Annual mine based exploration report for Union Reefs Gold Mine MLN 1109 for the year ending 31 December 1998

Abstract

The mine based exploration conducted consisted of drilling of prospects to define additional ore and also sterilisation drilling. The work completed at Union South consisted of fourteen holes drilled along a 320m strike. Results were poor, with narrow low grade intercepts made. At Crosscourse, five hole were drilled to target the E-Lens at depth. Excellent results were obtained, confirming the continuity of the mineralisation, ie. 56m at 2.41 g-t Au, 46m at 3.34 g-t Au. At Alice Hills, additional infill drilling was completed to convert the resource from inferred to indicated category. The drilling confirmed the existence of four main lodes comprised of massive to sheeted quartz veins that are bedding-cleavage parallel. The lodes vary in thickness but strike N-S with a northerly plunge of 45 degrees and can have variable amounts of arsenopyrite, pyrite, sphalerite and galena. There are some narrow high grade shoots, ie. greater than 100 g-t Au. The Dam 'A' prospect was evaluated by 46 holes to test the continuity of the Alice Hills mineralisation. Three strongly mineralised lodes were confirmed, 5 to 10 meters wide with mineralisation bedding parallel. Dominant lithologies encountered were greywacke with abundant thinly interbedded carbonaceous shales. The Alta prospect lies north of the Union North pit and the drilling completed has indicated the continuation of the shallow mineralisation to 8900N with lodes apparently pinching and swelling, hence the irregular values along strike. The Orinoco prospect lies north of the Alta prospect and the continuity of mineralisation has been confirmed although the vein density appears to be considerably higher at this locality. Sterilisation drilling was successfully completed at the Tailings Dam and North Waste Dump.