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CORE ENERGY MINERALS LTD — Capital/Financing Update 2020
Aug 26, 2020
64702_rns_2020-08-26_f018e49e-e428-472b-b829-0623cc9df067.pdf
Capital/Financing Update
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ACN 009 118 861
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27 August 2020
ASX Announcement
OAKDALE EXERCISES OPTION AND ACQUIRES THE ALPINE GOLD PROJECTS IN NEVADA, USA
HIGHLIGHTS:
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Oakdale exercises its option to acquire the Alpine Resources Gold Projects in Nevada, USA
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Drill permits approved and drilling to commence on highly prospective Lambarson and Douglas Canyon projects
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Targeting epithermal and Carlin type gold deposits in Nevada ranked “World Top 3” mining jurisdiction by Fraser Institute
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Lambarson and Douglas Canyon both with strong multi-ounce Au +/-Ag sample results and with multiple drill targets identified
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Oakdale appoints Mr Tony Greenaway as General Manager of Geology
Oakdale Resources Limited ( ASX: OAR ) ( “Oakdale” or “the Company” ) advises that it has exercised the option with Alpine Resources (USA) Pty Ltd ( “Alpine” ) for the acquisition (through its US subsidiary Alpine Metals LLC) of Alpine's gold projects incorporating the Lambarson Canyon, Douglas Canyon and Tonopah North Projects in Nevada, USA ( “the Projects” ). The Projects are targeting Carlin and epithermal style million plus ounce gold deposits in northern and southern Nevada, USA ( Figure 1 ).
Alpine has had drill permits approved by the Nevada Bureau of Land Management (BLM), at both the Lambarson Canyon and Douglas Canyon Projects. Final planning is well underway to drill test compelling gold targets at both Projects, with site works at Lambarson Canyon scheduled to commence in early September 2020.
The planned drilling campaign will comprise up to five diamond drill-holes at the Lambarson Canyon Project that will focus on testing interpreted Carlin Style mineralisation, where initial field work has identified high-grade outcropping gold mineralisation, along with a strong coincident IP resistivity and conductivity anomaly to the south of the outcropping mineralisation.
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Unit 3, 32 Harrogate Street, P: +61 8 6117 4797 ASX: OAR
West Leederville, WA E: [email protected] ACN: 009 118 861
6007 W: www.oakdaleresources.com.au
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Drilling at the Douglas Canyon Project will comprise two diamond drill holes designed to test beneath two separate outcropping high-grade epithermal vein systems. This drilling is scheduled to follow-on from the Lambarson Canyon drilling, utilising the same drilling and support contractors.
About Nevada, USA
Nevada is the sixth largest Gold producing ‘Nation’ in the world and is responsible for 74% of US gold production[1]
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Nevada is “elephant” country for world class gold deposits
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Low political risk, high quality infrastructure and skilled workforce
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Nevada ranked “World Top 3” mining jurisdiction by Fraser Institute
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Important discoveries continue to be made both in the established “Trends” of Carlin and Cortez-Battle Mountain e.g. Groundrush (14M oz) in the Cortez Trend, and Long Canyon (2.3M oz) which has drawn much attention to the hitherto poorly explored eastern parts of Nevada and Western Utah.
Gold Deposits and Gold Trends
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Discovery of Long Canyon (LC) demonstrated that significant gold deposits occur outside of the established gold trends in Nevada
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LC discovered in an area once thought of as not highly prospective – but the discovery has defined a new gold trend.
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This has created a new paradigm for gold exploration in Nevada that opens up large parts of Eastern Nevada and western Utah as prospective for Carlin type gold deposits
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Figure 1: Nevada Projects Locations, with regional mines and reported historic and current resources & reserves[1]
1 Refer to ASX announcement “Update of Gold Projects”, dated 3 September 2019 for full details.
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Lambarson Canyon
Lambarson Canyon, is a potential high-grade Carlin Type system with similar geological setting to the 4.0 M ounce Lone Tree deposit
The property is located 100km south of Winnemucca in the East Range, Pershing County ( Figure 2 ); with similarities with Lone Tree mine and Trenton Canyon geological setting, both of which are hosted by Permian Havallah Group rocks.
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Figure 2: Lambarson Canyon Project Regional Location[2]
Initial field reconnaissance mapping, rock chip sampling completed by Alpine in 2019, identified an area of high-grade outcropping gold mineralisation; with an individual float sampling returning 61.6g/t gold[3] , and an outcrop channel returning 3m @ 6.97 g/t gold[3] within a broader 10m zone of anomalous gold samples ( Figure 2 & Figure 3 ).
