Eastern Goldfields Project

The Eastern Goldfields Project in Western Australia covers an area of approximately 850km2. The tenement package was rationalised significantly during the year to reduce holding cost and expenditure commitments. The Company has retained the tenement areas that it considers to be most prospective for gold discoveries.  The tenement package covers Archaean greenstones within the highly prospective Eastern Goldfields Province of the Yilgarn Craton. The core project area is centered approximately 120km east of Kalgoorlie.

The tenements cover positions on the two major NW-SE trending regional structural domains known as the Keith Kilkenny Tectonic Zone and the Laverton Tectonic Zone. The Laverton Tectonic Zone alone hosts over 20 individual gold deposits which cumulatively contain in excess of 27 million ounces of gold. The two largest gold deposits on this structure being the 10+ million ounce Sunrise Dam deposit and the 5+ million ounce Wallaby deposit.

The Eastern Goldfields Project area is predominately situated between Silver Lake Resources Ltd’s Randalls, Maxwell’s and Santa gold deposits at the southern end of the tenement package and Saracen Minerals Ltd’s Carosue Dam Gold Project in the northern area of the tenement package. 

Within the Eastern Goldfields Project area, the Company is primarily focussed on the Pinjin Gold Project, Yilgangi Gold Project and Porphyry North Project.

The Pinjin Gold Project covers the Rebecca Palaeochannel system that is host to numerous palaeochannel gold intersections of up to 30g/t gold.  The Company acquired its interest in the Pinjin Gold Project from Newmont in 2010 with an objective of discovering the primary source of the palaeochannel gold.  Drilling has intersected significant insitu gold mineralisation within a complex geological package beneath and adjacent to the Rebecca Palaeochannel system over a length of 5km.  Drilling results to date from this structure include; 5.9m @ 7.2g/t Au from 89.7m, 33m @ 3.1g/t Au from 51m, 2m @ 9.98g/t Au from 72m, 2m @ 8.47g/t Au from 93m and 12m @ 2.96g/t Au from 73m.   Both the style and geological setting are comparable to the initial discovery of Sunrise Dam, which is approximately 100km to the north, in the same structural domain. 

Further to the north, the Company holds an 80% joint venture interest in the Yilgangi Gold Project which was acquired from Newcrest.  The other 20% interest in the Yilgangi Joint Venture is held by Jindalee Resources Limited (“Jindalee”). Under the Yilgangi Joint Venture agreement Jindalee’s interest is ‘carried’ via a limited recourse loan up to a decision to mine date. 

The Yilgangi Gold Project straddles the Keith-Kilkenny Fault within the Edjudina Greenstone Belt of the Yilgarn Craton. The Edjudina Greenstone Belt within the vicinity of the project area consists of basalt, dolerite, felsic volcaniclastics and volcanics and minor ultramafic units.  Within the Yilgangi project area the Edjudina Greenstone Belt is intruded by numerous monzonite, syenite and felsic porphyries. The Yilgangi project area appears to be situated on a major dilational jog and the intrusives are focussed within this zone. 

A number of saprolite gold anomalies have defined at Yilgangi with most attention on the Hobbes prospect where a +3 kilometre long saprolite gold anomaly (+50ppb gold) has been identified. Drilling to date has been predominately focussed on the southern portion of the Hobbes anomaly.  Significant intersections (+20g/m) drilled at the Hobbes prospect include; 15m @ 2.4g/t Au from 38m, 20m @ 2.2g/t Au from 166m, 10m @ 2.5g/t Au from 54m, 32m @ 1.4g/t Au from 69m, 20m @ 1.9g/t Au from 58m, 17m @ 1.8g/t Au from 53m, 21m @ 1.9g/t Au from 58m, 18m @ 3.0g/t Au from 87m and 10m @ 6.9g/t Au from 128m.