2012 Montfall Annual Report for Mt Tymn.

Abstract

In 2012, it was decided to take 80 x 2.0kg samples at 20 m intervals, of the scree material over the length of the visible resource, about 1,5-600m, to define the optimum sizing for gold release and the gravity recoverable Au, and the cyanide recoverable Au. We have been waiting for AMDEL Perth to provide the optimum sizing for gold release to finalise the application to commence mining at Mt Tymn, now be available. This report validates the initial assessments made in the bulk testing gravity recovery results. From past reports from, White Industries-Biltong-Pacific Gold and Werrie Gold, Sydney Barrister Mr Victor Wan, commissioned Dr Richard Haren to review all past data, inspect and sample Mt Tymn. We have not been able to successfully determine similar values for the surface scree/alluvial, by 'minor' sampling. Our sampling indicates approx 40,000tons 4.0 grams/ton of immediate scree, to 160,000 0.5 grams for down slope alluvial, we hope there is approximately 200,000 tons at 1.5 grams plus, covering what may be the hard rock resource, that may pay for the Plant, infrastructure, establishment, mining and processing of the scree-alluvial. We intend to mill to 200 microns and can mitigate recovery losses, by treating gravity concentrate via an ACACIA (enclosed cyanide recovery plant), to recover 100 percent of au within the concentrate. Dr Haren stated that he was not certain that past drilling had even targeted the ore resource? Our Goal and benefit here is the exposing the complex 'Stringers' structure between veins of the deposit, to enable further evaluation, proposed by a bulk testing of 500 ton costean samples, with the plant on site, that we believe will provide a 'definitive' result that we can rely on rather than a very risky $0.7m to $1.5m expenditure on 300 to 400 drill holes, that still may be indecisive. Burrell crk formations are notoriously difficult to read and can take several drilling passes to prove up, or fail, whereas the bulk testing is simply the most accurate method and may give us the confidence to proceed to continue mining and milling the hard rock resources and further consider a much larger resource of potentially millions of tons of economically viable heap leach recovery.