Ann: Quarterly Activities & Cash Flow Reports-XAM.AX, page-3

Oyut Ulan (OU) some weekend musings.

To try and see what the recent trenching and drilling at OU meant in terms of spatial distribution and some basic geological parameters I plotted Holes 31-46 on google earth along with the approximate traces of some veins and location of some trenches.

Some observations:

Reconnaissance drilling of multiple vein systems

4 with shallow, significant gold intersections

Vein orientation and dips variable - Sub vertical dips suggested in Holes 43&44,   shallow 20 -30deg (?direction)  at Bavuu

Intersection grades only appear to be slightly to moderately skewed by narrow higher grades.

Some sections suggest true thicknesses up to 10m (Holes 43 & 44) but mostly 2- 5m.

Possible mineralized lengths from drilling:  Stockwork ~25m; Bavuu ~115m.  At Diorite hole are more scattered or scissored.

Holes 43 and 44 were among the most interesting holes for me.  The intersections in these scissor holes suggests 10m true width with both intersecting intrusives at depth.  Trenching of the vein has exposed an irregular roughly E-W striking vein system some 140m long which is open under deeper cover(?).

The overall zone of veining strikes ENE-WSW over some 5 Kms.  Outcrop and shallow cover with visible veining are probably constraining exploration at the moment and producing enough targets to keep XAM busy exploring the area for some time to come.

The new soil survey is IMO quite exciting.  The existing drilling and trenching do not appear to have tested some of the larger anomalies.  In fact some of this earlier work does not appear to be reflected by the soil sampling results.  Follow up of these results will be interesting.



It is interesting to speculate what these vein systems may mean for the possible existence of a porphyry copper system at depth.  Too early to do much more, but the presence of several small intrusives in outcrop and drill holes does add limited support to such an idea.

The following model, while probably not appropriate for the OU environment, gives a general view of the relationship of veining to a possible deeper porphyry copper system.



Nothing really new in this post.  Part of a weekend project for me to get more of a feel for the fundamentals of OU.  Still a lot to look at both at OU and Khamagtai.