AI assistant
ORA BANDA MINING LTD — Capital/Financing Update 2016
Nov 23, 2016
65475_rns_2016-11-23_1739313b-7117-4182-a3a4-caba6687cddc.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
24 November 2016
ASX ANNOUNCEMENT
CALLION DRILLING RETURNS 6.7M @ 11.03 g/t Au
HIGHLIGHTS
-
A total of 7 holes have been completed since July 2016, currently awaiting assays on 5 of these.
-
Results to date confirm the presence of significant mineralisation below the deepest level (approximately 250 metres below surface) of the existing workings within the south plunging “Main Lode” (ML) shoot.
Results from two holes include:
BOARD OF DIRECTORS
Mr Michael Fotios Executive Chairman
Mr Craig Readhead Non-Executive Director
Mr Alan Still Non-Executive Director
Ms Shannon Coates Company Secretary
6.7m @ 11.03 g/t Au 2.4m @ 1.23 g/t Au
Eastern Goldfields Limited (ASX: EGS) ( Eastern Goldfields or the Company ) is pleased to announce results from additional diamond drilling at its Callion Deposit ( Callion ), located approximately 12km southwest west of the Company’s Davyhurst Mill (Figure 1).
Drilling has continued on the Callion deposit with strong gold mineralisation intersected in CNDD007, returning 6.7m @ 11.03g/t Au, approximately 60 metres south of hole CNDD004, which returned 7.7m @ 9.35g/ t Au (see ASX announcement dated 28 July 2016). The Company currently awaits assays on a further 5 holes which are expected within the next 3-4 weeks.
Executive Chairman Michael Fotios said:
ISSUED CAPITAL
Shares: 489m Options: 50m Current Share Price: $0.23 Market Capitalisation: $112.5m Cash as at 30/9/2016: $5.5m
“This drilling continues to enhance the underground mining potential of the deposit and we remain focused on quantifying this in the short term. We will also swing additional drilling resources into evaluating the open pit cut back potential. It is a busy time for the team but the Callion results are holding our attention with Reverse Circulation drilling resources now redeployed here.”
Historically the deposit has produced in excess of 280,000 tonnes @ 10.2g/t Au for approximately 92,000 ounces. Callion was mined via both open pit and underground methods. In the past year, significant time was spent on historical data compilation of open pit grade control drilling and underground mining records including mine survey, geological and structural mapping, gold assay sampling and Resource and Reserve estimate plans.
All historical hard copy information is now digitally captured and spatially located. This data set provided the basis of establishing an Exploration Target of 350-450,000 tonnes @ 10-14g/t Au, as previously released ( see ASX announcement 28 January 2016).
Note: The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. Refer to “Callion Exploration Target – Additional Information” for further information.
1
==> picture [50 x 50] intentionally omitted <==
==> picture [533 x 533] intentionally omitted <==
Figure 1: Project Location Plan
2
==> picture [50 x 50] intentionally omitted <==
==> picture [702 x 418] intentionally omitted <==
Figure 2: Callion Long Section, looking west, showing underground infrastructure, south plunging exploration target and recent drill intercepts
3
==> picture [50 x 50] intentionally omitted <==
Callion Exploration Target – Additional Information
Basis for the Callion Exploration Target:
The Exploration Targets were calculated using historic data that was collated by Eastern Goldfields. The data consisted principally of channel sample assays and ore thicknesses and RC and diamond drill intersections. Lubbock compiled these data into mine blocks with associated grades and tonnages. Historical survey, geology and assay records were used to create a 3-dimensional model of the underground workings. The channel samples were collected across the width of the drive and/or stope face, generally perpendicular to the strike of the structure that controls mineralisation. Sample and assay methods of underground channel samples is unknown. RC drill sample were collected at 1m intervals and diamond core was cut to geological intervals. Assay methods of drillhole samples was by aqua regia or fire assay using accredited laboratories. In total, there are 1608 stope samples, 947 face samples and 13 drill hole samples used within the area of calculated Exploration Target.
