Annual report 1987 and 1988 MLN 13

Abstract

The emphasis on exploration within the Mining Lease continued during the year with drilling in the southern part of the Enterprise pit, on the Czarina Anticline and Kohinoor Anticline. Five diamond drill holes totalling 727.2m were drilled within the pit area of the Enterprise Anticline in order to assess the ore bearing sulphiditic quartz veins on the eastern side of the anticlinal axis. In situ reserves as of June 1988 were estimated at 9.5 M tonnes averaging 2.7 grams per tonne Au, and mineable reserves were estimated at 7.4 M tonnes averaging 2.8 grams per tonne Au. Mining during January 1987 and june 1988 has removed 1.8 Mt at 2.3 grams per tonne Au. The Czarina anticline was drilled by 2 diamond drill holes to test the tenor of mineralisation within the Nodular Chert unit which hosts high grade gold values at Enterprise. an exceptionally good result was obtained which gave an average grade of 3.54 grams per tonne Au. At the Kohinoor anticline a programme of 9 diamond drill holes was carried out for the purpose of resolving structural complexities and erecting an informal stratigraphy for the area. results have been sufficiently encouraging to permit planning for detailed structural mapping and further drilling. The only area subject to exploration in the Southern mining Lease has been the cox's prospect. Three diamond drill holes were drilled intersecting mineralisation associated with steep dipping shears and with cross cutting quartz veining. A significant interval of 8.02 g/t au was obtained.