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Figure 3: Channel Sample Results Shown in PPM Au with width of channel[3]
2 Refer to ASX Release dated 3 September 2019 for full details
3 Refer to ASX Release dated 27 June 2019 for full table of results and associated JORC Table 1.
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A subsequent IP geophysical survey[4] over this area comprising two north-south oriented survey lines, has identified a strong coincident IP resistivity and conductivity anomaly approximately 300m to the south of the outcropping mineralisation ( Figure 4 & Figure 5) .
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Figure 4: Lambarson Canyon drill target locations, IP survey lines and proposed drill-hole locations
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Figure 5: IP Survey Line 434,550mE: resistivity and changeability results[4]
4 Refer JORC Table 2 for geophysical survey details.
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Oakdale is in the final planning stages to complete diamond drill testing of both geochemical and geophysical anomalies, with initial site works including site access and drill pad construction scheduled to commence in early September 2020
Douglas Canyon Project,
Douglas Canyon, is a an intermediate sulphidation epithermal Au – Ag system
The project is located is the prolific Camp Douglas Mining District in Southern Nevada ( Figure 1 & Figure 6 ) which hosts numerous high-grade gold-silver epithermal deposits. Recent exploration success in the area includes the mina Gold Project (Gold Resources Corporation NYSE: GORO), with drill intersections of 15.24m @ 3.86 g/t gold[5] from surface and 22.86m @ 13.55g/t gold from 4.6m[5] .
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Figure 6: Douglas Canyon Project Location and nearby GORO exploration Projects[5]
Recent follow-up by Alpine led to multiple old workings and very strong Au and Ag rock chip values were obtained from old prospect pits and mine dumps which lead to a decision to stake the property.
5 Refer to GORO website for full details. http://www.goldresourcescorp.com/NV-exploration.php
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Geologic Upside Potential at Douglas Canyon
Oakdale is planning to complete a diamond drilling program, to follow-on from the drilling at the Lambarson Canyon Project, which will comprise two diamond drill holes for an estimate 550m targeting two separate epithermal vein systems ( Figure 7 ).
The target vein systems are interpreted to be dilational zones within each structure which coincide with strong gold and silver results. surface mapping and epithermal vein outcrop and dump sampling by Alpine has returned numerous high-grade gold and silver results across the mapped veins[6] .
The property has an approved 43CFR 3809 Exploration Permit and is fully bonded with the BLM.
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Figure 7: Douglas Canyon Project Proposed Dill hole locations with surface rock-chip sampling results[6]
6 Refer to ASX Release dated 27 June 2019 for full table of results and associated JORC Table 1.
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Terms of Exercise of the Option by Oakdale Resources Ltd ("Oakdale")
The terms and conditions of the Option Deed and Share Acquisition Agreement entered into between Alpine and Oakdale to enable Oakdale to acquire all of the shares in Alpine are summarized as follows:
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Upon exercise of the Option following execution of a Deed of Variation and Exercise of Option ("Option Exercise Date") which has now occurred, Alpine shareholders will be issued 30 million Oakdale shares.
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Within seven (7) days of the Option Exercise Date Oakdale shall pay to Alpine the sum of US$54,779.17 to enable Alpine to pay all of its outstanding expenses and creditors relating to the Gold Projects that have been incurred by Alpine during the Due Diligence Period.
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With effect from the Option Exercise Date and expiring on 31 August 2022 ("Exploration Period") Oakdale shall undertake an exploration and drilling program on the Gold Projects of their choice to comprise a minimum of two (2) holes and shall meet all costs and expenses in relation to such drilling and exploration program during the Exploration Period.
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Upon the expiration of the Exploration Period Oakdale shall have the election to either issue to the Alpine Shareholders a further tranche of 80 million fully paid shares in Oakdale ("Deferred Consideration Shares") or facilitate the transfer of the Gold Projects back to the Shareholders by lodging with the Bureau of Land Management ("BLM") in Nevada a Quit Claim Deed in favour of a nominee company of the Shareholders ("Quit Claim Process") . Should Oakdale elect the Quit Claim Process the Gold Projects shall be in good standing at the BLM with any disturbances rehabilitated, failing which the relevant Bond for this purpose held by BLM must be transferred to the nominee company as part of the Quit Claim Process.
