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CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2014
Sep 16, 2014
64607_rns_2014-09-16_6873b9f0-6d8e-4bff-ae31-ffeb89b1d222.pdf
Capital/Financing Update
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CARNAVALE RESOURCES LIMITED ASX RELEASE 17 SEPTEMBER 2014
EXPLORATION UPDATE
CARNAVALE RESOURCES
ASX Code: CAV
Shares: 195.1M Options: 131.8M Cash: $1.65M Sept 2014 M.Cap $2.9M (@ $0.015)
Little Butte Gold Project, Arizona
- Potential to define a significant oxide gold resource from surface
Two high grade gold zones defined by previous drilling within the Railway Prospect
Eastern Zone
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22.9m @ 1.44 g/t Au from 19.8m,
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4.6m @ 33.65 g/t Au from 22.9m
Directors
Ron Gajewski (Chairman) Andrew Beckwith (MD) Klaus Eckhof (NED) Rhett Brans (NED)
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22.9m @ 4.06 g/t Au from 6.1m,
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10.1m @ 2.59 g/t Au from 1.4m
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10.7m @ 4.65 g/t Au from 39.6m
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9.1m @ 2.21 g/t Au from 54.9m
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12.2m @ 2.2g/t from 48.7m
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24.4m @ 3.4g/t from 24.4m
Western Zone
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44.2m @ 1.04 g/t Au from 32m,
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13.7m @ 2.02 g/t Au from 67.1m
Carnavale Resources Limited is an exploration and development company based in Perth, Western Australia.
Carnavale has entered an option to acquire Tojo Minerals Pty Ltd, which has rights to acquire two highly prospective gold-silvercopper projects in Arizona and Nevada, USA.
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Additional broad zones of supergene (remobilized) mineralisation provide resource upside
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Drilling planned to commence in October, subject to approvals
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Potential low cost processing options based on historical metallurgical sampling
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Untested Cu-Au “sulphide” target associated with deeper “chargeability” anomaly
Office
Level 1, Suite 5 The Business Centre 55 Salvado Rd. Subiaco, WA 6008
Post
PO Box 131 Subiaco, WA 6008
Contact Details
Ph +61 8 9380 9098 Fax +61 8 9380 6761 [email protected]
Andrew Beckwith, Managing Director
“We are about to drill our exciting advanced gold target at Little Butte in western Arizona. The project has walk up drill targets and potential to define a significant shallow oxide gold resource. Drilling is planned to commence in October, subject to approvals.”
“We are planning to test two high grade gold zones for extensions. The gold occurs in vertical structures from surface down to at least 110 metres and each zone has a target strike length of approximately 1km each. In addition, there are broad zones of remobilised supergene gold which should provide some significant resource upside .”
“Our immediate strategy is to define sufficient oxide gold resources to support a low capex open pit mining operation.”
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CARNAVALE RESOURCES LIMITED
Carnavale Resources Ltd (ASX: CAV) is pleased to report on its Little Butte Gold Project, Arizona USA, where the Company is focused on defining sufficient resources to support a low capex open pit mining operation.
Detailed data assessment has generated “walkup drill targets” with near-term potential to define a significant oxide (weathered) gold resource from surface to at least 110 metres depth with additional deeper sulphide potential. Our strategy, is to confirm and extend the previously defined shallow oxide gold mineralisation, then target an oxide resource that can support a low-cost open pit mining operation similar to the nearby Copperstone Gold Deposit, which produced more than 500,000 ounces of gold from oxide open pits (1987-1993) and is currently being developed as a high grade (>10g/t) underground gold mine.
The Little Butte project comprises mineral claims covering an area of approximately 9km[2] . Previous exploration over the project area has highlighted two priority targets at the Railway Prospect. The first target is a >900metre long north-south trending IP resistivity anomaly, with a strike length that remains open beyond the limits of the IP survey data to the north and south, coincident with significant zones of shallow oxide gold mineralisation defined by RC and diamond drilling completed in 2010/11 and lesser drilling conducted in the 1980’s.
The second deeper target is a strong “chargeability high” IP anomaly located semi-coincident and at depth. This anomaly requires further definition however it is considered prospective for sulphide rich copper-gold mineralisation below the depth of weathering and maybe the source of the extensive oxide copper mineralisation seen throughout the project area and in lesser supergene zones partially overprinting the shallower weathered gold mineralisation.
RAILWAY PROSPECT
Gold Mineralisation
Two strong trends of high grade primary gold mineralisation (>1.5g/t Au) are hosted in deeply weathered brecciated, sheared and veined siltstones and sandstones interpreted to be controlled by two bounding sub-vertical structures, the Western and Eastern Zones, on either side of the IP “resistivity” anomaly (Fig 1). Additionally, weathering has remobilized some of this gold into lower grade (supergene) zones throughout the highly weathered rocks on the margins of these primary gold zones.
The high grade gold mineralisation is typically associated with massive hematite rich veins with stockworks of thin quartz veining to massive breccias with a hematite rich matrix. The photo below shows visible gold in a hematite (iron) rich vein adjacent iron rich brecciated rocks, in diamond hole LB-1016C.
