Annual report 1991 Chinese Howley Project (MLNs 884-890, MLN 1000, MCN 1014 - MCN 1015, MCN 1231 - MCN 1232)

Abstract

During 1991 exploration work conducted at Chinese Howley included mapping and rock chip sampling of the newly defined Chinese No.4 prospect, costeaning in the Chinese South area, RC drilling at Chinese No.3, Chinese No.4 and Chinese South, and resource evaluation of the Chinese No.3 prospect. Chinese No.3 is now undergoing mine development. A new area of anomalism north of Chinese No.2 and No.3 was identified by rock chip sampling. The area, now referred to as Chinese No.4 was subjected to a scout RC drill program of seven holes (CH120-126) for 446m. Encouraging intercepts were encountered including 7m at 3.24 grams per tonne Au. Scout RC drilling in the Chinese South area comprising five holes (FL008-12) for 308m also produced encouraging results including 6m at 5.0 grams per tonne Au. Both areas will be subjected to further work during the forthcoming year. RC drilling at the Chinese No.3 prospect consisted of 46 holes (CH127 -172) for 2486m. This drilling substantially increased the resource by testing dip and strike extensions of known mineralisation. Final resource figures calculated were flitch resource - 448,004t at 2.50 grams per tonne, (2.40 grams per tonne). Resource figures tor Chinese No.1 and No.2 remained unchanged during 1991. The total combined flitch resource for Chinese Howley now stands at 821,877t at 3.54 grams per tonne, (2.77 grams per tonne). Based on the resource data for the No.3 deposit, a preliminary pit optimisation study was completed and a Mining Reserve calculated. Mining of the No.3 ore body was commenced by Dominion's Cosmo Operations in late January 1992.