Techniques for Calculating the Grade and Tonnage Ranges for the Callion Exploration Target:
Hard copy survey and geology plans and long sections were digitised and registered in 3-dimensional space. A 3-dimensional model of the ore zones was constructed from the registered plans and drillhole data. Gold assay grades and widths were digitised from the plans. Due to the narrow and variable width of the orebody the estimation was based on an accumulation method. The accumulation varible (GramMetres = Width*Au Grade) and the Width were estimated (Ordinary Kriging) into a block model. The grade was back-calculated by dividing the estimated GramMetres by the estimated Width. A specific gravity of 2.7 t/m3 for fresh rock was applied based on 22 core samples.
Planned Exploration work:
In the short term (2016) Eastern Goldfields plans to continue drilling to evaluate the geology, grade and width of the target. Drilling will target remnant pillars and areas below current mining depths. Samples will be submitted to accredited laboratories for gold assay with a full suite of QAQC samples (blanks, standards and field duplicates). If this drill program is deemed successful a geological and resource model will be produced. The resource model will be classified as inferred/indicated as deemed appropriate.
4
==> picture [50 x 50] intentionally omitted <==
==> picture [456 x 586] intentionally omitted <==
Figure 3 – Callion plan view showing drill hole locations and open pit
5
==> picture [50 x 50] intentionally omitted <==
Investor Enquiries
Michael Fotios Jon Snowball Executive Chairman FTI Consulting T: +61 8 6241 1888 T: +61 477 946 068 E : [email protected] E: [email protected]
Competent Person Statement
The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Michael Thomson, an employee of Eastern Goldfields Limited, who is Member of the Australian Institute of Geoscientists. Mr Thomson has sufficient 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 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Thomson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to historic Exploration Results and Mineral Resources is based on information compiled by Mr Michael Thomson, an employee of Eastern Goldfields Limited, who is Member of the Australian Institute of Mining and Metallurgy. Mr Thomson has sufficient 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 and 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been modified from the original announcement and, in the case of estimates of Mineral Resources, all material assumptions and technical parameters underpinning the estimates in the initial announcement continue to apply and have not materially changed. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
Forward Looking Statements
Eastern Goldfields Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Eastern Goldfields Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.
6
==> picture [50 x 50] intentionally omitted <==
Appendix 1: Significant Intersections Table
| Hole | MGA Northing |
MGA Easting |
MGA RL | MGA Azimuth |
Dip | Max Depth |
From | To | Interval (m) |
Grade (g/t) |
Gram metre |
Company |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CNDD005 | 6665247 | 267415 | 476 | 306.4 | 246.7 | 249.1 | 2.4 | 1.23 | 3.0 | EGS | ||
| CNDD007 | 6665311 | 267423 | 474 | 354.5 | 269.3 | 276.0 | 6.7 | 11.03 | 73.9 | EGS | ||
| Including | 273.9 | 275.0 | 1.1 | 44.44 | 48.9 | |||||||
| Including | 275.0 | 276.0 | 1.0 | 11.23 | 11.2 |
Previously Results Released to ASX on 28/7/2016
| CNRC091 | 6665399 | 267251 | 474 | 259 | -60 | 90 | 78 | 80 | 2.00 | 1.15 | 2.3 | EGS |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CNRC092 | 6665344 | 267277 | 474 | 259 | -60 | 96 | 71 | 72 | 1.00 | 1.35 | 1.4 | EGS |
| CNDD004 | 6665342 | 267262 | 473 | 259 | -60 | 270.1 | 191.8 | 192.1 | 0.3 | 19.97 | 6.0 | EGS |
| Including | 232.1 | 239.7 | 7.7 | 9.35 | 71.5 | |||||||
| 232.1 | 234.5 | 2.5 | 20.67 | 50.6 | ||||||||
| 236.8 | 239.7 | 2.9 | 6.35 | 18.4 | ||||||||
| CNDD011 | 6665489 | 267402 | 474 | 259 | -60 | 389 | 250.5 | 250.9 | 0.5 | 8.78 | 4.0 | EGS |
| DDHCS1 | 6665763 | 267352 | 485 | 260 | -60 | 341.7 | 327.0 | 327.9 | 0.9 | 6.30 | 5.7 | Lubbock |
| DDHCS1W1 | 6665763 | 267352 | 485 | 260 | -60 | 349 | 336.7 | 337.0 | 0.3 | 3.30 | 1.0 | Lubbock |
| DDHCS2 | 6665779 | 367435 | 485 | 260 | -60 | 437 | 185.0 | 186.0 | 1.0 | 4.50 | 4.5 | Lubbock |