The coarse gold, as seen in the photo below and in surface samples, together with the highly weathered nature of the host rocks plus positive bottle roll testwork (historical) provides encouraging scope for various potentially low cost processing options (eg gravity, heap leach and vat leach) processing methods should sufficient resources be defined.
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Fig 1 Railway Prospect Location Plan showing IP “resistivity” and drilling results
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----- Start of picture text -----
Visible Gold
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(field of view approximately 3cm x 8cm)
Drill Results
The gold mineralisation within the High Grade Eastern Zone (HGEZ) is defined in RC and diamond drilling over approximately 200 metres (Fig 1) and to a maximum depth of approximately 110 metres (Fig 2) in a zone sub-parallel to the eastern margin of the major resistivity high. Limited drilling occurs along strike or at depth.
This high grade gold mineralisation has also been identified at surface in a number of shallow trenches where sampling of poorly outcropping host rocks includes visible gold and a maximum rock chip assay result to 52 g/t with additional remobilized copper.
The High Grade Western Zone (HGWZ) mineralisation occurs on the western margin of the IP “resistivity” anomaly (Fig 1) and approximately 80 to 100 metres west of the HGEZ.
Strong gold intersections have been defined in RC drilling (2010/11) on sections 230 metres apart (Fig 1, 2 and 3) with anomalous drill results occurring a further 130 metres to the south. This zone is poorly drill tested and remains open
Significant drilling results from the Eastern Zone
LB-1002 22.9m @ 1.44 g/t Au from 19.8m, including 13.7m @ 2.15 g/t Au from 22.9m LB-1009 4.6m @ 33.65 g/t Au from 22.9m LB-1010 22.9m @ 4.06 g/t Au from 6.1m, including 4.6m @ 9.34 g/t Au from 6.1m LB-1015C 10.1m @ 2.59 g/t Au from 1.4m LB-1101 10.7m @ 4.65 g/t Au from 39.6m and 9.1m @ 2.21 g/t Au from 54.9m BR12 12.2m @ 2.2g/t from 48.7m BR19 24.4m @ 3.4g/t from 24.4m (previously stated as 42m @ 2.04g/t) BR36* 3m @ 4.6g/t from 128m
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| Significant | drill results from the Western Zone |
|---|---|
| LB-1106 | 44.2m @ 1.04 g/t Au from 32m, |
| including 16.8m @ 1.89 g/t Au from 59.4m | |
| LB-1110 | 13.7m @ 2.02 g/t Au from 67.1m |
| BR20* | 12.2m @ 1.2g/t from 128m |
*As a cautionary note, the BR series drilling was completed prior to JORC compliance and cannot be fully validated by Tojo/Carnavale however are considered to be indicative of the potential oxide gold mineralisation at the Railway Prospect and other areas as supported by the 2010/11 drilling.
A full list of drilling locations and intercepts from the 2010/11 drilling database are provided in Appendix 1.
Fig 2 Railway Prospect, Section 2610mN showing significant gold results
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Fig 3 Railway Prospect, Section 2830mN showing significant gold results
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Supergene Gold
Overprinting these deeply weathered high grade sub-vertical gold bearing structures are broad zones of supergene mineralisation (gold remobilised by weathering). Importantly, these large zones of generally lower grade remobilised “supergene” gold (0.1 - 1.0g/t) may represent additional low grade tonnage potential. Notably, many large heap leach operations in Nevada and Arizona are mining gold grades as low as 0.2-0.3g/t. Therefore, these low grade gold intercepts may provide substantial additional resource tonnes and ounces depending on recoveries and processing costs.
Drilling Programme
Carnavale is currently planning to complete a programme of selected infill and extension RC drilling, to further test continuity of both the high grade and supergene zones over approximately 400 metres strike length at the Railway Prospect during October, subject to regulatory approvals.
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Other Targets
Coincident to the north south trending “resisitivity” anomaly at Railway Prospect, are a number of “chargeability highs” defined in the IP geophysical survey. These “chargeability highs” are interpreted to represent potential NNE plunging sulphide rich targets in the fresh rock below the weathered zone.
These proposed “sulphide targets” are considered the possible source for the extensive remobilised supergene copper mineralisation seen in old prospector workings within the project area and the partially overprinting copper at the Railway Prospect. Further geophysical surveys are currently being assessed to better define these targets prior to planning additional deeper drilling to test this potential.
For further information contact:
Andrew Beckwith Peter Taylor Managing Director Investor Relations Carnavale Resources Ltd NWR Communications P: 08 9380 9098 P: +61 (0)412 036 231
The information in this report that relates to exploration results is based on, and fairly represents information and supporting documentation prepared by Mr Andrew Beckwith, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Beckwith is a Director of Carnavale Resources Limited. Mr Beckwith has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr Beckwith consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
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Background Information
Carnavale Resources (ASX:CAV)
Carnavale Resources Limited is an exploration and development company based in Perth Western Australia, with a focus on the discovery and development of gold and base metal deposits. Carnavale is listed on the Australian Securities Exchange (ASX), ticker symbol [CAV] and on the German Stock Exchange in Frankfurt under YBB.
Carnavale has entered an option agreement with Tojo Minerals Pty Ltd (Tojo), which has the rights to two highly prospective gold and base metal projects located in Arizona and Nevada of the USA. Carnavale has the right to elect to acquire Tojo 100% and is required to fund a minimum of US$500,000 assessing the projects during the option period to Feb 2015.
