Gold Resources
The Company has systematically evaluated all resource targets which it acquired through the March 2008 IPO, and updated these to a JORC-compliant status. In addition, it has discovered additional mineralisation at Dulcie.
| Project Area | Deposit | Measured | Indicated | Inferred | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tonnes | g/t Au | Ounces | Tonnes | g/t Au | Ounces | Tonnes | g/t Au | Ounces | Tonnes | g/t Au | Ounces | ||
| Jackson Trend | King Brown | 176,000 | 3.0 | 17,000 | 25,000 | 2.2 | 2,000 | 201,000 | 2.9 | 19,000 | |||
| Golden Orb | 1,023,000 | 2.2 | 71,000 | 1,023,000 | 2.2 | 71,000 | |||||||
| Parker Range | British Hill | 1,166,000 | 1.9 | 71,000 | 557,000 | 1.9 | 35,000 | 1,724,000 | 1.9 | 106,000 | |||
| Battler | 308,000 | 2.2 | 21,000 | 93,000 | 1.7 | 5,000 | 401,000 | 2.0 | 26,000 | ||||
| Dulcie | 1,020,000 | 0.68 | 22,300 | 100,000 | 0.7 | 2,300 | 1,120,000 | 0.68 | 24,600 | ||||
| TOTAL SXG | 2,670,000 | 1.5 | 131,000 | 1,799,000 | 2.0 | 114,000 | 4,469,000 | 1.7 | 246,000 | ||||
| Marda | Python | 502,000 | 2.0 | 32,000 | 241,000 | 1.8 | 14,000 | 117,000 | 1.7 | 6,000 | 859,000 | 1.9 | 52,000 |
| Dolly Pot | 488,000 | 1.9 | 29,000 | 178,000 | 1.6 | 9,000 | 85,000 | 1.5 | 4,000 | 751,000 | 1.8 | 43,000 | |
| Dugite | 196,000 | 2.1 | 13,000 | 82,000 | 1.7 | 5,000 | 20,000 | 1.6 | 1,000 | 298,000 | 2.0 | 19,000 | |
| Goldstream | 200,000 | 1.9 | 12,000 | 26,000 | 1.6 | 1,000 | 7,000 | 1.6 | 1,000 | 233,000 | 1.9 | 14,000 | |
| Die Hardy | Mt King | 523,000 | 3.0 | 50,000 | 523,000 | 3.0 | 50,000 | ||||||
| TOTAL CP | 1,385,000 | 2.0 | 87,000 | 527,000 | 1.7 | 29,000 | 753,000 | 2.6 | 62,000 | 2,665,000 | 2.1 | 178,000 | |
| TOTAL | 1,385,000 | 2.0 | 87,000 | 3,198,000 | 1.6 | 160,000 | 2,551,000 | 2.2 | 177,000 | 7,134,228 | 1.9 | 425,000 | |
| Notes to resources table | |||||||||||||
Two Centres of Gravity - Path to Production
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Battler cross section
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Battler plan
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Dulcie cross sections
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Andromeda
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Gold Production and Development
Evaluation of options for early gold production from the Company's 425,000oz gold resource base is the major focus of the Company's activities in 2009. Following thorough assessment and field exploration, the pipeline of prospective production targets now includes:
- Dulcie Gold
- Feasibility Study in progress
- Battler Gold
- Oxide resource optimisation studies first quarter 2010, underground production targets identified
- British Hill
- Resource optimisation studies proposed
- Marda Central
- Scoping study current
- King Brown
- Scoping study current
- Golden Orb
- Scoping study current
Parker Range Project
The Parker Range Gold Project, with a known 157,000 oz gold resource, has high priority production targets including Dulcie, Battler and British Hill. Infrastructure is good in this district with one operating gold milling facility and another under construction.
The Company's first production is planned to be heap leaching of the Dulcie gold laterite resource with low capital and operating costs.
Dulcie Production
Potential for gold production was identified at the Dulcie gold laterite prospect in March 2009, shortly after completing the purchase of these tenements. Since then, resource definition drilling has identified a resource of 1,120,000 tonnes @ 0.68 g/t Au containing 24,600 ounces of gold.
The northern extensions of Dulcie were previously successfully mined and treated using heap leaching techniques during the 1980s and 1990s by Thames Mining NL, suggesting that the material is metallurgically amenable to heap leach treatment options.
Heap leaching is a proven, low cost method of treating gold bearing laterite. The method is generally low cost due to the following characteristics:
- Little or no overburden resulting in an extremely low stripping ratio
- Very low capital costs compared to a conventional CIP gold mill
- Low operating costs due to the simplicity of the operation
- Short lead time due to limited construction requirements
- Resource drilling can be used for grade control.
