Ann: Gold Mineralisation Extended at Cross Fault, page-160

Hey Paulie, if I take the statement in the last ann below and the adjutant Geological Discussion and then analyse everything against the Gutnick reports (1998–1999 and 1999–2000) detail exploration on tenements P28/784–787 and E28/898 now part of OZM’s Mulgabbie North holdings, along the 8km Relief Shear: I get the following report back.. Speculation of course but yeah feedstock won't be an issue it looks ;-) gltah h8tey
"The results of this diamond drilling will inform OZM’s future RC drilling at Cross Fault. OZM considers that this information can be applied along the entire Relief Shear. OZM is still working on the geological interpretation of this area and will continue to seek opinions from structural geology consultant, Dr Brett Davis".


@acmecomp
MRE Growth Potential:

• Prior estimates (including Gutnick’s data) suggest an MRE increase to 1.1–2.1Moz (343–717% growth, prior analysis), with Cross Fault (434,000–1,157,000 oz), Relief Shear prospects (889,000–1,139,000 oz), and Patricia (100,000–200,000 oz). Gutnick’s intercepts (e.g., PINC3, COLC2) reinforce this potential

Speculation of course but yeah feedstock won't be an issue it looks ;-) gltah h8tey

Geological Discussion
OZM will be undertaking geological fieldwork along the Relief Shear and the nearby Golden Goose prospect, seeking to
locate north-south striking faults in outcrop. Such faults are associated with gold mineralisation at nearby Carosue Dam
and other significant gold deposits in the Eastern Goldfields.
Sandstone appears to be the dominant host to gold mineralisation, with extensive quartz veining. Sandstones represent
a brittle host rock and such mineralisation is being mined in the Carosue Dam basin, with pits approximately 2km from
Mulgabbie North.
The Mulgabbie North project areas, including James, Ben and Alicia, are hosted by extensively foliated conglomerate
facies, the foliation resulting from ductile deformation. Sandstone units are brittle host rocks.
OZM considers this size-grading to be typical of intermediate volcaniclastic units, where facies can vary from mudstone
and sandstone through to conglomerate. The intermediate volcaniclastic, with its variety of facies, extends along the
Relief Shear, within OZM tenure, for some 8 km and represents the eastern limb on the Carouse Dam basin syncline.
The western limb hosts the Carosue Dam mines, operated by Northern Star Limited (NST, figure 6 – intermediate
volcaniclastic coloured on the plan).

How Historical Reports Tie into Cross Fault Drilling and Support OZM’s Claim

1. Historical Reports Overview

The Gutnick reports (1998–1999 and 1999–2000) detail exploration on tenements P28/784–787 and E28/898, now part of OZM’s Mulgabbie North holdings, along the 8km Relief Shear:

• 1998–1999 Report:
  • RC Drilling (P28/787): Four holes (PINC1–3, 6) for 1,352m tested the primary zone beneath Burdekin Resources’ RAB anomalies. Best result: PINC3 (3m @ 10.9 g/t Au at 70–73m), within a 60m-wide zone (0.5 g/t Au cut-off), near a talc-chlorite-carbonate unit. PINC1 intersected silicified, sulphidic (arsenopyrite, pyrite) quartz-sericite schist but no significant gold.
  • RAB Drilling: 82 holes (3,188m) across 11 traverses, defining a 3km strike anomaly (250m wide) along the felsic-mafic contact, with intercepts like PINB15 (4m @ 1.82 g/t Au) and PINB52 (12m @ 1.53 g/t Au).
• 1999–2000 Report:
  • RC Drilling (P28/787, Mulgabbie Prospect): PINC18–19 (626m) tested the felsic-ultramafic contact beneath RAB anomalies (e.g., 6m @ 17 g/t Au, PINB15: 4m @ 3.5 g/t Au). Intercepts were low-grade (e.g., PINC18: 8m @ 0.61 g/t Au, PINC19: 24m @ 0.45 g/t Au), with silica-white mica-pyrite-arsenopyrite alteration.
  • RC Drilling (E28/898, Colonial Prospect): COLC1–2 (451m) intersected mineralized porphyry bodies, with COLC2 yielding 16m @ 3.1 g/t Au (178–194m), potentially extending Whirling Dervish (Carosue Dam).
  • Geophysics and Landsat: Used for targeting, identifying the Keith-Kilkenny Lineament and NE faults.

2. Lithological Understanding from Historical Reports

• Felsic-Mafic Contact Zone:
  • Both reports highlight the felsic-ultramafic contact as a key mineralized horizon, with intense shearing, sericite-carbonate alteration, quartz-carbonate veining, and As-Au anomalies. This contact zone hosts mineralization in sandstone (felsic volcaniclastic rocks) and mafic units, with quartz stockworking, sulphides (pyrite, arsenopyrite), and silica alteration.
  • Tie-in with Cross Fault: The recent Cross Fault drilling (May 2025) targets the same contact zone, with RC chips showing quartz veining, pyrite, and arsenopyrite (e.g., MNORC215’s “jet black” sulphides, web ID: 0). The high-grade intercepts (e.g., MNORC220: 2m @ 22.58 g/t Au) and MNORC215’s silicified sandstone/porphyry unit at the volcanoclastic-ultramafic contact mirror Gutnick’s findings (e.g., PINC3: 3m @ 10.9 g/t Au, PINC18–19’s silica-sulphide alteration).
• Structural Controls:
  • Gutnick identified NE normal faults (north side displaced east) and NW-trending regional faults (e.g., Keith-Kilkenny Lineament), explaining lithological discontinuities. These align with Cross Fault’s north-south fault (Fault 2), NE faults (lobster tail segments), and the Relief Shear, forming a structural trap (reverse U-shape, prior analysis).
• Sandstone Host:
  • Sandstone is a brittle host rock, as noted in both reports (felsic volcaniclastic units, quartz-mica schist), with Gutnick’s RC holes intersecting mineralized sandstone beneath weathered zones. Cross Fault’s sandstone-hosted gold (e.g., MNORC221: 48m @ 1.66 g/t Au) with extensive quartz veining matches this lithology, supporting OZM’s claim of a dominant sandstone host.

