geologists report on brumbys gold projects, page-3

3.2
Exploration History
Modern exploration of the Brilliant Well
project area commenced in 1971 with
Hawkestone Minerals drilling six holes
in the Madman Well area. Hawkestones’
drilling tested concealed aeromagnetic
anomalies and intersected quartz-magneite
diorite and gabbro but no mineralisation.
During the 1970s and 1980s, the western
and south-western portion of what is now
EL37/799 was held as part of the extensive
exploration program for VMS base metal
sulphide deposits conducted by Australian
Selection Pty Ltd., BP Minerals Aust Pty
Ltd., Carpentaria Exploration Co Pty Ltd
(“MIM”), Chevron Exploration Corporation
and Seltrust Mining Corporation Pty
Ltd., associated with their Teutonic Bore
Base Metals Project. Work consisted of
interpretation of detailed aeromagnetic
data, grid based RAB drilling, surface EM
surveys and percussion and diamond
drilling to test EM anomalies. Little
of this work actually occurred within
EL37/799, however detailed aeromagnetic
interpretation along with RAB drilling
enabled production of a good qualitysolid geology map for the area. The map
indicated that a prospective felsic-mafic
volcanic assemblage, similar to those
hosting the Teutonic Bore VMS deposit,
continues into the Charlie Chicks Well area
in EL37/799. The EM surveys generated
two possible conductors which were tested
by percussion drilling and diamond drilling
between 1985 and 1988. The western and
most significant anomaly is located outside
of EL37/799, where drilling intersected
a thick sulphidic and graphitic shale and
chert horizon, barren of any significant
base metal or gold. The eastern EM target,
located within EL37/799, was tested
with one percussion hole which failed to
adequately explain the anomaly.
Between 1989 and 1991, Asarco Australia
Ltd carried out lag sampling and resampled
old drill holes. Some of this
work was carried out within the area now
occupied by EL37/799 but no significant
results were returned from the area.
Also during the same period, Golden Deeps
Ltd and Placer Exploration Ltd in joint
venture, carried out regional exploration
mainly outside of the project area and
identified northeast-southwest trending,
gold bearing gossanous quartz veining
about 2 kilometres east of Deep Well.
Rock chip samples assayed up to 11 2 g/t
Au. The exact position of the occurrence
is unknown, but may occur in granite
just outside of the southern boundary of
EL37/820.
Between 1994 and 2002, Sons of Gwalia
Ltd (“SOG”) explored an area from Madman
Well in the south to Holding Paddock Bore
in the north of EL37/831. SOG completed
90 vertical RAB and aircore drill holes
on broad spaced traverse intervals of up
to 1 kilometre, targeting aeromagnetic
anomalies and interpreted structures.
Several anomalous (>100 ppb Au)
intersections were made in the vicinity of
Christmas Well and Madman Well, including
12 metres at 197 ppb Au from 3 metres
(hole MWA102) to the end of the hole and
6 metres at 240 ppb Au from 66 metres
(MWR168) to the end of the hole. SOG
made no conclusions or recommendations
and no further work was undertaken.
During 1998 and 1999, Voyager Gold NL
(“Voyager”) and Delta Gold Ltd (“Delta”)
in joint venture explored the southern part
of the project area south of Madman Well.
Ground water sampling, soil sampling,
RAB drilling (31 holes; 1,798 metres) and
aircore drilling (81 holes; 5,149 metres)
was conducted. A gold and arsenic trend
coincident with the interpreted position of
the Deep Well Shear Zone was defined bythe drilling and anomalous silver, copper and
zinc values were also intersected. Although
some infill drilling was carried out, on lines
spaced at 400 metres and 200 metres, some
anomalous intersections, particularly along
the southern part of the anomaly, remain on
lines at 1 kilometre spacing.
The best intersections were recorded in
hole TDA15 where a 6 metre intersection
from 52 to 58 metres averaged 0.65 g/t
Au including 1 metre from 53 to 54 metres
assaying 2.75 g/t Au. TDA15 also contained
anomalous values of up to 350 ppm Cu,
720 ppm Zn and 3.7 g/t Ag. Several other
holes intersected gold values between 0.10
g/t Au and 0.35 g/t Au over 5 meter widths
mostly at down hole depths greater than 65
metres. No further work was completed.
Following Voyager and Delta’s work, Strata
Mining Corporation Ltd, an associated
company of Voyager, completed a vacuum
soil sampling program to test the southern
extension of the Deep Well Shear south of
the Voyager-Delta RAB and aircore drilling.
One hundred and two samples were
collected on a 200 metre by 50 metre grid.
Several low order anomalies were defined,
and a best result of 13.2 ppb Au returned.
No further work was carried out.
3.3
Exploration Potential and Strategy
The Brilliant Well project provides Brumby
with the opportunity to explore a large area
of Archean granite – greenstone terrain
within a mineralised province well known for
its deposits of gold nickel and base metals.
