GATEWAY MINING LIMITED — Interim / Quarterly Report 2013

Apr 29, 2013

ABN: 31 008 402 391 Level 8, 210 George Street Sydney NSW 2000 GPO Box 225 Sydney NSW 2001 Tel: 61 2 9191 4543 Fax: 61 2 8247 7999 Email: gml8@bigpond.com Website: www.gatewaymining.com.au

==> picture [154 x 56] intentionally omitted <==

**MARCH

2013
QUARTERLY
ACTIVITIES
&
CASH
FLOW
REPORT**

Highlights: _

• Results
  returned
  from
  February
  RC
  drilling
  program
  –
  significant
  Copper
  intersections
  at
  The Cup
  and
  Bevan

• Confirmed
  widespread
  massive
  sulphide
  accumulations
  with
  anomalism
  for
  Cu,
  Zn,
  Au,
  Ag
  and typical
  VMS
  trace
  elements

• New
  Copper
  target
  discovered
  at
  Dummy
  Spit
  within
  the
  Gossans
  Galore
  area

• Appointment
  of
  new
  Non-­‐Executive
  Chairman,
  Trent
  Franklin

Results returned from Gidgee RC drilling

During
February
&
March,
Gateway
Mining
Limited
(“Gateway”
or
“the
Company”)
completed approximately
2,000m
of
RC
drilling
on
its
flagship
Gidgee
project
in
Western
Australia.
This
is
the
first drill
program
completed
since
the
Company
underwent
a
restructuring
and
recapitalisation
during
2012.

Holes
were
planned
primarily
to
follow
up
historical
anomalies
which
remained
untested,
and
the results
overall
were
very
strong.
Significant
Copper
intersections
were
returned
at
The
Cup
and
Bevan prospects:

• Bevan:
  10m
  @
  1.32%
  Cu,
  0.65%
  Zn
  and
  9.3g/t
  Ag
  from
  43m, including 2m
  @
  3.7%
  Cu

• The
  Cup:
  25m
  at
  0.78%
  Cu
  from
  68m ,
  including 6m
  @
  2.03%
  Cu, and 11m
  @
  12.2g/t
  Ag from 64m

Furthermore,
an
extremely
encouraging
virgin
discovery
was
made
at
the
Dummy
Spit
electro-­‐magnetic (EM)
conductor
in
the
Gossans
Galore
area:

• Dummy
  Spit:
  5m
  @
  0.56%
  Cu
  from
  90m

The
find
is
significant
because
of
the
associated
geochemistry
(elevated
Ag
and
Cd),
the
potentially simple
geology
of
the
mineralisation,
and
that
the
hole
returned
massive
sulphides,
including chalcopyrite.
While
it
is
in
a
very
early
stage
of
exploration,
early
interpretations
suggest
the
hole
has

just
‘clipped’
the
top
of
the
mineralisation,
and
that
there
is
a
strong
possibility
widths
and
grades
can improve
down
dip.
Furthermore,
the
conductor
is
approximately
1km
long,
meaning
that
the
strike extent
to
the
east
and
west
is
very
significant.

==> picture [400 x 577] intentionally omitted <==

----- Start of picture text -----

Bevan
&
Bigfinger
Snake
Gossan
The
Cup
Birthday
Gossan
Gossans
Galore
Gravel
Pit
----- End of picture text -----

Gidgee
Project
Overview
–
recent
drill
targets;
also
showing
extensive
EM
conductors

Bevan

GRC230
at
the
Bevan
prospect
was
designed
to
test
for
mineralisation
below
an
historic
RAB
drilling geochemical
anomaly
(Cu

2,000ppm).
The
hole
is 50m
north
of
the
tip
of
a
VTEM
conductor that could
potentially
host
strong
copper
mineralisation.
The
hole
returned
an
excellent
initial
assay
of 10m @
1.32%
Cu,
0.65%
Zn
and
9.3g/t
Ag
from
43m, including 2m
@
3.7%
Cu ,
in
the
oxidised
zone.
This bodes
extremely
well
for
the
prospect
as
the
hole
was
drilled
north
of
where
the
conductor
is interpreted
to
begin.

The
results
also
returned excellent
geochemistry .
Max
dh
results
for
VMS
pathfinder
elements
include 22ppm
Bi,
29ppm
Cd,
1700ppm
Pb,
130ppm
Se,
and
21ppm
Te .
This
gives
the
Company
further confidence
that
the
conductor
has
the
potential
to
host
a
VMS
mineralised
economic
ore
body.