| Including | 433.8 | 434.0 | 0.2 | 7.50 | 1.5 | |||||||
| DDHCS3 | 6665670 | 267447 | 485 | 260 | -60 | 436 | NSI | Lubbock | ||||
| CS4 | 6665282 | 267517 | 485 | 260 | -60 | 384.9 | 372.6 | 372.9 | 0.3 | 2.50 | 0.8 | Lubbock |
| CS5 | 6665187 | 267553 | 485 | 260 | -60 | 443.9 | 405.0 | 405.7 | 0.7 | 9.00 | 6.4 | Lubbock |
| CS6 | 6665123 | 267638 | 485 | 260 | -60 | 555.8 | NSI | Lubbock | ||||
| CS6W1 | 6665123 | 267638 | 485 | 260 | -60 | 530 | 457.1 | 467.6 | 10.5 | 17.20 | 180.6 | Lubbock |
No upper cut applied, Significant intersections greater than 1g/t, 2m maximum internal waste, Current drilling - 50g Fire assay with AAS finish on half diamond core, Coordinates in MGA94 zone 51.
7
==> picture [50 x 50] intentionally omitted <==
JORC CODE, 2012 EDITION – TABLE 1 REPORT TEMPLATE
Section 1 Sampling Techniques and Data
Information for historical (Pre Eastern Goldfields Limited from 1996 and 2001) drilling and sampling has been extensively viewed and validated where possible. Information pertaining to historical QAQC procedures and data is incomplete but of a sufficient quality and detail to allow drilling and assay data to be used for resource estimations. Further, Eastern Goldfields Limited has undertaken extensive infill and confirmation drilling which confirm historical drill results. Sections 1 and 2 describe the work undertaken by Eastern Goldfields Limited and only refer to historical information where appropriate and/or available.
(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 channels, | • | METALLGESELLSCHAFT - 1m RC drilling with composite samples of |
| techniques | random chips, or specific specialised industry | 2m in length and 1m in areas of quartz veining or areas of interest | ||
| standard measurement tools appropriate to the | were by AAS or fire assay at Comlabs. | |||
| minerals under investigation, such as down hole | RAB assay methods unknown Diamond drilling details unknown but | |||
| gamma sondes, or handheld XRF instruments, etc). | were assayed using Fire Assay | |||
| • | These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. |
• |
EGL DD – Half core samples, cut by saw. Samples intervals selected by geologist and defined by geological boundaries. Minimum sample length is 0.3m, maximum 1.5m. Samples are crushed, pulverized and a 40g charge is analysed by Fire Assay. |
|
| • | Aspects of the determination of mineralisation that | |||
| are Material to the Public Report. | ||||
| • | In cases where ‘industry standard’ work has been | |||
| done this would be relatively simple (eg ‘reverse | ||||
| circulation drilling was used to obtain 1 m samples | ||||
| from which 3 kg was pulverised to produce a 30 g | ||||
| charge for fire assay’). In other cases more | ||||
| explanation may be required, such as where there is | ||||
| coarse gold that has inherent sampling problems. | ||||
| Unusual commodities or mineralisation types (eg | ||||
| submarine nodules) may warrant disclosure of | ||||
| detailed information. | ||||
| Drilling | • | Drill type (eg core, reverse circulation, open-hole | • | METALLGESELLSCHAFT - RAB, RC and Diamond details of which are |
| techniques | hammer, rotary air blast, auger, Bangka, sonic, etc) | unknown for all types. Diamond drilling included tails and wedges | ||
| and details (eg core diameter, triple or standard tube, | • |
EGL DD - HQ3 through incompetent/oxidised ground, then NQ2 to | ||
| depth of diamond tails, face-sampling bit or other | BOH. All core oriented using camteq instrument. | |||
| type, whether core is oriented and if so, by what | ||||
| _method, etc). _ | ||||
| Drill sample | • | Method of recording and assessing core and chip | • | Historic operators have not captured recovery data. However, |
| recovery | sample recoveries and results assessed. | mention is made of minor core loss (10cm) in hole CS4. A wedge | ||
| • | Measures taken to maximise sample recovery and | was drilled to achieve full recovery in the ore zone. | ||
| • | 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. |
• • |
EGL – Core is measured by tape, comparing back to down hole core blocks, consistent with industry practice. Recoveries are recorded as a percentage calculated from measured core verses drilled intervals. Core recoveries were good. There is no known relationship between sample recovery and grade. |
|
