Annual Report EL 28045 Southern Cross Bore Project, 30 November 2012 to 29 November 2013

Abstract

During the past year exploration undertaken on the project area included an RC drilling program, a soil sampling program, rock sampling, a second drilling program including both RC and diamond drilling and a heliborne geophysical survey. The first drilling program targeted the down dip-plunge gold-copper mineralisation at Johnnies Reward identified by Alcoa in 1984. This program consisted of 9 RC drill holes for a total of 1641 meters drilled. A total of 172 composite samples and 801 single meter samples were submitted with all samples analysed for gold and most samples analysed for copper. The soil sampling program consisted of 8.25kms of infill and extension lines over the Black Angus and Wagyu prospects. A further 9.3 kms of regional soil sampling lines were completed to test areas to the north and east of the Black Angus and Wagyu prospects including a single 300m line done to test for anomalous mineralisation along the Woolanga Lineament. A total of 184 infill and extension soil samples and 64 regional soil samples for a total of 248 soil samples were analysed for gold, silver, arsenic, bismuth, copper, lead and zinc. In conjunction with the soil sampling program a total of 13 rock samples were collected and analysed for gold, silver, arsenic, bismuth, copper, lead and zinc. The second drilling program utilised both RC and NQ sized diamond drilling and was conducted at the Johnnies Reward, Black Angus and Brahman prospects. A total of 22 RC holes and 3 RC pre-collars were drilled for a total of 1751m. Four NQ sized diamond tails were completed for a total of 336.5m. A total of 448 RC composite samples, 172 RC single metre follow-up samples, 215 half core and 11 core fillets were submitted for analysis of gold, silver, arsenic, bismuth, copper, lead and zinc. An airborne geophysical survey including VTEM and magnetics was completed over much of the Southern Cross Bore Project area. The results of the two drilling programs reconfirmed the presence of a zone of high grade gold mineralisation located within a stratiform envelope of lower grade gold-copper mineralisation at Johnnies Reward. A number of significant intersections were made however drill hole 13JRRCD036, the drill hole farthest down dip, only intersected low grade mineralisation. It is thought that the hole had drilled above the high grade gold mineralised ore shoot or that this ore shoot may have been stoped out by a granitic intrusive. Drilling at Black Angus intersected a broad, base metal (copper-lead-zinc) anomaly in a deeply weathered quartz sericite unit. Drill hole 13BARCD038 which targeted the shear zone at depth intersected the weathered part of the shear zone failing to intersect mineralisation in the primary zone. At 166m this hole collapsed and had to be abandoned at 168m. Drilling completed at Brahman encountered minor very weak mineralisation similar in style to that at Johnnies Reward. Soil sampling assisted in better defining a multi-element geochemical anomaly which is over 4kms in strike length running northwest to southeast from Black Angus through Wagyu to southeast of Johnnies Reward. Regional soil sampling identified the presence of widespread copper soil geochemical anomalism to the north and east of the Black Angus, Wagyu and Johnnies Reward prospects. Of the 13 rock samples collected during the soil sampling program four contained weak gold mineralisation. The EM survey conducted over the area identified three conductive anomalies. One is a highly localised anomaly centred over the Johnnies Reward Prospect. Recommendations for future exploration at the Southern Cross Bore Project include a down hole EM survey, interpretation and modelling of the VTEM and magnetic geophysical data to produce drilling targets and a follow-up drilling program.