==> picture [469 x 457] intentionally omitted <==

The
VTEM
conductor
has
excellent
potential
to
host
stronger
copper
mineralisation
and
the
Company
is extremely
encouraged
by
these
initial
results.
Follow
up
drilling
is
planned
for
July
/
August
2013
when the
next
RC
drilling
program
begins.

**The

Cup**

The
Cup
returned
an
impressive
result
of 25m
@
0.78%
Cu
and
11m
@
12.2g/t
Ag from
64m, including 6m
@
2.03%
Cu in
GRC
239.
GRC240
was
a
vertical
hole
drilled
on
the
tenement
boundary
and
it
did
not intersect
any
significant
mineralisation.

==> picture [224 x 11] intentionally omitted <==

----- Start of picture text -----

Cross Section 6968050mN (+/- 25m window)
----- End of picture text -----

==> picture [457 x 335] intentionally omitted <==

Two
very
encouraging
points
came
from
the
results
returned
at
The
Cup.
Firstly,
there
was
a
clear geochemical
marker
in
the
silver
zone
which
overlays
the
copper
mineralisation.
Historic
drilling
at
The Cup
returned
silver
results
up
to
177g/t
Ag.
Every
hole
which
has
intersected
the
copper
mineralisation has
a
silver
zone
above
it.
This
potential
‘marker’
also
bodes
extremely
well
for
the
results
returned from
elevated
silver
zone
intersected
at
Dummy
Spit
at
Gossans
Galore
(approximately
7km
SW
of
The Cup).

The
second
encouraging
outcome
from
GRC239
is
that
mineralisation
was
intersected
higher
in
the
hole than
anticipated,
which
has
brought
about a change
in
the
interpreted
geometry
at
The
Cup .
This
has significant
upside
implications .
Mineralisation
is
open
to
the
southeast, away from
the
tenement boundary,
for
as
far
as
mineralisation
persists.
Interpretation
of
the
current
and
historical
results appears
to
show
a trend
of
improving
grade
and
width
to
the
southeast, as
shown
below:

==> picture [359 x 482] intentionally omitted <==

The
mineralised
zone
intersected
in
GRC239
on
section
6968050mN
is now
thought
to
be
a
series
of stacked,
flat
lying
horizons .
The
stratigraphy
now
looks
to
be
flattening
off
to
the
south
in
what
appears to
be
a
gentle
fold
structure.
There
are
significant
EM
conductors
which
correspond
to
the
newly interpreted
direction
of
the
mineralisation.

==> picture [203 x 14] intentionally omitted <==

----- Start of picture text -----

Cross
Section
6968000mN
(+/-­‐
25m
window)
----- End of picture text -----

==> picture [469 x 344] intentionally omitted <==

Further
testing
of
The
Cup
is
planned
for
the
RC
program
in
July
/
August.
Drill
holes
planned
will
test
the southern
extensions,
where
the
Company’s
current
modelling
suggests
significant
potential
for improving
grades
and
widths.

No
primary
chalcopyrite
is
evident
from
logging
at
The
Cup.
Limited
previous
micro-­‐probe
investigations have
indicated
that
chalcocite
is
the
main
copper-­‐bearing
mineral.
Chalcocite
is
often
treatable
using cheaper
heap-­‐leach
processes,
which
can
significantly
improve
the
economics
of
a
mining
operation.

**Gossans

Galore**

The
Gossans
Galore
area
is
a
highly
prospective
area
within
the
Company’s
tenements.
There
are
a number
of
conductors
in
the
area
which
have
geophysical,
geological
and
geochemical
indications
of
a VMS
mineralised
system.

GRC245
in
the
recent
drilling
program
tested
the
Dummy
Spit
conductor
and
returned
a
very encouraging
initial
result
of 5m
@
0.56%
Cu
from
90m.

Dummy
Spit
Conductor

==> picture [469 x 298] intentionally omitted <==

The
result
in
GRC245
result
is extremely
encouraging
considering
the
early
stage
of
exploration for
the Dummy
Spit
conductor.
There
remains
excellent
potential
for
the
width
and
grade
of
the
mineralisation to
significantly
improve
down
dip,
up
strike
and
down
strike,
especially
in
the
sections
where
the
EM conductor
is
much
stronger.

