Annual report for the Fountainhead and Woolwonga Group of Tenements

Abstract

The Annual Report summarizes Australian Coal and Gold Holdings Limited's exploration and mining development of alluvial and bedrock gold deposits at Fountainhead and Woolwonga for the period from 1 July 1983 to 30 June 1984. During this period 93,676.62 was expended, mainly on the upkeep of facilities and equipment at Fountainhead. A geochemical sampling programme on the Fountainhead leases showed that there was no obvious, near surface, large tonnage - low grade gold deposit suitable for open cast mining. Some assays were encouraging (e.g. 34414, 4.40ppm over 10 metres; and 34403, 5.00ppm over 7 metres), but were related to narrow, discontinuous quartz veins. The wide gold zones did not have any significant strike extent. An agreement was entered into with Grant's Patch Mining Limited to mine the alluvial deposits in 1984-1985 at a projected rate of 500,000 cubic metres per annum. A separate agreement with Geopeko - Anaconda Australia Inc. allows for exploration of bedrock gold deposits at Fountainhead and Woolwonga during 1984-1985.