Operations

THE EDIE CREEK PROJECT

 

 

CURRENT EDIE CREEK OPERATIONS

 

MINING & PROCESSING

 

The mine has a current workforce of approximately 40 staff, who are currently carrying out pilot scale mining, ore processing, gold/silver production, resource drilling, mine planning, road maintenance, security and community affairs work.


An intensive geological work program has been underway since October 2011. Joint venture partner Mincor Resources has carried out an intensive program of data compilation, geological mapping, soil and rock sampling, a detailed ground magnetic survey and a systematic diamond drilling program which was completed in March 2013. This specifically targeted the depth and plunge extent of the Enterprise lodes as well as the potential for extensions and adjacent lodes in order to test for economic gold mineralisation that is mineable by underground methods. Approximately 2700 metres was drilled in the this program.

 

In April 2013, Niuminco commenced the first stage of a potential three stage drilling program to test two defined potential bulk tonnage, lower grade targets, with the drilling of two diamond core drillholes to a combined depth of up to 650m.  These two holes were completed in May 2013; the first hole to a depth of 313m and the second to a depth of 314m (after abandoning an earlier attempt at 91m).

 

Production for the period 1 July, 2014 to 30 June, 2015 was 36,473g (1,172.8 ounces) of gold and 30,716g (987.6 ounces) of silver for total sales of AUD$1,626,354 (PGK 3,544,800).  A total of 1526.4 wet tonnes of ore was processed at an average grade of 23.9 grams per processed tonne of ore.  The average monthly gold production over the 2015 financial year was 3039 grams or 97.7 ounces per month.  The level of production and sales over the first three Quarters of the financial year were sufficient to cover the Edie Creek Mine’s operating costs, as well as the PNG administration costs.


However, production and sales volumes in the June 2015 Quarter were significantly lower than previous monthly averages due to mechanical problems with both excavators, high rainfall events and lower ore grades which negatively affected mining and delivery of ore to the gold room and consequently gold/silver production.
Although ore production and processing returned to average 6.5. to 7 tonnes per day for the September Quarter to total 612 tonnes of processed ore, lower ore grades of 8.9 grams per tonne continued through the Quarter. This resulted in production of 5461 grams(175.6 ounces) of gold and 4686 grams (150.7 ounces) of silver for total quarterly sales of $262,000 (PGK 528,821).


To ensure continuity (and expansion) of ore supply, extensions of existing mined vein systems (Alpha South, Alpha North and Mounts) and the unmined Enterprise vein system are being developed.


During the current commissioning of the ball mill it has also become apparent that to overcome bottlenecks in the circuit with respect to ore feed and slurry discharge, the early addition of a planned crusher, concentrator, a new slurry pump and a new sump pump are necessary. Delivery of the pumps is expected in the next 30 days, and orders will be placed shortly for the crusher and concentrator (at a cost of $40,000) with a delivery time of approximately 5 to 7 weeks. These items will enhance the gold room’s capacity to increase the rate of ore processed from 6.5 tonnes per day to approximately 20+ tonnes per day, which will importantly, compensate for the eventuality of continuing relatively lower grade ore should this occur.

 

 

DRILLING

 

An expanded drilling program of up to 18 holes in the next 12 months has commenced with the first hole (EDD 017) completed to a depth of 154.5 metres. This hole further tested the Edie Creek diatreme and the eastern extension of the Alpha South vein system where current mining is taking place and assay results are currently awaited. The second hole (EDD 018) is currently at a depth of 156 metres, with a planned depth of 170 metres. 

 

 

The current exploration drilling plan is shown here.

 

Drilling

 

NIUMINCO GROUP LTD: EDIE CREEK PROJECT

DRILL REPORT & PROPOSAL – 30 JUNE, 2013

SUMMARY

 

  • Previous drilling focused on narrow northwest trending high grade low-sulphidation vein systems with potential for underground development.

 

  • The focus now is on potential bulk tonnage lower grade targets located around the intersection between the northwest trending high-grade veins and major north trending faults.

 

  • The largest target is the Karuka - Enterprise Stockwork and includes the Enterprise Diatreme and the narrow high-grade Enterprise and Karuka lodes proximal to the Slate Creek Fault.

