Annual report on EL 4177 Mount Ellison year ending 22-3-1989

Abstract

This report covers the 1988 exploration program completed by Dominion Mining Ltd on the two blocks of EL 4177 known as Mt Ellison.

Dominion has completed a program of soil sampling, RAB drilling, costeaning mapping and sampling, through the licence.

Three anomalous zones of mineralization were delineated within the EL; (i) a linear zone of mineralization along a low pisolitic ridge on the eastern boundary of the licence, (ii) a quartz reef/stockwork zone on the main Woolwonga antcline, and (iii) a massive quartz reef located in the Gerowie Tuff formation in the northeast corner of the licence. An application for a Mining Lease to cover all of the area of the two blocks comprising EL 4177 and adjacent Woolwonga North MCN's 2127-2144 was lodged on the 25th January 1989. Exploration activity proposed by Dominion in 1989 upon approval of MLA 1075 will include an aeromagnetic survey, extensive soil sampling, RAB drilling and scout RCP drilling to evaluate anomalies previously generated during 1988 and/or during the proposed 1989 program. Previous exploration programs within EL 4177 have been orientated towards both base-metal and gold mineralisation. The Mount Ellison copper mine, located 2km north of Ban Ban Homestead, was worked during the period 1891 to 1911. Past production totalled 3250 tons of copper ore, averaging 20% Cu, and 3 tons of Bi (Walpole et al, 1968). Geopeko evaluated the licence during the period 1966 - 69 and 1975 - 79 using aeromagnetic anomalies. CRA Exploration completed a program of geological mapping, rock chip sampling and soil sampling with follow-up drilling on the Olive prospect, located 3km northeast of Ban Ban Homestead. AAR Limited (1980-81) conducted a uranium exploration program using gridding, radiometric sampling and geological mapping. Geopeko (1983) completed a stream sediment survey over EL 4177 to assess for Au potential. Results indicated no signficant Au anomalies (Radford et al, 1983). CSR Ltd (1985, 1986) designed a program to define sulphide associated gold lodes in the Zamu Dolerite. A series of soil sampling lines, ground magnetic surveys and geological mapping defined anomalous arsenic haloes around possible Au mineralisation. Anomalies were encountered in three settings:

(1) within Zamu Dolerite,

(2) near contact with Zamu Dolerite, and

(3) with carbonaceous pelites of the Koolpin Formation.

Top priority was given to the anomalous zone located 1km north of the Ban Ban Homestead, locally named the Ban Ban propsect. The host rock for the Ban Ban prospect is altered, sulphide rich Zamu Dolerite in the nose of a broad anticline (Hamilton, 1986). Airborne and ground magnetic surveys indicated a zone of increased magnetic relief which was interpreted as a narrow sediment band in the dolerite. Composite soil sampling over the Ban Ban grid at 40m sample intervals defined a zone of anomalous gold. Re-sampling of composite samples by rock chip over lOm intervals gave no repetition of the original results. Costeaning within the Ban Ban prospect to assess anomalous results was implemented by CSR. Geological interpretation of the host rock was an intensely altered dolerite that has undergone silicification and carbonatization. Assay results from one trench gave 24m @ 0.31 ppm Au, where the gold is associated with a weak stockwork of quartz veining. Compilation of all results by CSR Ltd, indicated a zone of anomalous mineralization, BOOm long x 320m width, which was open to the west. Following further evaluation of results during 1987, CSR withdrew from the joint venture agreement, relating to EL 4177, and management reverted to Dominion. The soil sampling program for EL 4177 was conducted in two stages: (i) an extension of the grid sampling program over the adjacent Woolwonga North mineral claims; and (ii) a separate phase within the southern block of EL 4177. All samples collected were sieved to a minus 20 mesh fraction and sent to Analabs Darwin for low detection, carbon rod AAS analysis for gold. Arsenic analysis was also completed by AAS methods. Grid soil sampling sites (on 25 metre stations) were located on 100 metre grid lines between 14100N and 14700N. A total of 55 samples (1.375 line kilometres) were collected. All sample locations and assay results are shown on Plates 3 and 4. Nineteen rock chip samples were also collected during this stage of the program. Results are shown on Plates 3 and 4. Three lines, totaling 3.85 line kilometres, were sampled across the southern block of EL 4177. Sample lines were 300 metres apart, with sample sites located every 50 metres. A total of 77 samples were collected and analysed for Au and As. A rock chip scree sampling line (25 metre intervals) over a quartz reef-stockwork zone collected nine samples. Outcrop rock chip sampling throughout EL 4177 collected another 28 samples. Continuation of the pipeline quartz grab sampling through EL 4177 totaled 41 samples. Between 23 June 1988 and 29 July 1988 a total of 87 holes for 1728 metres were drilled. Drilling formed part of a larger RAE program extending into the adjacent tenements to the southeast. Both sides of the gas pipeline easement were drilled. Drill holes on the west side of the pipeline were angled at 60 to grid east and drilled to a depth of 20 metres. On the east side, drill holes were angled to the west at 60 and drilled to 20 metres. The sample interval was two metres with the first sample comprising colluvium/alluvium being collected separately. Subsequently six metre composite samples were collected unless there was significant quartz or evidence of mineralization in which case two metre samples were taken. When results were received a resample was taken as necessary. Two costeans were completed totalling 414 metres. They were dug 150 metres apart and formed part of a larger costean program extending into the adjacent Woolwonga North property. The costeans were positioned to intersect a grid north-south trending gold and arsenic anomaly over a low pisolitic ridge located by both RAB drilling and -20# soil sampling. Continuous channel samples of bedrock were collected over each metre. In areas of hard and/or poor bedrock exposure two or five metre continuous channel samples were collected. All samples were assayed for gold (AAS) and arsenic by Analabs Darwin. Results over the Woolwonga North/Mt Ellison grid sampling program indicates a linear zone of anomalous mineralization that straddles the boundary between the two properties. Rock chip assay results within the grid area returned no anomalous assay results. Soil sampling within the southern block of EL 4177 returned no significant results. Scree sampling across the quartz reef/stockwork zone returned one significant result of 0.78 ppm Au (Sample No. 183330). Rock chip analysis within this zone also returned two further results of 1.94 ppm Au and 0.39 ppm Au (Sample No. 183385 and 183370 respectively). Rock chip sampling within the northern block of EL 4177 returned two anomalous results. Sample No. 183394 assayed 0.40 ppm Au from a quartz breccia/ferruginous mudstone outcrop while Sample No. 183400 assayed 0.53 ppm Au from a massive quartz reef outcrop with scorodite. No anomalous results were received from the pipeline quartz sampling program within EL 4177. All gold and arsenic assay results for RAB drilling are plotted on plates 6-8, with significant results summarized in the following Table 4. Only two results were >0.8 g/t Au (4m @ 0.90 g/t and 4m @ 5.79 g/t Au) but low grade assays >0.1 g/t Au delineates the linear zone of mineralization that straddles the eastern EL 4177 boundary and adjacent Woolwonga North MCN's 2127-2144.