Report on drilling at MLN 4 and MLN 206 at Fountain Head between October 1988 and February 1989

Abstract

Gold mineralisation on MLN 4 and MLN 206 at Fountain Head is present along 1200 metres of strike of a complex anticline affecting meta-greywackes, phyllites and tuffs assigned to the Early Proterozoic Burrell Creek Formation. Approximately 14000 metres of drilling has been completed since August 1987, and has defined a probable ore reserve of 770,000 tonnes averaging 3.0 grams per tonne Au in the Potters and Westhill Zones in the western half of the structure. This reserve is present in a strike length of 615 metres to a maximum depth of 85 metres. Additional resources of approximately 115,000 tonnes averaging 3.3 grams per tonne Au are indicated in the eastern half of the structure, but drilling to date is too wide-spaced to define reserves. In the Potters/Westhill Zone gold is associated with quartz-pyrite-arsenopyrite veining and sulphide disseminations which occur in vertical shears and fracture zones in the axial portion of the anticline, and in stratabound lodes favouring beds of greywacke on the fold limbs. The mineralisation is open at depth along the entire strike of the defined orebody, and to the west and east appears to pitch away to greater depths. There is good potential to significantly increase the ore reserve with additional drilling. The mineralisation shows a very wide range in grades, and a large part of the gold resource is contained in localised probably discontinuous high-grade pods. This presents sampling, assaying and possibly metallurgical problems which need to be addressed in the next work phase. A parallel anticlinal structure, on the same trend as the Glencoe orebody, occurs over a strike length of 1500 metres two kilometres north of Fountain Head in the north of MLN 4. This presents a significant exploration target which is completely untested. Recommendations are made for a programme comprising RC drilling, diamond drilling, induced polarisation surveys, RAB drilling of the Glencoe axis, metallurgical testwork and check assaying, with a total budget of $505,000. It is proposed to commence the work in early May with full reporting completed by mid August.