| Logging | • | Whether core and chip samples have been | • | Lubbock – Qualitative logging, noting lithology, veining, alteration |
| geologically and geotechnically logged to a level of | and sulphides. | |||
| detail to support appropriate Mineral Resource | • | EGL - Core logging is completed by Company Geologists who log | ||
| estimation, mining studies and metallurgical studies. | lithology, alteration, mineralization and structure to industry | |||
| • | Whether logging is qualitative or quantitative in | standards. Logging is qualitative, estimates are made of sulphide | ||
| nature. Core (or costean, channel, etc) photography. | and alteration percentages. | |||
| • | The total length and percentage of the relevant | • | Entire holes are logged. | |
| intersections logged. | ||||
| Sub- | • | If core, whether cut or sawn and whether quarter, | • | Lubbock |
| sampling | half or all core taken. | • | EGL DD – Core was sawn and half core sampled. Sample intervals are | |
| 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 |
defined by a qualified geologist to honour geological boundaries. All mineralised zones are sampled, in addition to barren core either side of mineralised zones. Following drying to constant mass, all samples |
|
| appropriateness of the sample preparation technique. | are totally pulverised to nominally 90% passing a 75µm screen. |
8
| Criteria | **JORC Code explanation ** | Commentary | ||
| • | Quality control procedures adopted for all sub- | |||
| sampling stages to maximise 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 the | • | Lubbock |
| assay data | assaying and laboratory procedures used and | • | EGL DD – samples sent to Bureau Veritas laboratory in Kalgoorlie. | |
| and laboratory tests |
• | whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining |
The samples have been analysed by firing a 40 gm (approx) portion of the sample. Lower sample weights may be employed for samples with very high sulphide and metal contents. This is the classical fire |
|
| the analysis including instrument make and model, | assay process and will give total separation of gold. An AAS finish is | |||
| reading times, calibrations factors applied and their | used. Commercially prepared standard samples and blanks are | |||
| derivation, etc. | inserted in the sample stream at a rate of 1:10. Sizing results | |||
| • | Nature of quality control procedures adopted (eg | (percentage of pulverised sample passing a 75μm mesh) are | ||
| standards, blanks, duplicates, external laboratory | undertaken on approximately 1 in 40 samples. The accuracy | |||
| checks) and whether acceptable levels of accuracy (ie | (standards) and precision (repeats) of assaying are acceptable. | |||
| lack of bias) and precision have been established. | ||||
| Verification | • |
The verification of significant intersections by either | • | EGL geologists have not viewed significant intersections from |
| of sampling | independent or alternative company personnel. | historic drilling. | ||
| and assaying |
• • |
The use of twinned holes. Documentation of primary data, data entry |
• • |
Holes have not been planned to specifically twin historic intercepts. Geological and sample data logged directly into field computer at |
| procedures, data verification, data storage (physical | the core yard using Field Marshall. Data is transferred to Perth via | |||
| and electronic) protocols. | email and imported into Geobank SQL database by the database | |||
| • | Discuss any adjustment to assay data. | administrator (DBA). Assay files are received in .csv format and | ||
| loaded directly into the database by the DBA. Hardcopy and/or | ||||
| digital copies of data are kept for reference if necessary. | ||||
| • | No adjustments are made to any assay data. First gold assay is | |||
| utilised for anyreporting. | ||||
| Location of | • |
Accuracy and quality of surveys used to locate drill | • | Lubbock - |
| data points | holes (collar and down-hole surveys), trenches, mine | • | EGL DD - Drill hole collar positions are picked up using a Trimble | |
| workings and other locations used in Mineral | DGPS subsequent to drilling. Down hole surveys taken every 30m | |||
| Resource estimation. | using a reflex instrument. | |||
| • | Specification of the grid system used. | • | Topography controlled by Callion mine surveyors, pit and surrounds | |