Subsequent
analysis
of
the
drill
chips
also
shows
what
appears
to
be
anhydrite
interstitial
to
sulphides at
Dummy
Spit.
Anyhydrite
has
been
identified
at
numerous
VMS
deposits
around
the
world.
This
would be
an
excellent
outcome
as
the
presence
of
anhydrite
suggests
VMS
mineralisation
that
has
not
been highly
metamorphosed
or
structurally
deformed.
The
anhydrite
mineral
would
ordinarily
be
destroyed during
regional
metamorphism
or
deformation,
so
its
presence
suggests
the
VMS
mineralisation
remains in
pristine
condition.

In
a
further
encouraging
sign,
the
chalcopyrite
was
intersected
beneath
an
anomalous
silver
zone
of 10m
at
1.61g/t
Ag.
This
appears
to
correspond
extremely
well
to
the
silver
geochemical
signatures
seen at
The
Cup
(refer
announcement
on
24
April,
2013),
and
possibly
represents
a
regional
geochemical signature.

The
significance
of
the
silver
intersection
can
be
seen
through
similar
results
at
The
Cup.
GRC182,
drilled at
The
Cup,
intersected
strong
silver
anomalism
above
a
weakly
anomalous
copper
zone
(similar
to
the current
Dummy
Spit
hole).
However
GRC183,
undercutting
this
hole,
30m
down-­‐dip,
returned
27m
at 1.14%
copper
and
a
further
40m
downdip
GRC200
returned
33m
at
1.22%
copper.

This
theory
gains
further
weight
by
the
improving
geochemistry
intersected
down
dip
in
GRC223
(the incomplete
hole
from
the
September
2012
program),
the
most
significant
of
which
was
an
intersection of
cadmium
in
GRC223
of 10m
@
25.4ppm
Cd
from
100m.

**Gravel

Pit**

Two
RC
holes
were
drilled
at
Gravel
Pit
during
the
quarter
targeting
EM
conductive
anomalies
about
five kilometres
SSE
along
strike
from
The
Cup
copper
discovery.
Both
holes
intersected
prospective
VMS geology,
anomalous
in
copper
and
zinc.

GRC241
drilled
highly
weathered
felsic
rocks
anomalous
for
base
metals
including
55m
at
264ppm copper
from
10m
and
66m
at
270ppm
copper
and
451ppm
zinc
from
119m
to
end
of
hole
in carbonaceous
sediment
and
disseminated
sulphides.

GRC242
intersected
80m
at
349ppm
copper
and
246ppm
zinc
from
30m
in
highly
weathered
felsic
rocks.

These
results
are
significant
because
they
provide
confirmation
that
VMS
prospective
terrain
from within
which
The
Cup
prospect
was
discovered
extends
into
the
southwest
of
the
Gidgee
Project
where there
are
multiple
conductive
anomalies
interpreted
from
MLTEM
ground
survey
test
work.
The
MLTEM anomalies
are
located
below
shallow
transported
cover,
and
amount
to
about
12
kilometres
of
strike extent
which
to
date
has
had
extremely
limited
drill
hole
coverage
carried
out.

Aircore
drilling
scheduled
to
commence
soon
is
designed
to
traverse
MLTEM
conductive
trends
at
Gravel Pit.
Aircore
drilling
is
expected
to
penetrate
to
relatively
deep
levels
cost
effectively
because
of
the
deep level
weathering
encountered
to
date
at
Gravel
Pit.
Drilling
is
on
wide
line
spacing
and
is
intended
to locate
VMS
geological/geochemical
horizons
that
occur
close
to
surface
which
can
then
be
swiftly targeted
by
later
drill
programs.

The Snake

The
Snake
is
a
1.4km
trend
of
strong
VTEM
conductivity
and
widely
anomalous
geochemical
anomalism in
historic
rock
chip
sampling.
Minimal
RC
drilling
has
been
carried
out
to
date.
Two
RC
holes
were drilled
at
Snake
Gossan
during
the
quarter
that
targeted
below
shallow
historic
drill
hole
intersections
in areas
of
high
VTEM
conductivity. Both
holes
intersected
disseminated
sulphides in
potential
VMS
host geological
horizons.
Results
returned
broad
intersections
of
strongly
anomalous
copper,
zinc
and
VMS pathfinder
elements.