 

  • Ease of access prompted the initial hole EDD 014 to be located on the southwestern periphery of the Karuka – Enterprise target. This hole was abandoned prematurely due to difficult ground conditions and EDD 016 was drilled nearby at a slightly different azimuth.

 

  • EDD 014 averaged 1.18g/t gold, and 72g/t silver in the 21m interval from 63m to 84m.

 

  • EDD 016 averaged 1.40g/t gold, and 17g/t silver in the 20m interval from 62m to 82m.

 

  • The second target is the Edie Creek Diatreme, which occupies the entire upper Edie Creek valley, and includes the Alpha South and Ingopae lodes, proximal to the Edie Creek Fault.

 

  • EDD 015 at Alpha South intersected the widest section of massive epithermal vein and stockwork to date: 62m from 199m to 261m at average of 0.28g/t gold, 1.7g/t silver.

 

  • An Induced Polarisation survey is recommended to cover the entire Edie Creek Diatreme. 

 

  • A 10 hole for 2000m program of Reverse Circulation drilling is proposed for the Karuka – Enterprise Stockwork

 

INTRODUCTION

 

The Niuminco – Mincor JV previously focused a core drilling program on the narrow high grade low sulphidation quartz – carbonate vein systems with potential for underground mining. The program was recently refocused on potential bulk tonnage lower grade targets incorporating shallow sections of several of the larger high grade veins. High level diatremes, maar sediments and adjacent vein stockworks were recognised as potential targets. Two main targets were defined. The largest potential target is centred on the recently recognised Enterprise Diatreme and includes the adjacent Enterprise - Karuka Stockwork and the narrow high-grade Enterprise and Karuka lodes. The second target is the Edie Creek Diatreme occupying the entire upper Edie Creek valley, and includes the Alpha South and Ingopae lodes. Both targets are located proximal to the intersection between the northwest main vein trend and the north trending Slate Creek Fault and Edie Creek Fault.  

   

 

 

Figure 1:  Edie Creek leases showing outlines of areas of diatreme (orange ellipses) and stockwork mineralisation (yellow ellipses) proposed as potential bulk tonnage gold targets, the area of outcrop of the Edie Porphyry, the trace of the main epithermal lodes and general location of the Upper Edie Creek Valley recessive topographic anomaly.

 

PREVIOUS RGC AND ECM DRILLI NG

 

In 1988 Renison Goldfields Consolidated Ltd (RGC) completed two drill holes testing Enterprise and Karuka North lodes, with narrow intersections in both (See Table 1).  

 

In 1997 Edie Creek Mining Pty Ltd (ECM) conducted a 12 hole PQ diamond drilling program over the Enterprise vein, totaling 1511.70m. Drilling focused on the upper 120m of the developed but unexploited workings (See Table 1). Intersections of primary ore in fresh rock returned lower grade results than those within the zone of oxidation. The best mineralized section was 5.2m @ 9.57Au, 53.8Ag from 124.7m in hole 97ENT005, including 2.0m @ 44.18 Au,  50.5 Ag from 127.6m.

 

Table 1: RGC and ECM drill summary

 

 

Hole_ID

 

mE

 

mN

 

RL

AZM

Mag

AZM TN

 

DIP

Depth

Year

 

Comments/Results

 

 Co.

 

EC001

 

461729

 

9186978

 

2132

 

40.0

 

45.7

 

-60

 

150.00

 

 1988

2m @ 5.79Au, 110 Ag from 76m, and                              6m

@ 3.70Au, 48Ag from 100m                                          (i ncl . 2m @ 7.24 Au, 110Ag from 100m)

 

RGC

EC002

461702

9187068

2096

40.0

45.7

-6

144.90

 

1988

2m @ 1.76Au from 20m and 2m @ 2.02Au from 52m

RGC

 

97ENT001

 

461756

 

9186947

 

2116

 

30.0

 

35.7

 

-50

 

135.80

 

1997

20.8m @  0 .95 Au, 12.9 Ag from 60.0m

(incl. 2.0m @ 2.13 from 61, and1.0m @ 8.22 Au from 79.1m)

 

ECM

 

97ENT002

 

461756

 

9186947

 

2116

 

30.0

 

35.7

 

-65

 

116.70

 