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In the event that Oakdale does not elect the Quit Claim Process:
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(a) An additional 80 million shares in Oakdale shall be issued to the Alpine Shareholders on the announcement by Oakdale of the first 500,000 ounces of gold or gold equivalent JORC Code compliant resource on any of the Gold Projects ("First Milestone Event") and;
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(b) A further 175 million shares in Oakdale shall be issued to the Alpine Shareholders on the announcement of a second 500,000 ounces of gold or gold equivalent JORC Code compliant resource, being a total of 1 million ounces, of JORC Code compliance resource on any of the Gold Projects ("Second Milestone Event") .
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Appointment of General Manager of Geology
Oakdale Resource is pleased to announce that it has appointed a highly experienced geologist Mr. Tony Greenaway BSc (Geol), as the Company’s General Manager of Geology. Mr. Greenaway is a senior geologist with broad experience gained over 23 years and covering operations in Australia, Africa, South America (Chile), Central America (Mexico) and Asia (Indonesia).
Mr. Greenaway’s areas of responsibilities will cover exploration, geological technical overview and operational implementation. Tony has been involved with the exploration, development and production of Gold, Copper and other projects at very senior level in his previous roles with Hancock Prospecting Pty Ltd, Iron Ore Holdings Ltd, White Star Resources Ltd Chile, South America and Talisman Mining Ltd.
For further information please contact:
Chris Gale Executive Chairman Oakdale Resources Ltd. P: +61 8 6117 4797
Peter Taylor Investor Relations NWR Communications. P: +61 412 036 231
About Oakdale Resources Limited
Oakdale Resources is an ASX listed precious metals explorer and aspiring producer. Oakdale has acquired Alpine Resources (USA) Pty Ltd , which controls three gold exploration projects in Nevada, USA. The projects are in a region that hosts several multi-million-ounce gold deposits. Oakdale’s Peruvian subsidiary Ozinca Peru SAC, owns a CIP Gold lixiviation plant, strategically located proximal to thousands of small gold miners in Southern Peru. Oakdale has also acquired Australian Precious Minerals Pty Ltd, holder of the Crown PGE-Nickel exploration asset in Western Australia. Crown adjoins the Julimar polymetallic discovery.
Competent Person’s Statement
The information in this Announcement for Oakdale Resources Limited was compiled by Mr. Geoff Balfe, a Competent Person, who is a member of the Australasian Institute of Mining and Metallurgy. Geoff Balfe is a director and a shareholder of Alpine Resources (USA) Pty Ltd. Geoff Balfe has sufficient experience, which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity to which he is undertaking to qualify as a “Competent Person” as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Geoff Balfe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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JORC Code, 2012 Edition – Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
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Criteria JORC Code explanation Commentary
Sampling Nature and quality of sampling (e.g. cut channels, random chips, or specific Sampling has involved four separate methods:
techniques specialised industry standard measurement tools appropriate to the minerals
Dump Sampling – a minimum of 1.0kg of rock chips is collected from mine
under investigation, such as down hole gamma sondes, or handheld XRF
dumps. In order for the sample to be representative at least 25 small rock
instruments, etc). These examples should not be taken as limiting the broad
fragments are composited. As the dumps typically contain a mix of
meaning of sampling.
unmineralized waste rock and mineralized quartz vein material the mineralized
Include reference to measures taken to ensure sample representivity and the rock is sampled separately to waste rock.
appropriate calibration of any measurement tools or systems used.
Channel Sampling – where outcrop is suitable, particularly in old workings, a
Aspects of the determination of mineralisation that are Material to the Public chip-channel sample is taken across the outcrop. A minimum weight of 1.0kg is
Report. maintained and the length of the channel sample and sample description is
noted.
In cases where ‘industry standard’ work has been done this would be relatively
simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from Grab Sampling – where outcrop is limited a 1.0kg rock sample is collected from
which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases the outcrop. This type of sampling may be highly selective.
more explanation may be required, such as where there is coarse gold that has
Float Sampling – where there is only float of rock particles then a 1.0kg sample
inherent sampling problems. Unusual commodities or mineralisation types (e.g.
is taken by compositing as many small chips as possible.
submarine nodules) may warrant disclosure of detailed information.
There is no evidence of coarse gold sampling problems on any of the properties
sampled. Repeat assaying by the laboratory gave results within acceptable limits
of original assay results.
Drilling Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, No drilling has been carried out
techniques auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube,
depth of diamond tails, face-sampling bit or other type, whether core is oriented
and if so, by what method, etc).