– Little Butte, Arizona USA Gold and Copper Project
(Tojo - option to earn 100%, subject to third party NSR)
The Little Butte Project is considered highly prospective for structurally controlled gold mineralisation associated with regional shear zones and potentially copper-gold-molybdenum porphyry related deposits and is located in the Plomosa Mining district of western Arizona, which is considered a mining friendly state of the USA.
Carnavale is initially testing for shallow, open pittable, oxide gold mineralisation hosted along an interpreted regional north south shear zone in Tertiary aged sediments (siltstone, sandstones and conglomerates) similar to the Copperstone Gold Deposit. Copperstone is located approximately 25km to the south west, where historical (1986-93) heap leach and CIP production totals 514,000 ounces of gold at an average grade of 2.4g/t, with additional deeper high grade (>10g/t) underground resources currently being assessed for development.
At Little Butte and within a radius of three(3) kilometres, numerous other historical small scale copper and gold mines operated during the reported periods from 1910-11, 1929-31 to 1940-42 for a total recorded production of 5,000oz Au, 350,000 pounds Cu and 7,000oz Ag.
The largest reported deposit is the Little Butte Copper Mine, with reported grades of 4-6% copper and 7-10g/t gold, and last operated in 1942. Other historical gold mines, mostly located to the south west, with recorded production at an average grade of 38.7g/t gold. Importantly, the mineralisation associated with these deposits is hosted in similar north-south to north-west trending shear zones as targeted by Carnavale.
Regionally, additional potential includes large tonnage low grade Cu-Au-Mo porphyry deposits. The Morenci Cu, Bagdad Cu-Mo, Sierrita Cu, Miami Cu and Safford Cu mines are examples of large scale copper porphyry mines all located and operating in Arizona by Freeport-McMoRan. Reports by previous operators at Little Butte highlight metal zonation, intrusive rocks and alteration suggesting the potential for porphyry related mineralised systems, however further work is necessary to confirm this style of mineralisation at Little Butte.
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Appendix 1 Historical Drill Information
Little Butte – 2010/11 Drill Hole Locations
| Hole | Type | Easting | Northing | RL (m) | Azimuth | Dip | Depth(m) |
|---|---|---|---|---|---|---|---|
| LB-1001 | RC | 770077 | 3762549 | 274.93 | 30.00 | -70.00 | 134.1 |
| LB-1002 | RC | 770095 | 3762478 | 275.84 | 29.00 | -60.00 | 61.0 |
| LB-1003 | RC | 770510 | 3762543 | 272.80 | 270.00 | -80.00 | 121.9 |
| LB-1004 | RC | 770500 | 3762664 | 272.80 | 270.00 | -70.00 | 121.9 |
| LB-1005 | RC | 770072 | 3762479 | 274.93 | 90.00 | -50.00 | 121.9 |
| LB-1006 | RC | 770095 | 3762478 | 275.84 | 90.00 | -50.00 | 48.8 |
| LB-1007 | RC | 770054 | 3762548 | 271.88 | 90.00 | -63.00 | 121.9 |
| LB-1008 | RC | 770077 | 3762549 | 274.93 | 90.00 | -63.00 | 152.1 |
| LB-1009 | RC | 770103 | 3762416 | 276.45 | 90.00 | -70.00 | 121.9 |
| LB-1010 | RC | 770061 | 3762596 | 272.49 | 90.00 | -63.00 | 121.9 |
| LB-1011 | RC | 769769 | 3762703 | 269.75 | 90.00 | -50.00 | 18.3 |
| LB-1012 | RC | 769738 | 3762702 | 269.75 | 90.00 | -50.00 | 21.3 |
| LB-1012A | RC | 769735 | 3762705 | 269.75 | 45.00 | -50.00 | 45.7 |
