Report on Results of Trenching at The Zapopan Mine, Brocks Creek

Abstract

Ten trenches totalling 1184m in length were cut to basement near the old Zapopan Mine. These intersected sequences of siltstone, shale, metachert, tuff and greywacke which establish that the Zapopan mineralisation is situated within the upper portion of the Gerowie Tuff (Lower Proterozoic South Alligator Group). Bedding measurements and detail mapping clearly establish the location of a major anticline passing through the centre of the old underground workings, and this fact in combination with knowledge of the local stratigraphy, has allowed delineation of five hard-rock target areas around the old mine. These deserve extensive further investigation. Resource potentials within these targets are estimated to range from 30,000-50,000 tonnes at +15g/t Au for deeper (targets to 250,000-500,000 tonnes at 2-3g/t Au for near-surface targets. About 3500m of diamond and percussion drilling is suggested to investigate the targets in the first instance. The trenching also revealed an extensive sheet of alluvial/eluvial gravel overlying the basement in the mine area. Bulk sampling is warranted in view of positive gold returns from limited panning conducted to date. A potential alluvial resource of 250,000-500,000m3 has been outlined by the trenching and reconnaissance mapping. Conclusions;

1. The mineralisation at Zapopan occurs in a siltstone-shale- chert-tuff sequence near the top of the Gerowie Tuff whereas the mineralisation at Faded Lily occurs in the overlying Mount Bonnie Formation.

2. The Mount Bonnie Formation passes through trenches cut just to the south-west of the Zapopan mineralisation and through the end of a railway cutting 1km to the northwest.

3. The Zapopan lodes occur on the crest and adjacent limbs of a major east-south-east plunging (40) anticline. (the Zapopan Anticline)

4. Gold mineralisation occurs in both vein-quartz reefs (+ lm thick) and pyritic, laminated inetachert beds (up to 0.5m thick over the hinge-area of the anticline).

5. Both shallow and deep ore targets still exist at Zapopan. The resource potential of individual targets ranges from

30,000-50,000 tonnes at +15g/t Au (deep) to 250,000-500,000 tonnes at 2-3g/t Au (shallow).

6. Extensive drilling of the targets is justified while a high gold-price prevails.

7. An alluvial gold target of 250,000-500,000 m3 is present around and downstream from the old hard-rock workings at Zapopan.