Report on diamond drilling at Golden Dyke July-Oct 1987 for MLN 798 and MLN 866

Abstract

A programme of 12 pre-collared diamond drillholes, totalling 626 metres, was completed at Golden Dyke between July and October 1987. This work had two objectives, firstly to define a near surface gold resource on Langleys Claim, between 200m and 600m southeast of Henry & Walkers open pit, and secondly to test for deep extensions of the main orebody in Forscutts claim immediately southeast of the open pit. On Langleys ground drilling and resampling of old trenches indicated a resource of

175,000 tonnes, averaging 3.05 g/t gold, from surface to a maximum depth of 62 metres below the outcrop. The mineralisation extends along a strike length of 350 metres, has an average horizontal width of 4.35 metres, and dips southwest between 620 and 800, forming a simple continuous tabular body. Significant oxidation extends to a maximum depth of 33 metres and, above this level, is a more or less oxidised resource of 114,000 tonnes averaging 3.22 g/t gold. To upgrade the resource to the category of a proven reserve would require infill drilling on 15 metre spaced cross sections at a cost of between $30,000 and $50,000 depending on the depth limit of drilling. The best drilling result in Langleys Lease was in KD12 which intersected 8 metres 4.44 g/t gold in sulphides between 37.8 to 45.8 metres. Three pre-collared diamond drillholes are recommended to test the lode at the 80 metre level below KD12 at an estimated cost of $55,000. Drilling in Forscutts ground demonstrated that there is no significant body of high grade ore above 100 metres on the extensions of the main oreshoot southeast of Henry & Walkers pit.