| LB-1013C | CORE | 770076 | 3762605 | 272.19 | 270.00 | -45.00 | 32.3 |
| LB-1014C | CORE | 770076 | 3762605 | 272.19 | 270.00 | -78.00 | 68.3 |
| LB-1015C | CORE | 770088 | 3762582 | 272.80 | 270.00 | -45.00 | 32.6 |
| LB-1016C | CORE | 770088 | 3762582 | 272.80 | 270.00 | -78.00 | 50.3 |
| LB-1017C | CORE | 770103 | 3762416 | 276.45 | 90.00 | -70.00 | 28.7 |
| LB-1018C | CORE | 770103 | 3762416 | 276.45 | 90.00 | -80.00 | 29.3 |
| LB-1019C | CORE | 770131 | 3762610 | 271.88 | 270.00 | -45.00 | 120.4 |
| LB-1101 | RC | 770110 | 3762605 | 274.02 | 244.00 | -45.00 | 91.4 |
| LB-1101A | RC | 770048 | 3762489 | 273.71 | 270.00 | -45.00 | 91.4 |
| LB-1102 | RC | 770111 | 3762489 | 275.54 | 270.00 | -45.00 | 97.5 |
| LB-1103 | RC | 770079 | 3762489 | 274.93 | 270.00 | -45.00 | 121.9 |
| LB-1104 | RC | 770014 | 3762489 | 272.49 | 270.00 | -45.00 | 91.4 |
| LB-1105 | RC | 769982 | 3762489 | 273.10 | 270.00 | -45.00 | 91.4 |
| LB-1106 | RC | 770044 | 3762605 | 273.10 | 270.00 | -45.00 | 91.4 |
| LB-1107 | RC | 770011 | 3762605 | 272.19 | 270.00 | -45.00 | 91.4 |
| LB-1108 | RC | 770097 | 3762830 | 271.88 | 270.00 | -45.00 | 106.7 |
| LB-1109 | RC | 770130 | 3762830 | 267.31 | 270.00 | -45.00 | 91.4 |
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CARNAVALE RESOURCES LIMITED
| Hole | Type | Easting | Northing | RL (m) | Azimuth | Dip | Depth(m) |
|---|---|---|---|---|---|---|---|
| LB-1110 | RC | 770066 | 3762830 | 268.53 | 270.00 | -45.00 | 91.4 |
| LB-1111 | RC | 770033 | 3762830 | 268.53 | 270.00 | -45.00 | 91.4 |
| LB-1112 | RC | 770000 | 3762830 | 268.83 | 270.00 | -45.00 | 91.4 |
| LB-1113 | RC | 769980 | 3762605 | 272.80 | 270.00 | -45.00 | 54.9 |
| LB-1113A | RC | 769980 | 3762604 | 272.80 | 270.00 | -45.00 | 91.4 |
| LB-1114 | RC | 770110 | 3762605 | 274.02 | 270.00 | -45.00 | 91.4 |
| LB-1115 | RC | 770063 | 3762489 | 273.71 | 0.00 | -90.00 | 166.1 |
Hole Coordinates UTM NAD27 Zone 11
Location data recorded by hand held GPS to accuracy of +/-3m
Original hole depths and sample depths recorded in feet and calculated to metres
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Little Butte – Significant Drill Intercepts 2010/11 Drilling
| Hole | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) |
|---|---|---|---|---|---|
| LB-1001 | 41.1 | 53.3 | 12.2 | 0.75 | |
| including | 50.3 | 51.8 | 1.5 | 2.62 | |
| LB-1002 | 19.8 | 42.7 | 22.9 | 1.44 | |
| including | 22.9 | 36.6 | 13.7 | 2.15 | |
| and | 47.2 | 48.8 | 1.5 | 1.98 | |
| LB-1005 | 73.2 | 82.3 | 9.1 | 0.50 | |
| LB-1006 | 30.5 | 35.1 | 4.6 | 1.05 | 0.12 |
| LB-1007 | 15.2 | 16.8 | 1.5 | 0.60 | 0.19 |
| LB-1008 | 53.3 | 54.9 | 1.5 | 0.91 | |
| and | 80.8 | 82.3 | 1.5 | 4.85 | |
| and | 97.5 | 103.6 | 6.1 | 1.11 | |
| including | 100.6 | 102.1 | 1.5 | 3.36 | |
| LB-1009 | 22.9 | 27.4 | 4.6 | 33.65 | |
| LB-1010 | 6.1 | 29.0 | 22.9 | 4.06 | 0.30 |
| including | 6.1 | 10.7 | 4.6 | 9.34 | 0.10 |
| and | 35.1 | 38.1 | 3.0 | 1.46 | 0.14 |
| and | 65.5 | 71.6 | 6.1 | 1.25 | |
| including | 65.5 | 67.1 | 1.5 | 3.25 | |
| LB-1009 | 97.5 | 100.6 | 3.0 | 1.48 | |
| LB-1013C | 14.3 | 16.8 | 2.4 | 24.54 | 0.28 |
| including | 14.3 | 15.2 | 0.9 | 64.70 | |
| and | 18.9 | 19.8 | 0.9 | 0.69 | 0.12 |
| LB-1014C | 12.8 | 15.9 | 3.0 | 2.73 | |
| and | 18.3 | 19.8 | 1.5 | 0.51 | |
| and | 26.2 | 29.0 | 2.7 | 9.57 | 0.19 |