 1997

4.3m @ 4.81 Au, 16.5 Ag from 59.0m, and 10.1m @ 1.47 Au, 6.8 Ag from 81.3m (incl. 4.1m @ 2.48 Au, 7.8 Ag from 86.3m)

 

ECM

 

 

97ENT003

 

 

461756

 

 

9186947

 

 

2116

 

 

30.0

 

 

35.7

 

 

-85

 

 

151.00

 

 

1997

10.5m @   1.56 Au from 59.2m  (incl. 2.1m @ 2.60Au from 60.4m)

2 .0m @ 1.17 Au from 83.0m, and

1.0m @ 1.02 Au from 91.6m

 

 

ECM

 

97ENT004

 

461662

 

9186948

 

2132

 

30.0

 

35.7

 

-75

 

158.20

 

 1997

1.0m @ 1.94 Au, 22.6 Ag from 90.0m, and 2.0m @  4.26 Au, 35.7 Ag from 102.3m, and 1.0m @ 1.06 Au, 23.0Ag from 112.0m

 

ECM

 

97ENT005

 

461662

 

9186948

 

2132

 

30.0

 

35.7

 

-85

 

135.00

 

1997

1.9m @ 0.97 Au, 4.0 Ag from 94.7m, and 5.2m @ 9.57 Au, 53.8 Ag from 124.7m (incl. 2.0m @ 44.18 Au,  50.5 Ag from 127.6m)

 

ECM

97ENT006

461662

9186948

2132

30.0

35.7

-50

153.10

1997

1.0m @ 0.82 Au, 3.8 Ag from 105.7m

ECM

 

 

97ENT007

 

 

461573

 

 

9186967

 

 

2163

 

 

30.0

 

 

35.7

 

 

-70

 

 

186.50

 

 

1997

15.0m @   0.80 Au, 20.5 Ag from 124m

(incl . 1.0m @ 3.73 Au, 113 Ag from 124.0, and 1.0m @

1.34 Ag, 29.3 Ag from 131.0m)

1.0m @ 0.94 Ag, 38.0 Ag from 170.0m

 

 

ECM

97ENT008

461655

9187001

2151

30.0

35.7

-85

94.80

1997

1.9m @ 0.54 Ag, 46.2 Ag from 77.40m

ECM

 

97ENT009

 

461656

 

9187000

 

2151

 

30.0

 

35.7

 

-55

 

102.40

 

1997

6.8m @   3.37 Au, 78.4 Ag from 55.8m

(incl. 2.2m @ 8.44 Au, 134.5 Ag)

 

ECM

 

97ENT010

 

461744

 

9186953

 

2121

 

30.0

 

35.7

 

-65

 

61.60

 

1997

6.3m @ 4.48 Au, 101.0 Ag from 47.0m

(i ncl . 2.1m @ 9.97 Au, 160.0 Ag from 48.3m)

 

ECM

 

97ENT011

 

461793

 

9187112

 

2114

 

30.0

 

35.7

 

-55

 

102.40

 

1997

2.1m @ 4.01 Au, 36.0 Ag from 8.9m, and 1.0m @ 2.60 Au, 52.0 Ag from 37.7m, and 0.9m @ 1.92 Au, 79.0 Ag from 50.6m

 

ECM

 

 

 

97ENT012

 

 

 

461650

 

 

 

9187158

 

 

 

2142

 

 

 

30.0

 

 

 

35.7

 

 

 

-50

 

 

 

114.20

 

 

 

1997

3.0m @ 5.62 Au, 125.0 Ag from 9.1m, and 0.6m @ 1.72 Au, 37. Ag from 14m, and 1.2m @ 1.20 Au, 25.0 Ag from 31.9m, and 0.7m @ 1.18 Au, 158.0 Ag from 56.3m, and 1.0m @ 1.16 Au, 7.0 Ag from 9.6m, and 2.5m @ 1.02 Au, 10.0 Ag from 104.2, and 1.6m @ 1.36 Au, 13.0Ag, from 108.2m

 

 

 

ECM

 

 

PREVIOUS NIUMINCO AND MINCOR DRILLI NG

 

In 2010 Niuminco Ltd completed a 10 hole (EDD001-010) diamond drilling program totaling 1559.80m, testing Edie Lode No.1 and No. 2. Best intersection returned 5.0m @ 131.83g/t gold, 389.4g/t silver from 89.8m. In 2011 a further 2 hole (EDD012-013) drilling program totaled 339.10m, testing Whites Lode. Best results returned 30.0m @ 0.52g/t gold, 3.9g/t silver from 146.9m which included 10.0m @ 0.71g/t gold, 5.3g/t silver, and 1.0m @ 3.61g/t gold, 1.9g/t silver. Recent intercepts in EDD014-016 are included in Table 2 below.