| • | Quality and adequacy of topographic control. | last surveyed in 2005 at end of last mining episode. | ||
| Data | • | Data spacing for reporting of Exploration Results. | • | Data spacing from current and historic deep diamond drilling is |
| spacing | • | Whether the data spacing and distribution is | sufficient to establish geological continuity up and down dip and | |
| and distribution |
sufficient to establish the degree of geological and grade continuity appropriate for the Mineral |
• | along strike. Data spacing is insufficient for resource estimation. Sample compositing has not been applied and will only be applied at |
|
| Resource and Ore Reserve estimation procedure(s) | the resource estimation stage. | |||
| and classifications applied. | ||||
| • | Whether sample compositing has been applied. | |||
| Orientation | • | Whether the orientation of sampling achieves | • | The orientation of the ore body is north-north-west striking and |
| of data in | unbiased sampling of possible structures and the | steep west dipping. Drill holes are drilled at -60 to 070o | ||
| relation to | extent to which this is known, considering the deposit | perpendicular to the mineralised trend. | ||
| geological structure |
• | type. If the relationship between the drilling orientation |
• | It is unknown but unlikely that the drilling orientation biases the sampling. |
| and the orientation of key 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 security. | • | Unknown for earlier operators. |
| security | • | EGL – Samples are bagged, tied and in a secure yard. Once | ||
| submitted to the laboratories they are stored in cages within a | ||||
| secure fenced compound. Samples are tracked through the | ||||
| laboratoryvia their LIMS. | ||||
| Audits or | • | The results of any audits or reviews of sampling | • | No audits of sampling techniques and data has been done. |
| reviews | techniques and data. |
9
==> picture [50 x 50] intentionally omitted <==
Section 2 Reporting of Exploration Results
| Section 2 Reporting of Exploration Results | Section 2 Reporting of Exploration Results | Section 2 Reporting of Exploration Results | ||
|---|---|---|---|---|
| (Criteria listed in theprecedingsection also applyto this section.) | ||||
| Criteria | **JORC Code explanation ** | Commentary | ||
| Mineral | • | Type, reference name/number, location and | • | Callion deposit is on Tenement M30/103, held by Carnegie Gold Pty. |
| tenement and | ownership including agreements or material | Ltd., a wholly owned subsidiary of Eastern goldfields Ltd. The | ||
| land tenure | issues with third parties such as joint ventures, | tenement is in good standing. | ||
| status | partnerships, overriding royalties, native title | • | There are no heritage issues. | |
| 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. | ||||
| Exploration | • | Acknowledgment and appraisal of exploration | • | Gold was discovered at Callion in about 1895. Mining took place |
| done by other | by other parties. | between 1899 and 1911 by three public listed companies. Western | ||
| parties | mining re-opened the mine in 1938 and continued until 1956. | |||
| Lubbock re-opened the mine in 1988, and established open pit | ||||
| mining. Exploration drilling started in the early 1980’s and continued | ||||
| through to the mind 2000’s, when the project was held by Croesus | ||||
| mining. Little work has taken place at the deposit since then. | ||||
| Assessment of work practised by previous companies has been | ||||
| completed and practises were considered to be “industry standard” | ||||
| of the time. | ||||
| Geology | • | Deposit type, geological setting and style of | • | Callion deposit is within a 1500m thick sequence of basalt that |
| mineralisation. | displays pillow structures, amygdules, and rare variolitic flows. | |||
| Intruded into the basalt is ~1000m of dolerite spread over two dozen | ||||
| discrete sills ranging from 20m to 200m thick. The intrusions are | ||||
| generally conformable with the Lady Mary Sill to the west, although | ||||
| the dolerite intrusions do strike N-S along the eastern side of the | ||||
| mapped area. West of Callion the stratigraphy dips on average at 45o | ||||
| to the east and becomes steeper towards the east. Strain in the | ||||
| Callion-Glasson area is strongly heterogenous, being confined into | ||||
| narrow shear zones, leaving nearby country rock relatively | ||||