Drill sample Method of recording and assessing core and chip sample recoveries and results No drilling has been carried out
recovery assessed.
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. |
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| Logging | Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and 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. |
All samples have been geologically logged Sampling is either by channel sampling, grab sampling, float sampling, or dump sampling Only channel sampling can be considered to be quantitative; the other methods are qualitative Some sample intervals have been photographed |
| Sub-sampling | If core, whether cut or sawn and whether quarter, half or all core taken. | Samples were crushed in a hammer mill to 70% passing -2mm followed by |
| techniques and sample preparation |
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
splitting off 250gm using a Boyd rotary splitter and pulverizing to better than 85% passing 75 microns In consultation with the laboratory it was determined to carry out a sample preparation and analytical procedure that is most appropriate for gold and associated base metals. |
| Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. |
An 0.5g sub-sample was then subjected to 2-acid digest and ICP-AES and ICP-MS analysis for a multi-element package of elements. |
|
| Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half |
A 30gm sub-sample was subjected to Fire-assay Fusion and ICP analysis. | |
| sampling. | No duplicate sampling has been carried out. The laboratory regularly carries out | |
| Whether sample sizes are appropriate to the grain size of the material being sampled. |
repeat assays of high gold samples and agreement with original assays has been acceptable. |
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| The selected sample mass is considered appropriate for the grain size of the | ||
| material being sampled. |
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Criteria JORC Code explanation Commentary
Quality of The nature, quality and appropriateness of the assaying and laboratory Samples were submitted to an ISO certified laboratory for analysis of gold, silver
assay data and procedures used and whether the technique is considered partial or total. and other metals by the ICP AES or MS technique.
laboratory
For geophysical tools, spectrometers, handheld XRF instruments, etc, the The analytical method and procedure were as recommended by the laboratory
tests
parameters used in determining the analysis including instrument make and for exploration.
model, reading times, calibrations factors applied and their derivation, etc.
As this is early stage exploration with a wide variation in sample results the
Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, Company has not inserted control samples in the regular stream of rock samples.
external laboratory checks) and whether acceptable levels of accuracy (i.e. lack This is considered appropriate for early stage exploration. The laboratory inserts
of bias) and precision have been established. a range of standard samples in the sample stream the results of which are
reported to the Company.
The laboratory uses a series of control samples to calibrate the ICP AES machine.
Verification of The verification of significant intersections by either independent or alternative Selected sample results which were considered to be significant were subjected
sampling and company personnel. to resampling by the Company. Resampling of outcrops or dump samples by
assaying different people can result in variation of results by up to +/- 50%.
The use of twinned holes.
Primary data is recorded on site and entered into the appropriate database.
Documentation of primary data, data entry procedures, data verification, data
storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
Location of Accuracy and quality of surveys used to locate drill holes (collar and down-hole Samples were located using a Garmin GPS 64S unit and are considered accurate
data points surveys), trenches, mine workings and other locations used in Mineral Resource to +/- 3m.
estimation.
The grid system used is UTM NAD 27 Zone 11.
Specification of the grid system used.
The project area is mountainous with topographic control provided by the GPS
Quality and adequacy of topographic control. and government topographic maps at 1:24,000 scale.
Data spacing Data spacing for reporting of Exploration Results. As this is early stage exploration sample density is controlled by the frequency
and of outcrop and access to old workings.
distribution
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Criteria JORC Code explanation Commentary
Whether the data spacing and distribution is sufficient to establish the degree of The results as reported have not been averaged or composited except in the case
geological and grade continuity appropriate for the Mineral Resource and Ore of channel samples which may be composited over the length of the channel.
Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
Orientation of Whether the orientation of sampling achieves unbiased sampling of possible Sampling is preferentially across the strike or trend of mineralized outcrops
data in relation structures and the extent to which this is known, considering the deposit type.
to geological
If the relationship between the drilling orientation and the orientation of key
structure
mineralized structures is considered to have introduced a sampling bias, this
should be assessed and reported if material.
Sample The measures taken to ensure sample security. At all times samples were in the custody and control of the project geologist until
security delivery to the laboratory where samples were held in a secure enclosure
pending processing.