 

Table 2: Niuminco Drilling Summary

 

 

Hole_ID

 

mE

 

mN

 

RL

AZM

Mag

AZM TN

 

DIP

Max_ Depth

Date_Completed

 

Comments/Results

 

Co

EDD001

 462677

9186034

2066.0

30.0

35.7

-45

130.50

19/09/10

2.0m @  1.12 Au , 18.4 Ag from 69.4m

NIU

 

EDD002

 

 462677

 

9186034

 

2065.8

 

29.0

 

34.7

 

-65

 

103.80

 

25/09/10

0.9m @ 1.52 Au, 56.5 Ag from 24.m

5.0m @ 131.83 Au, 389.4 Ag from 89.8m(incl. 0.7m @ 217.57 Au, 645.7 Ag from 89.8m)

 

NIU

 

 

 

EDD003

 

 

 

 

 462597

 

 

 

9186086

 

 

 

2077.5

 

 

 

29.0

 

 

 

34.7

 

 

 

-45

 

 

 

154.70

 

 

 

4/10/10

0.3m @ 2.25 Au, 19.5 Ag from 15.0m

0.4m @ 2.63 Au, 11.1 Ag from 19.3m

0.6m @ 1.32 Au, 10.0 Ag from 38m

0.3m @ 1.21 Au, 4.4 Ag from 39.3m

0.9m @ 2.82 Au, 3.5 Ag from 57.0m

1.0m @  10.55, 6.1 Ag from 87.7m

0.8m @ 3.23 Au, 91.9 Ag from 97.7m

 

 

 

NIU

 

 

EDD004

 

 

 462597

 

 

9186085

 

 

2077.5

 

 

25.0

 

 

30.7

 

 

-60

 

 

179.10

 

 

13/10/10

2.0m @ 1.35 Au, 2.9 Ag from 40.0m, and 4.0m @ 1.06 Au, 17.5 Ag from 79.7m, and 2.0m @  6.11 Au, 14.1 Ag from 97.0m, and 1.0m @ 5.88 Au, 23.1 Ag from 150.6m

 

 

NIU

 

 

EDD005

 

 

 462500

 

 

9186150

 

 

2094.5

 

 

29.0

 

 

34.7

 

 

-45

 

 

153.40

 

 

22/10/10

1.0m @ 1.29 Au, 30.1 Ag from 29.8m, and 1.0m @ 1.76 Au, 176.0 Ag from 104.2m, and 3.0m @  8.85 Au, 374.5 Ag from 131.9m(incl 2.4m @ 12.65 Au, 520.6 Ag)

 

 

NIU

 

 

EDD006

 

 

 462500

 

 

9186150

 

 

2094.5

 

 

28.0

 

 

33.7

 

 

-70

 

 

202.70

 

 

4/11/10

1.0m @ 1.30 Au, 64.9 Ag from 12.2m, and 1.0m @ 3.09 Au, 7.6 Ag from 52.2m, and 1.6m @ 1.57 Au, 447.0 Ag from 138.1m, and 4.8m @ 1.40 Au, 3.3 Ag from 197.0m

(incl 1.0m @ 4.64 Au, 5.4 Ag from 200.8m)

 

 

NIU

 

 

EDD007

 

 

 462416

 

 

9186169

 

 

2115.7

 

 

19.0

 

 

24.7

 

 

-55

 

 

150.50

 

 

15/11/10

2.0m @ 2.02 Au, 23.6 Ag from 96.0m, and 4.0m @ 4.88Au, 194.1 Ag from 100.0m, and 1.0m @ 1.15Au, 4.4 Ag from 107.6m, and 3.7m @ 2.29 Au, 5.18 Ag from 126.5m