Because of these characteristics, this style of operation can be profitable at much lower grades than other forms of gold production. However, very little laterite gold mining is currently undertaken, as most gold bearing laterites were mined and processed during the 1980s and 1990s due to their favourable economics. Examples from this era include the very large Boddington mine and many smaller operations such as Bullabulling and the Thames Mining operations north of Dulcie. The Company is fortunate to have one of the few remaining areas with gold-bearing laterite. Potential bore-fields, a critical aspect of any heap leach operation, are available within Company tenure.
Additional data recently received for Dulcie highlights the potential for oxide and primary mineralisation beneath the Dulcie laterites, with three distinct mineralisation trends apparent, each with significant previous drill intercepts:
- Western Zone
- 5m @ 3.5g/t Au from 27m
- Main Zone
- 2m @ 11.0g/t Au from 42m
- Eastern Zone
- 22m @ 0.9g/t Au from 18m
The potential for high grade bedrock lode sources within the Dulcie laterite are considered good. The Dulcie mining tenement includes the historic Constance Una underlay shaft, which produced at high grade from a quartz lode in BIF.
Mining Leases applications have been submitted and preliminary flora and fauna surveys completed. Metallurgical testwork is in progress and evaluation of water supplies are in hand. A Feasibility Study is currently in progress with results expected before the end of calendar 2009.
Battler Production
Significant mineralisation was intersected at Battler, following the Company's September 2008 RC drill program. Because of its proximity to an existing CIP treatment plant, this prospect has been identified for early gold production. A review of the Battler prospect further reinforced the potential for early production and resource extensions. Discussions with existing or planned infrastructure owners were initiated.
Excellent exploration potential was identified within an untested 700m long zone between the northern most drill traverse at Battler and an old drill traverse just north of the Company's tenure which returned an intercept of 6m @ 2.39g/t Au from 71m.
Re-interpretation of the Battler deposit highlighted the potential for continuation of a high grade lode at depth, supported by the previous drill intercepts of Battler Main Lode, including 3m @ 13.2g/t Au from 76m and confirmed by a recent intercept of 5m @ 11.5g/t Au from 103m.
British Hill Production
A review of the British Hill gold resource and additional exploration potential is currently underway. Potential for this to be an adjunct to any potential operation at Battler is considered high. Re-treating tailings at British Hill is currently being evaluated by a Tributer. This has the potential to supply additional cash to the Company at low risk.
Gold Exploration
The Central Yilgarn Gold and Nickel Province hosts six >1 Moz gold deposits and is a world class nickel sulphide district. The Company is a major landholder within this province. Work to date by The Company has pinpointed numerous gold exploration targets and these are being systematically drill tested by the Company.
Bullfinch North Gold Project
Previous gold exploration at Bullfinch North has been limited, in particular within the extensive areas of shallow transported cover in the north of the belt. A sample of specific high priority gold targets identified by the Company in this area includes:
- Newfield West
- 2000m long soil anomaly, maximum 290ppb Au, 200-500m spaced previous RAB up to 0.6g/t Au.
- Mt Correll
- 1800m long soil anomaly, maximum 651ppb Au, 200m previous RAB with plus 1g/t Au over 1000m.
- Mt Correll South
- 1600m long soil anomaly, maximum 550ppb Au, no previous Drilling.
- Fishiron
- 700m long soil anomaly, maximum 580ppb Au, no previous Drilling.
- Marionette
- 2500m long soil anomaly, maximum 620ppb Au, no systematic Drilling.
These targets have been generated through the Company systematically developing its exploration database through compiling and validating historical and hard copy data in a consistent format in order to improve analysis and add certainty to its ongoing exploration programs.
Marda Gold Project
The Company's strategy for Marda is to increase the known resource base through exploration of high priority targets. With a known resource of 268,000 oz, Marda contains the major share of the Company's resource base.
The Marda Project hosts several high priority exploration targets, including the Andromeda prospect which has plus 1g/t gold mineralisation over a 200m strike and is open to the north and at depth.
Reverse Circulation (RC) drilling by the Company at Andromeda has returned significant gold mineralisation including intercepts of 10m @ 4.4g/t Au, 8m @ 1.98g/t Au and 19m @ 1.76g/t Au. Mineralisation remains open in all directions.
Mineralisation extends well beyond the surface soil anomaly to the north. Further drill follow-up is required to scope the size potential of the overall mineralised system. The nearest drilling to the north is approximately 6.5 km along strike and some low order discontinuous soil anomalies which occur between this drilling and Andromeda suggest the potential for additional mineralisation is high along this trend.
This is an exciting new discovery and indicates very good prospectivity remains in this under-explored province.
Parker Range Project
While this project is the Company's priority production area, it also has significant exploration upside, with several high grade intercepts reported:
- Dulcie
- 3m @ 14.2g/t Au.
- Olga Rocks
- 2.6m @ 14.8g/t Au, 5m @ 8.9g/t Au.
- Devlins Reward
- 2m @ 12.0g/t Au, 4m @ 7.8g/t Au.
In addition, several significant gold and nickel soil and RAB drilling anomalies remain to be RC drill tested.