WHITEHEADS PROJECT
- Main prospects and surface geology with significant drill intercepts.
- Regional geophysics have delineated additional targets.
- Strategic position adjacent to Carrick Gold Limited's Lindsays Project. 6.84million tonnes @ 2.63 g/t gold for 576,576 ounces.
- RAB drilling planned to follow up previous results of 18 metres @ 1.36g/t gold.
- The Whiteheads tenement package represents a consolidated landholding of 255 square kilometres in an area adjacent to the Gindalbie mining centre, which has historically produced 45,000 ounces of gold.
The main targets are medium to large tonnage gold deposits potentially exploitable by open pit and underground mining methods and a number of soil geochemical anomalies have been identified. Previous drilling by earlier explorers has tested the majority of these anomalies but only to shallow depths. The Company believes that the drilling completed to date is not comprehensive and has not fully explored the potential for mineralisation along strike and at depth.
During 2006, the granting of E27/175 enabled the Company to undertake a major rotary air blast ("RAB") drilling programme of 202 holes for 14,207 metres across the inferred position of several major regional shear and lithological boundaries. The drilling was along lines spaced up to 1.4 kilometres apart and targeted interpreted trends of gold mineralisation associated with soil geochemical anomalies and a north west trending set of fault structures around Jubilee Well.
The drilling intersected a number of zones where alteration and oxidation extended to depths of up to 150 metres and these are interpreted to reflect the sheared contact zones between the mafic rocks to the west and the felsic to intermediate rocks to the east. Strongly weathered remnant pyrite and quartz veining was recorded within the highly altered basalt and felsic porphyry host rocks.
Elsewhere in the Whiteheads project are several anomalous drill targets including a small gold resource (less than 10,000 ounces, JORC status unknown) delineated on the Seven Leaders prospect. Deeper drilling of the Seven Leaders prospect failed to expand the resource at depth however the mineralisation is poorly understood and remains open along strike to the south east.
Exploration drilling is expected to recommence in the second half of 2007.