(incl. 1.0m @ 5.48 g/t Au, 12.2 Ag)

 

 

NIU

EDD008

 462415

9186169

2115.7

25.0

30.7

-70

2.20

17/11/10

NSI - Hole Abandoned

NIU

EDD009

 462253

9186205

2167.4

12.0

17.7

-45

168.40

 

26/11/10

7.5m @ 3.20 Au, 91.6 Ag from 90.9m

(incl. 2.0 @ 5.71 Au, 148.7 Ag)

NIU

 

EDD010

 

 462253

 

9186205

 

2167.6

 

14.0

 

19.7

 

-70

 

160.60

 

 

11/12/10

16.5m @ 0.34Au, 33.8 Ag from 92.1m (incl. 1.0m @ 2.16 Au, 86.0 Ag), and  5.0m @ 8.46 Au, 30.6 Ag from 137.6m(incl, 1.0m @ 37.0 Au, 61.7 Ag)

 

NIU

EDD011

 462253

9186205

2167.4

14.0

19.7

-70

153.90

 

18/01/11

6.2m @ 3.01 Au, 284.0 Ag from 147.4m

(incl. 1.0m @ 10.90 Au, 561 Ag)

NIU

 

EDD012

 

 462979

 

9185930

 

2147.2

 

264.0

 

269.7

 

-50

 

210.00

 

9/02/11

30.0m @ 0.52g/t Au, 3.9 Ag from 146.9m

(incl. 10.0m @ 0.71 Au, 5.3 Ag, and 1.0m @ 3.61 Au,

1.9 Ag)

 

NIU

EDD013

 462981

9185930

2147.5

265.0

270.7

-80

189.10

20/02/11

NSI

NIU

EDD014

 

 462221

9186950

2046.9

225.3

231

-60

90.7

13/05/13

21.0m @ 1.18Au, 72.0 Ag from 63.0m

NIU

EDD015

 462762

9185951

2057.5

27.3

33

-60

312.6

25/04/13

62.0m @ 0.28 Au, 1.7 Ag from 199.0m

NIU

EDD016

 462222

9186950

2046.9

221.3

227

-60

314.3

29/05/13

20.0m @ 1.4 Au, 17 Ag from 62.0m

NIU

 

In 2012 to early 2013 Mincor PNG Limited managed exploration in the Edie Creek Tenements under a Joint Venture agreement with Niuminco Ltd.  Detailed geological and geochemical appraisal along with a 12 hole drilling program, totaling 2615.1m, was completed in February 2013 (See Table 3).  

 

Table 3: Mincor – Niuminco Joint Venture Drilling Summary

 

 

Hole_ID

 

mE

 

mN

 

RL

AZM

Mag

AZM TN

 

DIP

Max_ Depth

Date_ Completed

 

Comments/Results

 

Co.

 

EMD001

 

462585

 

9186027

 

2074.2

 

12.3

 

18

 

-63

 

240.30

 

20/08/12

1.7m @ 1.14 Au, 15.4 Ag from 40.3m

0.9m @ 1.81 Au, 6.1 Ag from 105.4m

 

MCR

 

EMD002

 

462672

 

9186026

 

2065.7

 

30.3

 

36

 

-80

 

211.00

 

27/08/12

3.0m @ 1.81 Au, 41.9 Ag from 13.0m

1.0m @ 3.0 Au, 10.5 Ag from 18.0m                 

1.0m @ 0.74 Au, 1.0 Ag from 92.0m

 

MCR

 

EMD003

 

462562

 

9185998

 

2072.0

 

5.3

 

11

 

-69

 

250.00

 

15/09/12

 

NSI

 

MCR

 

EMD004

 

462490

 

9186150

 

2095.0

 

80.3

 

86

 

-85

 

263.40

 

14/09/12

1.0m @ 1.35Au, 20.2 Ag from 25.0m

1.0m @ 1.72 Au, 9.3 Ag from 114.0m

 

MCR

EMD005

462490

9186152

2095.0

95.3

101

-85

32.60

16/09/12

NSI - hole abandoned

MCR

 

 

EMD006

 

 

463272

 

 

9185410

 

 

2177.7

 

 

255.3

 

 

261

 

 

-60

 

 

200.00

 

 

