JACKSON PROJECT
The Jackson project is located approximately 100 kilometres north of Southern Cross in Western Australia and covers 730 square kilometres of the Barlee greenstone belt, including favourable greenstone lithologies for Archaean gold mineralisation. The six southern most tenements include deeply weathered and laterite capped greenstone/granite lithologies which are considered prospective for nickel and gold.
A review of the previous exploration within the Company's tenements indicates that they are prospective for structure related gold deposits and ultramafic associated nickel deposits. Transported cover overlies a high percentage of the area and planned field work will provide a base map for areas suitable for geochemical sampling. The Company also believes previous surface sampling in some covered areas may have been inappropriate and RAB and aircore drilling are proposed to collect reliable geochemistry. It is also noted that most of the significant gold mineralisation discovered to date is related to prominent banded iron formations and the structure hosted mafic lithologies, which lie beneath much of the covered areas, are under explored.
In the region, several small resources have been delineated by International Goldfields Ltd ("IGL") for a total resource of 1.3 million tonnes for 123,000 ounces of gold. Internal scoping studies by IGL indicate a positive cash flow but the economics are limited by the capital cost of a stand alone milling operation.
The Company believes that this area is under explored and that the potential for the discovery of economic gold deposits is high and that these may in turn offer synergies with existing resources.
Wide spaced RAB drilling is planned following the completion of a heritage survey over the area.