Past Mining – Massive Sulphide Ore • Past mining concentrated on the “copper‐rich” massive sulphide ore (in the centre of the deposit) • Previous mining to 450m depth • More than 35 million tonnes of high‐grade ore was mined containing on average 1 – 3 % copper, 2 – 6 % zinc, 1 – 7 g/t gold and 100 g/t silver • Deep drilling has found additional ore at 850m depth. This deeper ore offers an attractive future exploration target
Remaining Mineralisation – Copper & Gold Ore • Siliceous copper and gold ores east and west of the massive sulphide ore not considered by past miners and large areas of mineralisation remain • Historically this ore was too hard to extract (hence the name “Hard” or “Siliceous” ore) and the copper grades were lower • Gold content in the ore never a focus of the mine • When the mine closed in 1992 the gold price was only around US$350 per ounce • With gold approaching US$1,000 per ounce this mineralisation is now very attractive
Past drilling shows there are sub‐vertical continuous zones of massive to disseminated copper and gold mineralization to at least 1000m depth. • The limited assays from this drilling show this mineralisation can grade between 1 – 5% copper and 1 – 30 g/t gold. There are local bonanza gold grades (500 – 800 g/t ). • Shallow drilling just prior to mine closure in 1992 produced intercepts such as 24 m @ 5.8 g/t Au, 0.5% Cu (ending inmineralization), 42 m @ 3.4 g/t Au, 0.5% Cu, 16 m @ 7.1 g/t Au, 0.7% Cu*.
• A major drilling program is required to determine the potential of the Eastern and Western copper and gold ore zones.
Possible Size & Value of the Copper and Gold Ore Zones
• Interpretation of past drilling to 300m depth suggests the Eastern and Western Ore zones may comprise a greater volume of mineralisation than that previously mined.
• Large compared to similar mineral deposits world‐wide. e.g. Rosebery (Tasmania) 25 Million tonnes; Boliden (Sweden) 10 Million tonnes; Mt Morgan (Queensland) 50 Million tonnes; Horne (Canada) 54 Million tonnes.
• Mineralisation is also known to extend deeper than 300m to at least 1,000m in depth.
• Until we complete our own drilling we will not know the grade of the copper and gold in these zones.
Additional data received from past drilling at the historic Falun gold-copper-zinc mine in Sweden has extended the near-surface high grade gold mineralisation of the mine.
• High grade gold intersections include:
• 37.4 m @ 23.6 g/t gold (including 1.2 m @ 656 g/t gold) • 12.9 m @ 23.5 g/t gold (including 0.55m @ 490 g/t gold) • 15.2 m @ 9.3 g/t gold • 14.4 m @ 8.2 g/t gold (including 0.07m @ 102 g/t gold) • 50.8 m @ 3.4 g/t gold (including 8.2 m @ 13.8 g/t gold)
• This mineralisation forms part of the Eastern Copper-Gold Zone, which has a length of 500 metres, is up to 200 metres wide, and extends below 400 metres depth.
• A diamond drilling programme comprising 17 holes (3,600 metres) to confirm this near surface mineralisation at depth is being permitted.
• Transfer of ownership of Falun exploration permit completed.
GMR Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
