Flora Belle project MCN423.

Abstract

1) Evaluation of Previous Date and Site Visit - The reports of previous holders of the licence were examined and the old workings were examined during a site visit. 2) Evaluation of Grade and Tonnage of Dump Material - The old dumps were surveyed with chain and compass and a volume estimated. Samples were collected from cuts made with a front end loader in the dumps. 3) Preliminary Estimate of Capital and Operating Costs - A mining and process engineer was contracted to estimate the capital and operating costs of a 50,000 TPA flotation concentrator for the Flora Belle Silver/Lead deposit. 4) Gold Rock Chip Geochemistry - A rock chip sampling programme for gold mineralization was undertaken within the Flora Belle lease. EVALUATION OF PREVIOUS DATA - Reports by Geonorth, Northern Metals, United Uranium Central Pacific Minerals and V J McSweeney were read. The Flora Belle mine was visited and the workings inspected. Discussions were held with Mr J Doyle who was a member of the tributers (1980-81) who last worked the Flora Belle. It is not intended to report the information and conclusions of this report. However in summary the high grade silver lead and gold mineralization is restricted to a number of structurally controlled shutes from 1-1.5m wide within a 6-700m long shear zone, which is part of a major regional structure. Geoff Orridge estimated diluted ore from the mine might average 2%Zn, 5%Pb and 200g/t Ag, which on the data available appears to be a reasonable, conservative estimate. Between the shutes the lode is reduced to a series of thin quartz and limonite veinlets. From the description of workings, the ore shutes appear to be lenticular in both the horizontal and vertical sense. This means that exploration to define ore reserves would have to be intensive, and due to the high stripping ratio open pit mining would be practical to only a shallow depth.