major emphasis on Rare Earth Element (REE) discovery, guided by:

  • radiometric highs observed in the 2023 airborne dataset,

  • regional REE shedding models related to Mt Mulgrave / Sandy Mitchell,

  • sediment pathways into the Palmer–Home Valley catchment, and

  • the presence of REE-bearing heavy mineral sands and colluvium recognised across nearby tenements.

This integrated approach means DMR will simultaneously:

  • validate NMR’s structural gold–copper targets, and

  • aggressively pursue REE anomalies highlighted in radiometric and hyperspectral datasets.

Where anomalous results are identified, DMR will deploy follow-up methods such as ground geophysics, REE-focused sampling grids, or drilling as required.

 

Palmerville Home Valley EPM (EPM 26891) – Rare Earth Elements Exploration

Radiometrics & Geological Setting

Radiometric surveying across the Palmerville Project has identified multiple high-value thorium (Th) and uranium (U) anomalies, expressed as green–aqua responses in the ternary K–Th–U imagery. Thorium is a reliable geochemical and geophysical pathfinder for Rare Earth Elements (REEs), commonly associated with minerals such as monazite, allanite, xenotime and bastnäsite.

Within the Palmerville Home Valley EPM, these radiometric highs coincide with mapped granitoid intrusions, major structural corridors along the Palmerville Fault, and zones known for heavy-mineral concentration. This alignment indicates a strong geological setting for both primary hard-rock REE systems and secondary placer/alluvial REE accumulations. Uranium responses, while more mobile, also suggest hydrothermal alteration zones and radiogenic felsic source rocks that are typically REE-fertile.

These combined datasets define several priority exploration targets requiring systematic investigation, including ground-truth mapping, stream-sediment and soil geochemistry, heavy-mineral concentrate studies, and petrological assessment of radiogenic intrusives. Together, they support the presence of both intrusive-related REE systems and monazite-rich placer deposits within the Home Valley project area. 

Initial Sampling Program – Field Summary (November 2025)

From 11–12 November 2025, the DMR fieldwork team completed an initial rare-earth reconnaissance program across the newly acquired Palmerville tenements. The focus was to evaluate key waterways and kaolin-rich terrains highlighted by radiometric data, assessing their potential for both alluvial REE recovery and clay-hosted REE extraction.

A total of 10 samples were collected:

  • 5 alluvial pan-concentrate samples

  • 1 alluvial terrace pan sample

  • 4 kaolin-clay samples

Pan concentrates were obtained by collecting 15 L of mid-flow alluvium from major streams and reducing this to a heavy-mineral concentrate suitable for gravity separation. Sampling points were selected to maximise watershed coverage and detect potential REE placer pathways. A terrace sample was also collected from a track cutting that exposed an underlying alluvial horizon of interest.

Clay samples targeted kaolinised granitic zones—formed through bedrock decomposition and identified via thorium-rich radiometric signatures. Recently excavated sites were used to obtain clean, uncontaminated kaolin material. All samples were logged, bagged, GPS-recorded, and prepared for laboratory assay, with coordinates exported as KML files for integration into the broader exploration model.

This program provides the first systematic dataset supporting ongoing REE exploration within the Palmerville Home Valley EPM and will guide the next phase of detailed geochemistry and targeted drilling.

DIVERSIFIED MINING AND RESOURCES

To prove up and develop critical mineral, rare earths (REE), defence mineral projects.