EAST KALGOORLIE PROJECT, WESTERN AUSTRALIA
East Kalgoorlie Project Tenement Location Plan:
Blair North E25/268 (NMI 79%, Balagundi Gold 21%):
Magenta = >10ppb Au, blue triangles = RAB/Aircore drilling, small circles = geochemistry sampling points.
George's Reward, Southern Zone:
An initial inferred resource estimate of 375,000 tonnes @ 1.89g/t au for 22,850 ounces gold amenable to open pit mining remains open at depth and along strike. Mineralisation commences 7 metres from surface and there is considerable potential to increase resource with deeper drilling. Outstanding gold intersections open at depth and along strike: 66m @ 2.9g/t Au, 43m @ 3.4t/t Au, 45m @ 0.9g/t Au, 24m @ 1.6g/t Au, 42m @ 2.7g/t Au, 20m @ 1.3g/t Au. Mineralisation confirmed from surface to 200m below surface. Coarse, free gold.
George's Reward Cross Section:
Gold Mineralisation Blair North showing 4 zones of mineralisation and almost 2kms untested between George's Reward and Northern Zone:
Blair North, Northern Zone Gold:
Four distinct zones of bedrock gold anomalism defined by maximum gold in bedrock greater than 0.5g/t Au, including 700m trend of high grade mineralisation defined by RC and RAB drilling. Open to northeast and unconstrained in other directions.
Induced polarization (IP) survey reveals new geophysical anomalies and additional gold potential.
Diamond drilling in January 2011 revealed considerable potential for large mineralised body with high grade gold shoots, enveloped in a low grade gold halo.
Wide, lower grade halo extends to south of Northern Zone, within ~900m George's reward.
New drilling (diamond and RC) will be planned to target gold resources in vicinity of largely untested 600m x 200m IP anomaly A.
Blair North E25/268 Nickel:
RC drill testing of a massive nickel sulphide target, identified from a downhole TEM survey undertaken in hole BNRC008 earlier in the year, intersected significant nickel sulphides, assaying up to 4.4% Ni, in two of three holes drilled in the programme. The recent soil sampling programme revealed several areas anomalous in nickel with peak values of 2181ppm abd 1078ppm Ni. Follow-up RAB drilling in October 2009, encountered 22m @ 0.18% Ni, 464ppm Cu. This equates to a bedrock response for magmatic nickel sulphides.
Nickel Sulphide Occurence E25/268 showing 8m @ 1.8% Ni:
KANOWNA LIGHTS PROSPECT, WESTERN AUSTRALIA
M27/0236 and M27/0177 (NMI 79%, Balagundi Gold 21%)
The Kanowna Lights Prospect covers an area of 565 hectares and is ideally located in a high gold endowment region just 3kms north of the world class +5 million ounce Kanowna Belle Gold Deposit. It is also 2.5kms northwest of the 1 million ounce Red Hill Deposit and two historical production areas; the 250,000 ounce Kanowna Deep Leads and the 250,000 ounce White Feather reef system.
Historical exploration at the prospect identified two coherent north-south bedrock gold geochemical trends with lengths in excess of 800 metres. Recent drilling by NMI has identified potential for oxide gold mineralisation within these laterally extensive geochemical trends with drillhole KLRC010 returning intercepts of 7 metres @ 2.39g/t Au from 51 metres and 2 metres @ 2.00g/t Au from 64 metres within a broader gold mineralised envelope of 21 metres grading 1.35g/t Au. This intercept and an historical intercept of 21 metres grading 1.56g/t Au within the western geochemical trend suggests potential for oxide mineralisation over a horizontal width of 40 to 50 metres.
Within the eastern geochemical trend, drillhole KLRC011 returned an intercept of 13 metres @ 2.26g/t Au from 65 metres. This intercept and previously reported intercept of 15 metres @ 1.36g/t Au in KLRC005 has also identified potential for oxide mineralisation over a horizontal width of 40 to 50 metres.
Significant bedrock anomalism has been highlighted in a review of historical drilling with better drill intercepts of: 21m @1.56g/t Au (boh), 11m @ 0.99g/t Au (boh), 9m @ 1.01g/t Au (boh), 3m @ 2.05g/t Au (boh).
Follow-up RC and diamond drilling programmes will continue to further evaluate the oxide and bedrock potential.
Successful gold exploration in the Kanowna Lights region has demonstrated that modern discoveries such as the Kanowna Belle Mine require an understanding that the upper surface of supergene enrichment in the area may occur at depths up to 50m below surface with much of the evidence of concealed mineralisation having been leached from the near surface environment. Exploration also needs to take into account that geochemical halos overlying concealed mineralisation may be displaced from the true position of the mineralisation.
Kanowna Lights Prospect Tenement Layout and Recent Drill Coverage:
Kanowna Lights Prospect - Detailed Drill Hole Collar Plan with Bedrock Gold Intercepts