| and | 32.0 | 33.5 | 1.5 | 0.57 | |
| and | 36.6 | 48.8 | 12.2 | 0.72 | 0.14 |
| LB-1015C | 1.4 | 11.4 | 10.1 | 2.59 | 0.21 |
| and | 21.0 | 22.3 | 1.2 | 0.83 | |
| LB-1016C | 4.0 | 8.2 | 4.3 | 0.80 | 0.31 |
| and | 24.4 | 25.9 | 1.5 | 0.58 | |
| and | 30.5 | 39.6 | 9.1 | 1.00 |
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CARNAVALE RESOURCES LIMITED
| Hole | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) |
|---|---|---|---|---|---|
| and | 48.8 | 50.3 | 1.5 | 1.53 | |
| LB-1017C | 18.3 | 19.8 | 1.5 | 0.51 | 0.73 |
| LB-1018C | 18.0 | 21.0 | 3.0 | 1.89 | 0.53 |
| and | 27.1 | 29.0 | 1.8 | 1.01 | |
| LB-1019C | 84.1 | 88.4 | 4.3 | 0.51 | |
| LB-1101 | 39.6 | 50.3 | 10.7 | 4.65 | |
| and | 54.9 | 64.0 | 9.1 | 2.21 | 0.10 |
| including | 54.9 | 62.5 | 7.6 | 2.59 | 0.10 |
| LB-1101 | 68.6 | 70.1 | 1.5 | 0.34 | |
| LB-1102 | 12.2 | 13.7 | 1.5 | 1.44 | |
| LB-1104 | 29.0 | 30.5 | 1.5 | 1.05 | |
| and | 36.6 | 38.1 | 1.5 | 0.51 | |
| LB-1105 | 39.6 | 41.1 | 1.5 | 0.54 | |
| and | 61.0 | 62.5 | 1.5 | 0.54 | |
| LB-1105 | 24.4 | 25.9 | 1.5 | 0.60 | 0.21 |
| and | 32.0 | 76.2 | 44.2 | 1.04 | |
| including | 59.4 | 76.2 | 16.8 | 1.89 | |
| LB-1107 | 45.7 | 47.2 | 1.5 | 0.78 | 0.22 |
| and | 56.4 | 57.9 | 1.5 | 0.79 | 0.22 |
| LB-1109 | 16.8 | 18.3 | 1.5 | 0.74 | |
| and | 77.7 | 79.2 | 1.5 | 1.10 | |
| LB-1110 | 67.1 | 80.8 | 13.7 | 2.02 | |
| LB-1111 | 12.2 | 13.7 | 1.5 | 0.69 | |
| and | 56.4 | 61.0 | 4.6 | 0.83 | |
| LB-1113 | 50.3 | 51.8 | 1.5 | 0.54 | |
| LB-1114 | 88.4 | 91.4 | 3.0 | 0.67 |
Reported Intercept based on overall gold grade >0.5 g/t (calculated on lower Au cutoff = 0.3 g/t, maximum internal waste of 4m) Higher grade internal intervals based on overall gold grade >1.5 g/t (calculated on lower Au cutoff = 0.5 g/t, maximum internal waste of 2m)
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Little Butte – Historical Pre 1990 Drill Hole Locations
| Hole | Type | Easting | Northing | RL (m) | Azimuth | Dip | Depth(m) |
|---|---|---|---|---|---|---|---|
| BR-7 | RC | 770488 | 3762532 | 274.32 | 30.00 | -70.00 | 152.4 |
| BR-11 | RC | 770145 | 3762686 | 271.27 | 30.00 | -70.00 | 121.9 |
| BR-12 | RC | 770078 | 3762547 | 274.93 | 30.00 | -70.00 | 152.4 |
| BR-16 | RC | 770479 | 3762464 | 278.28 | 30.00 | -60.00 | 152.4 |
| BR-19 | RC | 770096 | 3762477 | 275.23 | 29.00 | -60.00 | 152.4 |
| BR-20 | RC | 769939 | 3762645 | 272.19 | 30.00 | -60.00 | 152.4 |
| BR-21 | RC | 769670 | 3762409 | 274.62 | 30.00 | -60.00 | 152.4 |
| BR-34 | RC | 769983 | 3762451 | 271.27 | 31.00 | -60.00 | 152.4 |
| BR-35 | RC | 770128 | 3762409 | 274.93 | 31.00 | -60.00 | 152.4 |
| BR-36 | RC | 770063 | 3762442 | 274.62 | 32.00 | -60.00 | 137.2 |
| BR-38 | RC | 769790 | 3762706 | 270.05 | 29.00 | -60.00 | 176.8 |
| BR-39 | RC | 769880 | 3762542 | 274.32 | 29.00 | -60.00 | 176.8 |
| BR-40 | RC | 769901 | 3762593 | 272.80 | 31.00 | -60.00 | 170.7 |
| BR-48 | RC | 770381 | 3762498 | 274.02 | 30.00 | -60.00 | 146.3 |
Little Butte – Significant Drill Intercepts Pre 1990 Drilling
*As a cautionary note, the BR series drilling was completed prior to JORC compliance and cannot be fully validated by Tojo/Carnavale however are considered to be indicative of the potential oxide gold mineralisation at the Railway Prospect and other areas as supported by the 2010/11 drilling.