| undeformed. Underground observations show quartz veining is often | ||||
| drag folded and can reach up to 10m in width Geology mapping of | ||||
| ore drives by WMC in the 1950’s shows asymmetric drag folding and | ||||
| isoclinal folding. The plunge of fold axes is dominantly to the south | ||||
| and varies from 20oto 70o, averaging 42o. There is a strong shoot | ||||
| control on the mineralisation, the shoot plunging at 35oto 45o | ||||
| towards the south. | ||||
| • | Within the underground mine the orebody consists of a quartz vein | |||
| that varies considerably in width within a shear zone. The quartz vein | ||||
| has considerable strike length and is observed in outcrop mapping | ||||
| over 200m to the south of Callion pit. To date mining concentrated | ||||
| on the footwall (west) reef, though subsidiary quartz veins occur in | ||||
| the immediate hanging and footwall rocks of the main ore body. | ||||
| Gold occurs mainly within the quartz reef associated with sulphides. | ||||
| Annotation of geology plans by WMC suggest the country rock, | ||||
| where strongly sheared is also mineralised. The dominant sulphides | ||||
| are pyrite with lesser chalcopyrite and pyrrhotite. From past records | ||||
| there is a good correlation between sulphide content and gold | ||||
| grades. | ||||
| Drill hole | • | A summary of all information material to the | • | Too many holes to practically list the complete dataset. Hole |
| Information | understanding of the exploration results | locations for historic drilling can be seen on the plan. | ||
| including a tabulation of the following | • | Information on selected diamond drilling shown on the long section | ||
| information for all Material drill holes: | is presented in the table of significant intercepts. | |||
oeasting and northing of the drill hole collar |
||||
oelevation or RL (Reduced Level – elevation |
||||
| above sea level in metres) of the drill hole | ||||
| collar | ||||
odip and azimuth of the hole |
||||
odown hole length and interception depth |
||||
ohole 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. |
10
| Criteria | **JORC Code explanation ** | Commentary | ||
| Data | • | In reporting Exploration Results, weighting | • | Original assays are used. No upper cut applied. Significant |
| aggregation | averaging techniques, maximum and/or | intersections are length weighted, greater than 1g/t, 2m maximum | ||
| methods | minimum grade truncations (eg cutting of high | internal waste. | ||
| grades) and cut-off grades are usually Material | • | No metal equivalents reported. | ||
| 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 important | • | Intercept widths are down hole lengths. Exact geometry of the |
| between | in the reporting of Exploration Results. | mineralisation in relation to the drill orientation is unknown for | ||
| mineralisation widths and intercept lengths |
• • |
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole |
historic holes as the strike and dip of the structure at depth is variable. True widths not reported. |
|
| 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 scales) | • | See plans and sections. |
| and tabulations of intercepts should 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 | • | Results from all holes in the current drilling have been reported. |
| reporting | Exploration Results is not practicable, | • | All results from historic deep diamond drilling have been reported. | |
| representative reporting of both low and high | ||||
| grades and/or widths should be practiced to | ||||
| avoid misleading reporting of Exploration | ||||
| Results. | ||||
| Other | • | Other exploration data, if meaningful and | • | Review and compilation of historic mining plans. |
| substantive | material, should be reported including (but not | |||
| exploration data | 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 work | • | The nature and scale of planned further work | • | Data review and additional drilling to test down-plunge extents of |
| (eg tests for lateral extensions or depth | the mineralised shoot. | |||
| extensions or large-scale step-out drilling). | ||||
| • | Diagrams clearly highlighting the areas of | |||
| possible extensions, including the main | ||||
| geological interpretations and future drilling | ||||
| areas, provided this information is not | ||||
| commercially sensitive. |
11