HUGE DISCOVERY - 19m @9.39g/t plus Copper and Silver, page-65

I spent a year (1986) studying Granite Flat for BSc. Honours thesis in Geology at the University of Melbourne. I mapped, on foot, a large area covering all the known workings and surrounding areas. My conclusion was that the mineralisation at Granite Flat was the shear and breccia zone hosted upper reaches of a porphyry system. There were many reasons for this conclusion including the mineralisation type (and associated Bi etc.) and extensive alteration zones with minerals expected in a porphyry system. Widespread occurrences (over kms) of epidote-chlorite alteration, carbonate including siderite in the lodes.

My results were summarised as a poster paper for the Bicentennial Gold 88 conference in Melbourne (1988).

Granite Flat is an I-type granite and part of the Boggy Plains supersuite which hosts economic mineralisation, especially in NSW.

My soil sampling revealed up to 3.16 g/t Au and it picked up existing lodes with workings and new parallel lodes. Rocks containing over 10% chalcopyrite in breccia were found on the waste dumps of mines deep enough to get to the sulphide zone. A sample of which was cut into slabs and one was on display at the Victorian Mines Department library for many years from 1986 onwards. Some breccia lodes contain high arsenic and were mined for ochre pigments.

There are quartz veins in the metamorphic aureole that can be broken out and panned to reveal a good tail of gold. The road embankment on the main road just next to the sawmill is one example.

So you have a porphyry system. The main body of which is at depth below the breccia and shear hosted mineralisation. It will require considerable work on the geophysics and alteration zones to determine where to put the deep drill holes required to see what is down there in the porphyry. To the best of my knowledge there has been no drilling of any great depth and not much overall even near surface.

Good luck to shareholders. I watch with interest.