| Hole | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | Prospect |
|---|---|---|---|---|---|---|
| BR-7 | 30.5 | 36.6 | 6.1 | 0.65 | Other | |
| and | 61.0 | 73.2 | 12.2 | 3.07 | 0.15 | Other |
| BR-11 | 10.7 | 13.7 | 3.0 | 0.69 | Railway | |
| BR-12 | 48.8 | 61.0 | 12.2 | 2.23 | Railway | |
| and | 93.0 | 103.6 | 10.7 | 0.81 | Railway | |
| BR-16 | 91.4 | 109.7 | 18.3 | 1.40 | Other | |
| including | 91.4 | 103.6 | 12.2 | 1.95 | Other | |
| BR-19 | 24.4 | 48.8 | 24.4 | 3.40 | Railway | |
| BR-20 | 128.0 | 140.2 | 12.2 | 1.23 | Railway | |
| BR-21 | 73.2 | 79.2 | 6.1 | 4.56 | Other | |
| BR-34 | 27.4 | 33.5 | 6.1 | 1.03 | Railway | |
| BR-35 | 39.6 | 42.7 | 3.0 | 0.65 | Railway |
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CARNAVALE RESOURCES LIMITED
| Hole | From (m) | To (m) | Interval (m) | Au (g/t) | Cu (%) | Prospect |
|---|---|---|---|---|---|---|
| and | 61.0 | 64.0 | 3.0 | 0.55 | Railway | |
| and | 94.5 | 100.6 | 6.1 | 0.69 | Railway | |
| and | 106.7 | 109.7 | 3.0 | 0.82 | Railway | |
| BR-36 | 128.0 | 131.1 | 3.0 | 4.59 | Railway | |
| BR-38 | 30.5 | 48.8 | 18.3 | 0.59 | 0.13 | Other |
| BR-39 | 158.5 | 164.6 | 6.1 | 0.62 | Railway | |
| BR-40 | 67.1 | 73.2 | 6.1 | 0.55 | Railway | |
| BR-48 | 61.0 | 67.1 | 6.1 | 1.06 | 0.21 | Other |
Reported Intercept based on overall gold grade >0.5 g/t (calculated on lower Au cutoff = 0.3g/t, maximum internal waste of 4m) Higher grade internal intervals based on overall gold grade >1.5 g/t (calculated on lower Au cutoff = 0.5g/t, maximum internal waste of 2m)
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Table JORC Code, 2012 Edition –
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| Sampling | | Nature and quality of sampling (eg cut | | Historical exploration sample results reported include |
| techniques | channels, random chips, or specific specialised industry standard measurement |
drilling results completed by previous parties that operated on the project. The pre 1990 reported |
||
| tools appropriate to the minerals under | drilling results are summarized in historical reports | |||
| investigation, such as down hole gamma | and pre date JORC standards. The 2010/11 original | |||
| sondes, or handheld XRF instruments, etc). | drilling data has been acquired, assessed and |
|||
| These examples should not be taken as | validated. Results are considered JORC 2012 |
|||
| limiting the broad meaning of sampling. | compliant. | |||
| | Include reference to measures taken to | | The 20101/11 drilling comprises RC (reverse |
|
| ensure sample representivity and the | circulation) and diamond core at the prospect area | |||
| appropriate calibration of any measurement | on generally east west drill fences over the target | |||
| tools or systems used. | north south shear zones. The drilling is considered to | |||
| | Aspects of the determination of | have only partially tested the overall target shear | ||
| mineralisation that are Material to the Public | zones. The reported results are considered |
|||
| Report. | representative of the shear zone mineralisation as | |||
| | In cases where ‘industry standard’work has | known to date. The pre 1990 drilling data is |
||
| been done this would be relatively simple | considered representative of the mineralisation |
|||
| (eg ‘reverse circulation drilling was used to | potential and is supported by the more recent | |||
| obtain 1 m samples from which 3 kg was | 2010/11 drilling. | |||
| pulverised to produce a 30 g charge for fire | | The drill core has been inspected and is of general | ||
| assay’). In other cases more explanation | good condition. Sampling was originally on half core | |||
| may be required, such as where there is | cut basis with sample intervals on a variable length | |||
| coarse gold that has inherent sampling | basis and is of a good standard. RC drilling pulps | |||
| problems. Unusual commodities or | and logging chip trays have been retained. The holes | |||
| mineralisation types (eg submarine nodules) | have been previously logged | |||
| may warrant disclosure of detailed | | Assays have been completed at an industry |
||
| information. | acceptable commercial laboratory using a 30gram | |||
| Au Fire Assay with AA finish and multi-element with a | ||||
| four acid digest and ICP-AEs finish. Duplicates and | ||||
| standards remains to be assessed. | ||||
| Drilling | | Drill type (eg core, reverse circulation, open- | | Recent (2010/2011) drilling comprises 30 holes for |
| techniques | hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core |
2,977 metres of RC (reverse circulation) and 7 holes for 361 metres of diamond core completed in |
||
| diameter, triple or standard tube, depth of | 2010/11 by a third party. This drilling partially tests | |||
| diamond tails, face-sampling bit or other | the target shear zones. Additional pre-1990 drilling | |||
| type, whether core is oriented and if so, by | partially tests the target shear zone and additional | |||
| what method, etc). | holes occur elsewhere on the property. Assessment | |||
| of the results indicates the 2010/11 drilling supports | ||||
| the results in this early phase of drilling with one hole | ||||
| successfully twinned. The reported mineralisation is | ||||
| considered representative of the mineralisation within | ||||
| the targeted shear zones. | ||||
| Drill sample | | Method of recording and assessing core and | | Diamond drilling core sample recoveries have been |
| recovery | chip sample recoveries and results assessed. |
documented. Generally the logging shows acceptable recoveries over 90% except in limited |
||
| | Measures taken to maximise sample | zones where recovery is considered moderate to | ||
| recovery and ensure representative nature | low. In these instances the loss relates to highly | |||
| of the samples. | weathered material and associated drilling |
|||
| | Whether a relationship exists between | difficulties. | ||
| sample recovery and grade and whether | | RC drilling recoveries are unknown at this stage. | ||
| sample bias may have occurred due to | | Grade verses sampling bias is not known at this | ||
| preferential loss/gain of fine/coarse material. | stage, however it is noted visible gold is evident in |
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| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| the core, potentially indicating nuggetty gold issues | ||||
