WALLBROOK & KALGOORLIE NORTH PROJECT
The Company's Wallbrook Project is joint ventured to Jackson Gold Ltd, who are earning an 80% interest in Exploration License 31/571 by spending $250,000 over three years. Jackson has been aggressively drilling its own Wallbrook tenements to define additional gold resources and recently announced that it had increased its resources on its own Wallbrook project to 423,500 ounces of gold.
The joint venture tenement is adjacent to Jackson's Crusader Deposit and Jackson's Wallbrook tenements are approximately two kilometres south east of the joint venture tenement. New geological models indicate potential mineralised structures may continue to the west and northwest into the joint venture tenements.
On the joint venture tenement, a reconnaissance soil sampling programme of 207 samples on a grid of 80x320 metre spacing returned a peak value of 26 parts per billion (ppb) gold against a background of 4.8 ppb gold. A review of the soil results seems to indicate that there may be a similar structural trend to the Wallbrook mineralisation and mapping has also identified a major lithological contact which may correlate with St Barbara Mines Limited's Far East prospect 15 kilometres to the southeast. Further investigation of these areas is anticipated and the Company is confident that Jackson will continue to develop the joint venture tenement as part of its search for additional gold resources.
At Kalgoorlie North, the tenements consist of 6 granted prospecting licences and 4 prospecting licence applications covering an area of 16 square kilometres. These tenements form part of Jackson's larger Kalgoorlie Gold Project but have been farmed out in an exploration and mining agreement with Placer Dome Asia Pacific Limited ("Placer") in which Placer shall conduct the exploration in the area.