The property holding contains both major
and minor structures with associated gold
and, to a lesser extent, base metal anomalies
which to date have only been lightly
explored. Exploration carried out so far can
be considered to be of a preliminary nature.
Brumby has identified several anomalous
areas where they intend to further explore
for gold with RAB and aircore drilling
programs to identify targets for RC drilling.
These programs include:
infill drilling along the southern portion
of the Deep Well Shear Zone where drill
traverses are currently 1 kilometre apart,
angled drilling at an orientation more
likely to penetrate the mineralised
structure in the vicinity of anomalous
results in TDA15 and other holes,
reconnaissance aircore drilling across
structurally favourable areas along the
Deep Well Shear Zone identified from
aeromagnetics that have not been
previously tested,infill and extension drilling of the
Christmas Well anomaly identified by SOG
on drill traverses at 1 kilometre spacings.
preliminary aircore drilling to determine
the depth of transported cover and the
nature of the underlying Archean rocks
at the aeromagnetic anomaly north of
Skeleton Well.
Previous exploration for base metals in
the vicinity of Charlie Chicks Well indicates
that the similar stratigraphy to that
hosting the Teutonic bore copper- zinc
deposit is present in the area. Extensive
EM surveys were conducted in the area
and anomalies identified, but no base
metals were detected in drilling. Since
that period of exploration in the 1970s and
1980s, the sensitivity of EM techniques,
for both surface and downhole surveys,
has improved considerably. Given this
advancement in geophysical technology,
Brumby believes new surveys are
warranted in EL37/799.
As well, anomalous copper, zinc and silver
values in hole TDA15 and aeromagnetic
data suggests a possible folded repetition
of stratigraphy, favourable for base metals
along the Deep Well Shear Zone south from
Madman Well.
Brumby also intends to explore for nickel
in the tenement area. Aeromagnetic highs
in the vicinity of Madman Well and in the
northeastern part of the tenement area may
represent ultramafic bodies with potential
to host nickel mineralisation.
Brumby has budgeted for Year 1
expenditure of $150,000 and a Year 2
expenditure of $250,000. Budgeted
expenditure is shown in the table below.Briliant well activity Year 1 Year 2 Total
Access/Compensation Requirements 1 0,000 1 0,000 20,000
Data Review 1 5,000 - 1 5,000
Geophysics 25,000 25,000 50,000
Field Sampling 1 5,000 - 1 5,000
RC/RAB Drilling/Aircore drilling 75,000 1 25,000 200,000
Diamond Drilling - 60,000 60,000
Assaying 1 0,000 30,000 40,000
Total expenditure 150,000 250,000 400,000 OEC considers the exploration strategy
and proposed program to be consistent
with the status and mineral potential of
the project. The planned expenditures are
considered to be sufficient to meet the cost
of the proposed program and are adequate
to meet the statutory annual expenditure
commitments for the tenements.
4.Principal Sources of Information
Information for this report was drawn
from several sources including published
technical reports, public domain corporate
information and open file company reports
held by the Western Australia Department
of Industry and Resources (“DOIR”). Among
an extensive number of open file company
reports consulted, those specifically
pertinent to each project area are listed as
follows:
Frances Furness Project
Dusky Holdings Pty Ltd-Lithos Exploration
Services Pty Ltd: DOIR Wamex Item 12225
Brilliant Well Project
Golden Deeps Ltd and Placer Exploration
Ltd: DOIR Wamex Items 6017 and 6598
Sons of Gwalia Ltd: DOIR Wamex Item
13422
Voyager Gold NL (“Voyager”) and
Delta Gold Ltd: DOIR Wamex Item 10746
Strata Mining Corporation Ltd:
Wamex
Item 10746
Principal published reports and public
domain reports consulted are:
Cullen, I., Jones, M. and Baxter, J.L., 1990.
Nevoria gold deposit, in Geology of the
Mineral Deposits of Australia and papua
New Guinea (Ed. F.E. Hughes), pp 301-305.
The Australian Institute of Mining and
Metallurgy: Melbourne, Monograph No. 14Griffin, T.J., 1990. Southern Cross Province
in Geology and Mineral Resources of
Western Australia. Western Australian,
Geological Survey Memoir 3, p 60-77.
Griffin, T.J., 1990. Eastern Goldfields
Province in Geology and Mineral Resources
of Western Australia. Western Australian,
Geological Survey Memoir 3, p 77-11 9.
Jorgensen, G.C., 2006. Leonora project
information document, BrilliantGold Pty Ltd
(unpublished)
Keillor, B., 2006. Annual Technical report,
Frances Furness Project, Independence
Group NL (unpublished)
Maddocks, G.E., 2004. Frances Furness,
ML77/25 and PLA77/3464, Marvel Loch,
WA. (unpublished)
Rolley, P.J. and Baxter, J.L., 1990. Marvel
Loch gold geposit, in Geology of the Mineral
Deposits of Australia and Papua New
Guinea (Ed. F.E. Hughes), pp 297 – 300.
The Australian Institute of Mining and
Metallurgy: Melbourne, Monograph No. 14.