| may occur in the sampling. | ||||
| Logging | | Whether core and chip samples have been | | Previous geological logging has been completed on |
| geologically and geotechnically logged to a | all holes. No geotechnical logging has been sighted. | |||
| level of detail to support appropriate Mineral | The drilling indicates the entire drill holes are in | |||
| Resource estimation, mining studies and | highly weathered bedrock. | |||
| metallurgical studies. | ||||
| | Whether logging is qualitative or quantitative | |||
| in nature. Core (or costean, channel, etc) | ||||
| photography. | ||||
| | The total length and percentage of the | |||
| relevant intersections logged. | ||||
| Sub- | | If core, whether cut or sawn and whether | | Diamond core has been logged and then sampled on |
| sampling techniques and sample preparation |
|
quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and |
|
half core cut basis, and is considered of a good standard. RC drilling is stated as drilled wet, riffle split and then sampled wet. Duplicate and standard assays for quality control |
| appropriateness of the sample preparation | measures have been completed on the 2010/11 to | |||
| technique. | satisfactory standard. | |||
| | Quality control procedures adopted for all | | Mineralised zones have been re-analysed on a | |
| sub-sampling stages to maximise | selective basis | |||
| representivity of samples. | ||||
| | Measures taken to ensure that the sampling | |||
| is representative of the in situ material | ||||
| collected, including for instance results for | ||||
| field duplicate/second-half sampling. | ||||
| | Whether sample sizes are appropriate to the | |||
| grain size of the material being sampled. | ||||
| Quality of | | The nature, quality and appropriateness of | | Assay techniques are appropriate for the style of |
| assay data and laboratory tests |
| the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the |
|
mineralisation targeted. Reputable independent industry laboratory utilized for all previous analysis Quality control measures are considered satisfactory and unbiased. |
| parameters used in determining the analysis | | External lab umpire samples are currently underway | ||
| including instrument make and model, | as an additional check. | |||
| reading times, calibrations factors applied | ||||
| and their derivation, etc. | ||||
| | Nature of quality control procedures adopted | |||
| (eg standards, blanks, duplicates, external | ||||
| laboratory checks) and whether acceptable | ||||
| levels of accuracy (ie lack of bias) and | ||||
| precision have been established. | ||||
| Verification | | The verification of significant intersections | | Review of the diamond core, RC chips and pulp |
| of sampling and assaying |
|
by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry |
| storage areas and drilling sites in the field has been completed. Core and drilling pulps are in good condition and are well stored. |
| procedures, data verification, data storage | | Drill results from the 2010/11 programme have | ||
| (physical and electronic) protocols. | twinned a hole from the pre 1990 programme with | |||
| | Discuss any adjustment to assay data. | reasonable correlation | ||
| Location of | | Accuracy and quality of surveys used to | | Drill holes are located by hand held GPS to an |
| data points | locate drill holes (collar and down-hole surveys), trenches, mine workings and other |
accuracy of +/- 3m. Verification of location remains to be completed in the field. |
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CARNAVALE RESOURCES LIMITED
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| locations used in Mineral Resource | | Pre-1990 drill locations taken from historical reports | ||
| estimation. | and validation in the field is not possible to any | |||
| | Specification of the grid system used. | accuracy | ||
| | Quality and adequacy of topographic | |||
| control. | ||||
| Data | | Data spacing for reporting of Exploration | | Currently the drilling and sampling is of insufficient |
| spacing and distribution |
| Results. Whether the data spacing and distribution is sufficient to establish the degree of |
density to determine a resource estimate. | |
| geological and grade continuity appropriate | ||||
| for the Mineral Resource and Ore Reserve | ||||
| estimation procedure(s) and classifications | ||||
| applied. | ||||
| | Whether sample compositing has been | |||
| applied. | ||||
| Orientation | | Whether the orientation of sampling | | Drilling orientation is considered to be appropriate to |
| of data in | achieves unbiased sampling of possible | test the width of mineralized structure, however | ||
| relation to geological structure |
| structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key |
additional drilling is required to test the interpreted orientation of mineralisation, continuity along strike and at depth |
|
| mineralised structures is considered to have | ||||
| introduced a sampling bias, this should be | ||||
| assessed and reported if material. | ||||
| Sample | | The measures taken to ensure sample | | Unknown during drilling. Pulps and core at held in a |
| security | security. | secure storage area in Reno, Nevada | ||
| Audits or | | The results of any audits or reviews of | | Review of the core indicates geological logging, |
| reviews | sampling techniques and data. | alteration and mineral assemblages reflect reported | ||
| assays on a visual basis. All original data for the | ||||
| 2010/11 drilling has now been reviewed |
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| Mineral | | Type, reference name/number, location | | Full list of results are reported in Appendix 1. The |
| tenement | and ownership including agreements or | property is under an option to earn into the project. | ||
| and land tenure status |
material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and |
| Tojo has the right to earn 100% of the project over 10 years and $6M project expenditure and the third party vendor retains a 3% net smelter royalty on production The drill results occur within registered patented and |
|
| environmental settings. | unpatented claims in Arizona, USA | |||
| | The security of the tenure held at the time | | The area is managed by the Bureau of Land | |
| of reporting along with any known | Management (BLM), a government body. Future | |||
