Annual report Fountain Head Woolwonga Group 07/1982 to 06/1983.

Abstract

The Annual Report summarizes Australian Coal & Gold Holdings Ltd's exploration and mining development of alluvial and bedrock gold deposits at Fountainhead and Woolwonga for the period from 01/07/1982 to 30/06/1983. During this period $217,875.38 was expended at Fountainhead on construction of camp/workshop facilities, a 12 tonne per hour pilot plant, water supply, and return water/tailings dams. Three separate bulk sampling programmes were completed to evaluate the volume and grade of the alluvial deposits. The reserves and resources of alluvial gold are now stated as Fountainhead - Indicated Reserves 100,000 m3 @ 0.66 grams per m3, Potential Reserves 360,000 m3 @ 0.3-0.7 grams per m3. WOOLWONGA: Potential Reserves 305,000 m3 @ 0.1-0.7 grams per m3. Gold content of alluvials outside of the Chinese workings has not been evaluated, and an additional resource may be present in these areas. Bedrock gold exploration, which included surface geological mapping and diamond drilling was carried out along the old workings on the Fountainhead hill. Past gold mining was concentrated on small (ca. 250-1000 tonne), plunging lodes localized along a major anticlinal fold axis. Two diamond drill holes, (FH -1,210m ; and FM-2,150m) tested the continuity of the lodes on the northeastern limb of the anticline with disappointing results. Only narrow intervals of low-grade gold mineralization (FM-1, 48.05 - 48.15m @ 5.1 ppm ; FH-1, 49.0-50.0rn @ 0.72 ppm ; and FM-2, 123.1-124.1m @ 0.75 ppm) were intersected, and in all cases, the mineralization could be related to thin, transgressive quartz-chlorite-pyrite-arsenopyrite veins. The surface geological mapping indicated that the most promising exploration areas were near the anticlinal axis, both down-plunge from the known auriferous quartz lodes and in non-outcrop areas. Evaluation of the alluvial and bedrock gold deposits at Fountainhead and Woolwonga will continue in 1983/1984.