29/09/12

1.0m @ 0.96 Au, 450.0 Ag from 67.0m

1.0m @ 1.03 Au, 0.4 Ag from 124.0m

0.4m @ 6.93 Au, 45.4 Agfrom 154.1m  0.6m @ 3.82 Au, 42.7 Ag from 186.4m

 

 

MCR

 

EMD007

 

463300

 

9185410

 

2181.0

 

255.3

 

261

 

-84

 

179.40

 

18/10/12

0.6m @ 1.25 Au, 207.0 Ag from 89.4m,

1.0m @ 1.33 Au, 272.0 Ag from 102.6m 0.1m @ 3.55 Au, 8.2 Ag from 128.5m

 

MCR

 

EMD008

 

462744

 

9185986

 

2056.0

 

36.3

 

42

 

-60

 

150.10

 

4/12/12

 

0.4m @ 16.90 Au, 25.1 Ag from 94.6m

 

MCR

 

 

 

EMD009

 

 

 

462306

 

 

 

9186020

 

 

 

2176.7

 

 

 

20.3

 

 

 

26

 

 

 

-57

 

 

 

406.00

 

 

 

22/12/12

0.9m @ 1.27 Au, and 106.0 Ag from 65.0m 2.8m @ 1.87 Au, 37.3 Ag from 108.25m

2.1m @ 2.58 Au, 18.4 Ag from 137.0m,

2.0m @ 1.1 Au, 2.7 Ag from 153.0m,

2.0m @ 2.43 Au and 0.5 Ag from 209m, 0.7m @ 0.55 Au and 4.4 Ag from 345.4m

 

 

 

MCR

 

EMD010

 

462163

 

9186167

 

2150.3

 

47.3

 

53

 

-60

 

259.00

 

25/01/13

1.0m @ 7.89 Au and 26.3 Ag from 163m, 0.4m @ 0.05 Au and 4.0 Ag from 228.4m

 

MCR

 

EMD011

 

462312

 

9186992

 

2101.0

 

190.3

 

196

 

-59

 

268.10

 

07/02/13

0.5m @ 1.07 Au and 3.0 Ag from 106.6m,

0.7m @ 3.32 Au and 5.7 Ag from 179.9

 

MCR

 

EMD012

 

463208

 

918787

 

2169.0

 

259.3

 

265

 

-60

 

291.20

 

22/02/13

 

0.6m @ 25.2 Au and 34.6 Ag from 244m

 

MCR

 

 

CURRENT DRILLING PROGRAM

 

Karuka – Enterprise Stockwork and Edie Creek Diatreme were defined as potential bulk tonnage targets. Both areas had some uncertainty about the robustness of the geochemical and geological models, so a carefully staged drilling program was proposed using a rig that was already on site, and choosing sites requiring a minimum of site and access preparation.

 

Karuka- Enterprise Stockwork has a strong gold anomaly defined by 1366 continuous chip samples of weathered rock outcrop in trenches which averaged 0.53g/t. The uncertainty was whether this strong gold response is due to supergene enrichment which may decrease at depth, or alternatively represent a surface leached zone from which grade increases with depth to the base of oxidation, as suggested by the district-wide assessment of Lowenstein (1982).

 

The uncertainty about the Edie Creek Diatreme was whether the exposed small diatreme bodies link at depth to form a larger diatreme system, or alternatively are a series of discrete small bodies linked to shallow NE-dipping detachment faults. The latter may limit the potential tonnage.

 

Karuka – Enterprise Stockwork

 

An initial test of the Karuka- Enterprise Stockwork used the Traverse Drilling “Romeo” rig on site from a currently assessable point on the Enterprise access road. Parameters for EDD014 were: PQ/HQ coring, coordinates 462,221E / 9,186,950N, azimuth 231°TN, inclination -60°, depth 90.7m (See Table 1). This was intended to traverse the main Karuka Stockwork, but was abandoned due to penetration difficulties at 90.7m after passing through a 2m refilled cavity in the Karuka underground workings (Figure 2).

 

An additional hole EDD016 was drilled from the same site at a slightly different azimuth. Parameters for EDD016 were: PQ/HQ coring, coordinates 462,222E / 9,186,950N, azimuth 227°TN, inclination

 -60°, depth 314.3m. This was intended to traverse the main Karuka Stockwork and was terminated at 314.3m after failing to intersect any significant stockwork zone.