| impediments to obtaining a licence to | drilling and any mining will require approval from the | |||
| operate in the area. | BLM and other regulatory bodies | |||
| Exploration | | Acknowledgment and appraisal of | | Reported drill results are from work completed by a |
| done by other parties |
exploration by other parties. | US based third party, drilled in 2010/11. Early pre- 1990’s drilling is prior to JORC compliance and cannot be fully validated by Tojo/Carnavale however are considered to be indicative of the potential oxide |
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| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| gold mineralisation at the Railway Prospect and other | ||||
| areas as supported by the 2010/11 drilling | ||||
| Geology | | Deposit type, geological setting and style of | | The deposit style is currently unknown, however |
| mineralisation. | mineralisation is interpreted to occur associated with | |||
| two vertical structures defined by geophysical data. | ||||
| The mineralisation is hosted in highly weathered | ||||
| siltstones and coarser sandstones and conglomerates | ||||
| and associated with veining, shearing and breccias. | ||||
| Drill hole | | A summary of all information material to | | The reported results are presented in Appendix 1. |
| Information | the understanding of the exploration results | | Majority of the 2010/11 drilling is on east west | |
| including a tabulation of the following | orientated drill lines with angled drill holes targeting | |||
| information for all Material drill holes: | the north south trending structure and perpendicular to | |||
| | easting and northing of the drill hole collar | the mineralisation strike. | ||
| | elevation or RL (Reduced Level –elevation | | Minor additional pre-1990’s holes have not been | |
| above sea level in metres) of the drill hole | included as they are not spatial related or considered | |||
| collar | material to the target. | |||
| | dip and azimuth of the hole | |||
| | down hole length and interception depth | |||
| | hole length. | |||
| | If the exclusion of this information is | |||
| justified on the basis that the information is | ||||
| not Material and this exclusion does not | ||||
| detract from the understanding of the | ||||
| report, the Competent Person should | ||||
| clearly explain why this is the case. | ||||
| | ||||
| Data | | In reporting Exploration Results, weighting | | Reported gold intercepts use uncut assay values on |
| aggregation methods |
averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually |
| length weighted basis. Cutoff grades and intercepts calculations provided in Appendix 1 |
|
| Material and should be stated. | ||||
| | Where aggregate intercepts incorporate | |||
| short lengths of high grade results and | ||||
| longer lengths of low grade results, the | ||||
| procedure used for such aggregation | ||||
| should be stated and some typical | ||||
| examples of such aggregations should be | ||||
| shown in detail. | ||||
| | The assumptions used for any reporting of | |||
| metal equivalent values should be clearly | ||||
| stated. | ||||
| Relationship | | These relationships are particularly | | The reported drill results are down hole lengths. |
| between | important in the reporting of Exploration | Orientation of mineralisation is currently poorly defined | ||
| mineralisa- tion widths and |
| Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. |
| and therefore true widths are not known. The 2010/11 drilling is interpreted to be perpendicular to the strike of mineralisation. Insufficient drilling undertaken to provide true widths |
| intercept | | If it is not known and only the down hole | ||
| lengths | lengths are reported, there should be a | |||
| clear statement to this effect (eg ‘down | ||||
| hole length, true width not known’). | ||||
| Diagrams | | Appropriate maps and sections (with | | Plans and sections of significant results provided in |
| scales) and tabulations of intercepts should | report. | |||
| be included for any significant discovery | ||||
| being reported These should include, but | ||||
| not be limited to a plan view of drill hole | ||||
| collar locations and appropriate sectional | ||||
| views. | ||||
| Balanced | | Where comprehensive reporting of all | | The Company considers the mineralisation is likely to |
| reporting | Exploration Results is not practicable, representative reporting of both low and |
occur as a series of plunging higher grade shoots alongthe interpreted shear zones with an enclosing |
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| Criteria | JORC Code explanation | JORC Code explanation | Commentary | Commentary |
|---|---|---|---|---|
| high grades and/or widths should be | envelope of lower grade remobilised mineralisation | |||
| practiced to avoid misleading reporting of | surrounding these shoots in the weathering zone. The | |||
| Exploration Results. | summary results provided in this release reflect known | |||
| mineralisation to date and provides a representative of | ||||
| the style and grade of mineralisation defined to date. | ||||
| Other | | Other exploration data, if meaningful and | | Drilling was targeted on structures defined by an |
| substantive | material, should be reported including (but | existing third party IP geophysical survey. | ||
| exploration data |
not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples –size and |
|||
| method of treatment; metallurgical test | ||||
| results; bulk density, groundwater, | ||||
| geotechnical and rock characteristics; | ||||
| potential deleterious or contaminating | ||||
| substances. | ||||
| Further | | The nature and scale of planned further | | Proposed new drilling is currently planned to test the |
| work | work (eg tests for lateral extensions or | along strike and down dip extents of the previously | ||
| depth extensions or large-scale step-out | defined mineralisation | |||
| drilling). | | Additonal detailed metallurgical testwork is required to | ||
| | Diagrams clearly highlighting the areas of | fully determine likely recoveries for each metal. | ||
| possible extensions, including the main | ||||
| geological interpretations and future drilling | ||||
| areas, provided this information is not | ||||
| commercially sensitive. |
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