Woolwonga Project EL 31306 Annual Report for the period 29 December 2016 to 28 December 2017

Abstract

Woolwonga was a significant producing mine in the mid-1990's. Prior to the application and granting of EL 31306 most of the area was held under MLN 1103. MLN 1103 was granted to Dominion on February 26th 1991 and expired on February 25 2016. The Woolwonga gold mine was actively worked between 1889 and 1900 with a recorded production of 205kg (6,604 oz.) of gold from 7,457t of ore. The mine was abandoned in 1901 owing to the lower recoveries and grades met in the primary mineralization, and water inflow into the deeper levels. From 1907-1908 a further 26kg (833oz) of gold was recovered from cyaniding 4,600t of tailings. From 1970 to 1982 the property was evaluated by several companies for both bedrock and alluvial gold potential. In 1982 Australian Coal and Gold Holdings Ltd commenced a mapping and bulk sampling program of the alluvial deposits. The investigation indicated a potential near surface alluvial/eluvial reserve of 305,000 cubic metres in the range 0.1 to 0.7g Au per cubic metre. In 1984 the Golden Dyke Joint Venture comprising Geopeko and Anaconda optioned the property from AG and C and commenced mapping, costeaning and diamond drilling. In 1985 Dominion Mining Limited replaced Anaconda as manager of the JV and commenced diamond drilling to evaluate the open pit resource potential. The combined drilling data indicated a resource of 500,000t at 3.0g Au/t. Further mapping and costeaning in 1986 and 1987 indicated a potential to increase the tonnage significantly and during 1987 two major reverse circulation percussion drilling programs were completed. This delineated an in situ geological resource of 2.48Mt grading 2.48g Au/t, comprising an oxide component of 737,000t at 2.98g Au/t and 1,741,000t of sulphide mineralization at 3.5g Au/t. A feasibility study indicated a recoverable mining reserve of 2.1Mt at 2.78g Au/t. In 1989 further RC drilling indicated a global resource of 5Mt at 3.0g Au/t. During the 1989 field season work at Woolwonga was orientated towards pre-development activities with RAB drill sterilization and groundwater investigations being completed. Exploration over MLN 1103 was limited to core drilling for geotechnical information, metallurgical samples and assay verification of previously drilled RC percussion holes to enable a final pit design to be completed (Dominion, 1989). The drilling results obtained by Dominion Gold Exploration Pty. Ltd. indicated that large tonnage deposits were restricted to the Woolwonga Anticline, but smaller ore bodies occur on the Central and Western Ridges (Dominion, 1989). Dominion mined the Woolwonga Deposit in the mid to late 1990's. Ore was trucked to the Cosmo Howley plant for processing. Production details for this period are incomplete. Grade Control drilling and the surveyed as-mined pit were recovered by Bacchus. This information has been forwarded to NTGS so it can be recorded for posterity. The deposit was mined as two pits, Reward in the north-west and Wilson to the south-east. Mineralised waste from the Reward pit was tipped into the Wilson pit. This mineralised waste is partially under the water line during the wet season and is exposed in the dry season creating a significant volume of AMD, mostly contained within the pit bounds. Dominion rehabilitated the site in 1990's, however there is no detailed information as to the methods used and closure principles. Northern Gold NL through Territory Goldfields NL acquired the tenements in May 1995 on the completion of Dominion's mining phase. Prior to formation of the Burnside JV, work manly comprised data reviews. In April 2002 Territory Goldfields NL entered into a joint venture (Burnside JV) with Buffalo Creek Mines P/L. In 2002-2003 the Burnside Joint Venture conducted a ranking study and a structural and resource review. The deposit was ranked as medium priority and its potential to host additional economic gold mineralization was acknowledged. A computerized study (Leapfrog Software) of gold distributions drew attention to south plunging bodies of higher grade that could form a focus for future exploration. It was concluded that there was scope for residual mineable tonnes at the project but the rehabilitation and pit backfilling had made a new evaluation more difficult and expensive. In 2003-2004 the JV carried out a program of exploratory RC drilling on the Empire target, SE of the main workings. The program comprised 6 holes for 420m (SET-001 to SET-006). SET-004 was the most successful hole, including 10m at 6.97g/t Au from 73m. This hole was well (grid) east of the notional target. In 2004-2005 the JV carried out a program of vertical RAB drilling along the SE strike extension of the Woolwonga Anticline. The RAB drilling comprised 30 holes for 568m on MLN 1103. The results were disappointing, with a maximum 1m gold value of 0.16g/t Au at 20-21m in hole SWB-009. MLN 1103 was relinquished by Newmarket Gold NT Holdings Pty Ltd on the 24th February 2016. Bacchus Resources Pty Ltd applied for EL 31306 on the 9th June 2016. EL 31306 was granted to Bacchus Resources Pty Ltd on the 29th December 2016. Bacchus Resource's is currently actively exploring the Woolwonga gold project which commenced in 2017 under Authorisation 0935-01. Bacchus Resources has spent $957,189 on the Woolwonga Project (EL 31306) upto the end of the reporting period.