 

Both EDD 014 and EDD 016 intersected stockworks of gossanous quartz veinlets in the 20m zone overlying the Karuka underground workings. EDD 014 averaged 1.18g/t Au, and 72g/t Ag in the 21m interval from 63m to 84m. EDD 016 averaged 1.40g/t Au, and 17g/t Ag in the 20m interval from 62m to 82m.

 

Figure 2: Enterprise – Karuka stockwork zone. Green outline is boundary of the trench sampling used to calculate an average grade of 0.53g/t for 1366 samples. The fawn coloured central lobe is the area of maar lake fill sediments interfingering with diatreme breccia to the south (orange). DDHs 014 and 016 (black) cross-cut the SE projection of the highly anomalous Karuka Stockwork where a sidecut track face 50m northwest of the proposed drill section produced a cumulative 70m @ 1.04g/t. The site was chosen for ease of access and a good first test of the bulk tonnage concept.

 

 

Edie Creek Diatreme

 

The first hole test of the Edie Creek Diatreme was EDD015 with parameters: PQ/HQ coring, coordinates 462,762E / 9,185,951N, azimuth 033°TN, inclination -60°, depth 312.6m. This penetrated directly beneath anomalously high gold chip samples on the Alpha South benches (Figure 3).

 

The interval 1 to 40m in EDD 015 comprises high level diatreme or maar breccia, which was not evident in surface exposure, while further down the hole diatreme root breccias were intersected. This prompted speculation as to the potential for other such systems hidden beneath transported overburden within the Upper Edie Creek Valley. The maar breccias in EDD015 are similar to those exposed 200m upstream in Edie Creek and near the plant site, which suggests that these maar sediments may be more extensive than currently established.

 

The focus on potential bulk tonnage exploration targets, reinforced somewhat by the intersection of diatreme breccias in drillhole EDD 015, has prompted an interest in the topography of the Upper Edie Creek Valley.

 

In EDD 015 veining and brecciation dip at between 70 and 50 degrees to the southwest, in a similar attitude to the main Edie Lode system. A stockwork of  low sulphidation partly brecciated and rehealed quartz – carbonate veining extends from 199.0m to 260.6m with massive vein (~100%)  in the section 210.6m to 223.0m, then 20% vein from 223.0m to 231.0m and another massive vein from 260.1m to 260.6m. An intercept of 62m from 199m to 261m averaged 0.28g/t Au, 1.7g/t Ag and this is the widest section of massive vein and vein stockwork intersected to date.

 

A summary of EDD015 is as follows:

 

96 – 97m         Diatreme breccia         1m       1.78g/t Au

98 – 99m         Brecciated porphyry    1m       1.17g/t Au

199 – 210m     Vein stockwork           11m      0.18g/t Au

210 – 223m     Massive vein               13m      0.26g/t Au

223 – 231m     Vein (20%)                  8m       0.17g/t Au

231 – 260m     Vein stockwork            29m     0.36g/t Au

260 – 261m     Massive vein                1m       0.28g/t Au

 

The low gold tenor of this impressive vein and stockwork zone remains unexplained but is likely to be due to pronounced grade variability as is common in such veins.

Figure 3: Outline in green of Edie Diatreme with 4 diatreme breccia “fingers”, continuous chip trenchand bench samples & proposed drillhole EDD015.

 

 

STAGE 2 DRILL PROGRAM PROPOSAL

 

Further drilling of the Edie Creek Diatreme should be deferred and an Induced Polarisation survey completed over the entire diatreme area. IP Chargeability is expected to define zones of maximum sulphides, while IP resistivity may highlight zones of strong silica alteration beneath the extensive talus cover of the valley.

 

Stage 2 program for Karuka – Enterprise Stockwork is proposed to intersect the main defined veins and stockworks and zones of anomalously high gold in continuous chip samples. A 10 hole program for 2000m of drilling is envisaged assuming that an RC rig is available (Figure 4). If core drilling is required then some of the hole depth parameters may require variation.

 

 Figure 4: Karuka Enterprise Stockwork with Stage 2 drillhole locations EDD017 to EDD026