Audits or The results of any audits or reviews of sampling techniques and data. None undertaken at this stage
reviews
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Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral tenement and land tenure status |
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. |
Mining Claims have been staked and duly recorded with Mineral County (Tonopah North and Douglas County) and Pershing County (Lambarson Canyon) and filed with the Bureau of Land Management (BLM). The relevant claim numbers are either appended to this Table or contained elsewhere in this ASX release. BLM receipts for the filing of the Claims are in the possession of the Company. The claims have been staked by Alpine Metals LLC, a wholly owned subsidiary of Alpine Resources (USA) Pty Ltd. The Togo-A Claim located in the Tonopah North property is subject to an agreement between Alpine Metals LLC and a prospector which allows for acquisition of the claim by Alpine subject to completing certain expenditure within 5 years of the agreement date. All Mining Claims are valid In order to obtain permission to drill the Company must lodge Environmental Performance Bonds with the BLM. The Company is not aware of any impediments to obtaining a licence to operate, subject to carrying out appropriate environmental and clearance surveys. |
| Exploration | Acknowledgment and appraisal of exploration by other parties. | There is no record of gold exploration on any of the subject Mining Claims. There |
| done by other | are many prospecting pits and mine shafts on the properties but no records of | |
| parties | production. | |
| The Tonopah North property was at one time held by Tonogold Resources, a | ||
| Canadian company, which did not carry out any drilling. Sampling data collected | ||
| by that company has been provided to Alpine and results are in good agreement | ||
| with the results obtained by Alpine. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Geology | Deposit type, geological setting and style of mineralisation. | Tonopah North and Douglas Canyon are low-sulphidation epithermal gold-silver mineralized systems. They are structurally controlled vein style deposits. Lambarson Canyon is considered to be Carlin style gold mineralization due to its geochemical signature and sedimentary host rocks. |
| Drill hole Information |
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar 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. |
No drilling information |
| Data | In reporting Exploration Results, weighting averaging techniques, maximum | No weighting or averaging techniques have been applied to the sample assay |
| aggregation | and/or minimum grade truncations (e.g. cutting of high grades) and cut-off | results. |
| methods | grades are usually 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. |
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Criteria JORC Code explanation Commentary
Relationship These relationships are particularly important in the reporting of Exploration Channel samples have been collected at right angles to the strike or structural
between Results. trend of the mineralization
mineralisation
If the geometry of the mineralisation with respect to the drill hole angle is known,
widths and
its nature should be reported.
intercept
lengths If it is not known and only the down hole lengths are reported, there should be a
clear statement to this effect (e.g. ‘down hole length, true width not known’).
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should The Company has released various maps, figures and sections showing the
be included for any significant discovery being reported These should include, but sample results and planned drill holes.
not be limited to a plan view of drill hole collar locations and appropriate
sectional views.
Balanced Where comprehensive reporting of all Exploration Results is not practicable, All analytical results for gold have been reported. The results for other metals
reporting representative reporting of both low and high grades and/or widths should be have only been reported where they are considered to be of potential economic
practiced avoiding misleading reporting of Exploration Results. interest e.g. silver.
Other Other exploration data, if meaningful and material, should be reported including This report includes results from recent Geophysical Surveys. Results from this
substantive (but not limited to): geological observations; geophysical survey results; survey are included in the body of this report.
exploration geochemical survey results; bulk samples – size and method of treatment; Parameters for the surface electromagnetic surveys include:
data metallurgical test results; bulk density, groundwater, geotechnical and rock o Configuration: pole-dipole IP/resistivity survey
characteristics; potential deleterious or contaminating substances. o Line and station spacing: 100m x 50m
o TXIV 20amp IP/resistivity transmitters
o GDD RX32 IP/resistivity receiver
o measurements were made in the time-domain using a two-second
half-duty cycle
o An integration window from 0.5 to 1.1 seconds was used for the
calculation of the chargeability values presented
o IP models presented in this report have been calculated using the
Res2dinvx64 algorithm
Further work The nature and scale of planned further work (e.g. tests for lateral extensions or Initial drill hole locations have been selected based on the preliminary sampling
depth extensions or large-scale step-out drilling). and geological mapping. It is intended to refine the drill hole locations with the
benefit of geophysical surveys (resistivity) and the results of any further
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| Criteria JORC Code explanation Diagrams clearly highlighting the areas of possible extensions, including the main |
Commentary geochemical sampling. Additional geophysical surveys will be carried out as |
|---|---|
| geological interpretations and future drilling areas, provided this information is | justified by results. |
| not commercially sensitive. |
Section 3 Estimation and Reporting of Mineral Resources – None Undertaken
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