The Far Fanning gold deposit is situated 60 kilometres south-west of Townsville (Fig. 1). Previous recorded production is 3756 tonnes returning about 1600 ounces of gold. This has been taken from surface and shallow underground workings- scattered over the strike length of the deposit of 1700 metres. The main production period was from 1895 to 1908._x000D_
Previous exploration involving extensive trenching and sampling has been: carried out intermittently. since the 1930's, by Gold Mines of Australia (1932), Placer (1974), Anaconda (1975), Marathon (1980-8-1), Aberfoyle (1981-82), and The Northern Queensland Company (NQC) (1983-present)._x000D_
In 1980 Marathon undertook an extensive drilling programme to test the oxidised mineralisation. Over 200 percussion holes and- 7 diamond holes were drilled along traverse lines spaced 29 to 103 metres apart covering a strike length of around 1800 metres.