**GRC237

-­‐
15m
@
0.11%
Cu
and
0.40%
Zn
from
95m GRC238
-­‐
25m
@
0.09%
Cu
and
0.46%
Zn
from
70m**

While
the
intersected
results
are
not
ore
grade,
the
mineralisation
was
intersected
in
disseminated sulphides
and
it
was
accompanied
by
strong
geochemistry.
This
suggests
an
appropriate
environment for
the
discovery
of
stronger
grade
VMS
mineralisation
nearby.
The
level
of
geochemical
anomalism
at The
Snake
is
considered
very
high.
Below
are
the
max
dh
results
for
the
two
holes:

	Ag	Cd	In	Mo	Pb	Se	Sn	Te
GRC237	1.1	10.9	1.32	4.76	56.7	17	7.3	2.75
GRC238	1.21	10.35	1.68	6.14	54.4	17	12.6	2.61

The
Snake
Gossan
area
consists
of
undulating
terrain
with
widely
occurring
outcrop
and
sub-­‐crop.
The VMS
horizon
was
mapped
and
rock
chip
sampling
carried
out
along
its
length
between
the
two
RC
holes drilled.
Lithology
consists
of
a
sub-­‐vertically
dipping
sheared
felsic
unit
that
stratigraphically
overlies basalt
to
the
east
and
underlies
dolerite
intrusives
to
the
west.
Two
VMS
vent
mound
structures
appear to
be
identified
where
a
thickening
of
the
felsic
sequence
occurs.
A
unit
of
carbon
rich
sediment
overlies the
felsics
at
the
southern
mound
and
siliceous
chemical
sediments
at
the
northern
mound.
Adding weight
to
this
interpretation
is
that
the
greatest
geochemical
anomalism
in
surface
rock
chip
sampling
is occurring
around
these
two
centres.
Also,
depletion
of
the
magnetic
response
in
the
overlying
dolerite might
be
explained
by
ongoing
VMS
activity
after
the
dolerite
was
emplaced.
Alternatively,
the
dolerite may
have
intruded
into
what
was
once
a
more
continuous
carbonaceous/siliceous
horizon
leaving
the thicker
areas
intact.
Further
work
is
required
to
understand
the
geology
of
the
prospect,
however
if
the first
interpretation
is
correct
and
there
are
two
VMS
vent
structures,
then
they
appear
to
be
relatively small
systems
that
are
very
rich
in
pathfinder
element
concentration.
Potential
massive
sulphide occurrences
associated
with
these
systems
might
also
be
relatively
small
but
rich.

Rock
chip
sampling
at
Snake
Gossan
is
strongly
anomalous
for
copper,
zinc
and
VMS
pathfinder elements.
There
are
no
large
outcrops
of
gossan
after
massive
sulphides
located
however potential
at depth
remains
untested .
A
small
outcrop
that
does
appear
to
be
after
massive
sulphides
that
was
rock chip
sampled,
RKS010,
returned
the
strongest
multi-­‐element
concentration
on
record
at
the
Gidgee Project
being
anomalous
in
every
pathfinder
element.
Further
more
detailed
mapping
and
rock
chip sampling
to
determine
the
extent
of
this
outcrop
will
be
undertaken.
More
detailed
geophysical surveying
may
help
to
locate
a
sulphide
body
at
depth.

Future drilling

The
Company
expects
to
commence
an
approx.
10,000m
aircore
drilling
program
over
the
Gossans Galore
and
Gravel
Pit
areas.
A
update
will
be
provided
to
the
market
on
commencement
of
the program.

Corporate Update

The
Board
appointed
Mr
Trent
Franklin
to
the
position
of
Non-­‐Executive
Chairman
after
the
resignation of
the
long
serving
Brian
Gomez.
Mr
Franklin
is
a
qualified
geologist
with
a
strong
track
record
of corporate
experience.
He
is
currently
the
Managing
Director
of
Enrizen
Financial
Group,
and
formerly
a director
of
the
Australian
Olympic
Committee
Inc
and
Australian
Water
Polo
Inc.
He
is
also
a
Fellow
of the
Australian
Institute
of
Company
Directors.

The
Company
is
also
conscious
of
minimizing
administrative
overheads,
and
it
is
pleasing
that administration
expenses
for
the
quarter
were
only
approximately
$84,000;
significantly
less
than
many comparable
companies.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Scott Jarvis, the Head Geologist at Gateway Mining, a member of the Australian Institute of Geoscientists. Mr Scott Jarvis has a minimum of 5 years’ experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Minderal Resources and Ore Reserves”. Mr Scott Jarvis consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.