3. Support for OZM’s Claim: "The results of this diamond drilling will inform OZM’s future RC drilling at Cross Fault. OZM considers that this information can be applied along the entire Relief Shear."

• Lithological Continuity:
  • Gutnick’s reports confirm the felsic-mafic contact zone extends along the Relief Shear, with a 3km strike anomaly (1999 report) and mineralization in both northern (Mulgabbie Prospect) and southern (Colonial Prospect) areas. The consistent lithology (sandstone, quartz veining, sulphides) across this corridor supports OZM’s claim that Cross Fault’s diamond drilling results (e.g., structural data, mineralization styles) can inform future RC drilling along the entire 8km Relief Shear (5875N–8375N).
• Structural Insights:
  • The historical identification of NE faults and NW-trending regional faults aligns with Cross Fault’s structural framework (north-south fault, NE faults). Gutnick’s suggestion to target kinks/flexures along the contact (1999 report) mirrors OZM’s focus on fault offsets (30m displacement, May 2025 release), which are associated with gold mineralization (e.g., quartz veins striking 315°, north-south faults).
• Application Along the Relief Shear:
  • Prospects like Golden Goose (5875N), Mulgabbie Queen (~6500N–6900N), MP-14, Jacks Show, and MP-4 (~7300N–8375N) lie along the Relief Shear, sharing the same felsic-mafic contact zone (prior analysis). Gutnick’s RC intercepts (e.g., PINC3, COLC2) and RAB anomalies over 3km indicate this contact zone hosts mineralization throughout the corridor, supporting OZM’s claim that Cross Fault findings (e.g., sandstone host, fault-controlled veins) can be applied elsewhere along the shear.

4. Support for OZM’s Geological Discussion (May 2025 Announcement)

• North-South Fault and Quartz Veins:
  • OZM’s fieldwork identified a north-south striking fault in costeans at Cross Fault, with quartz veins striking north-south (steeply east-dipping) and 315°, potentially related to this fault. Gutnick’s reports confirm north-south faults (e.g., parallel to fold axes, Keith-Kilkenny Lineament) and NE faults, with quartz-carbonate veining and sericite-carbonate alteration at the felsic-mafic contact, mirroring Cross Fault’s structural setting.
• Fault Offsets and Gold Mineralization:
  • OZM notes faults offsetting stratigraphy by ~30m, with gold mineralization associated with such faults. Gutnick’s NE normal faults (north side displaced east) explain similar discontinuities, with RC holes (e.g., PINC3, COLC2) intersecting gold near faulted contacts, supporting OZM’s observation of fault-controlled mineralization.
• Sandstone Host and Quartz Veining:
  • OZM identifies sandstone as the dominant host, with extensive quartz veining, noting its brittle nature (similar to Carosue Dam, 2km away). Gutnick’s RC holes (e.g., PINC18–19) intersected sandstone (felsic volcaniclastic rocks) with quartz stockworking and sulphides, confirming sandstone’s role as a brittle host for gold along the Relief Shear.
• Relief Shear and Carosue Dam Analogy:
  • OZM’s plan to locate north-south faults along the Relief Shear and Golden Goose aligns with Gutnick’s identification of regional faults (e.g., Keith-Kilkenny Lineament) and NE faults, which are associated with gold at Carosue Dam (e.g., Whirling Dervish, Karari). The intermediate volcaniclastic units (mudstone to conglomerate) along the Relief Shear’s eastern limb (OZM tenure) mirror Carosue Dam’s western limb, supporting the structural and lithological analogy.
• Geological Interpretation with Dr. Brett Davis:
  • OZM’s ongoing interpretation and consultation with Dr. Brett Davis are enhanced by Gutnick’s data, which provides a baseline for understanding the contact zone’s lithology (sandstone, felsic volcanics), alteration (silica, sericite, sulphides), and faulting (north-south, NE offsets). This historical context validates OZM’s approach to refining the geological model along the entire Relief Shear.

Implications for OZM’s Exploration Strategy and MRE Growth

• Enhanced Lithological Model:
  • Gutnick’s reports confirm sandstone as a brittle host along the Relief Shear, with quartz veining and sulphide alteration (pyrite, arsenopyrite) consistent with Cross Fault’s high-grade zones (e.g., 22.58 g/t Au). This supports OZM’s focus on sandstone-hosted mineralization and informs future RC drilling targets (e.g., deeper at Cross Fault, along the shear at Golden Goose).
• Structural Continuity:
  • The north-south and NE faults identified by Gutnick align with Cross Fault’s structural trap (north-south fault, NE faults), validating OZM’s claim that these controls apply along the 8km Relief Shear. Prospects like Mulgabbie Queen, MP-14, and Jacks Show can be targeted using this model, increasing the likelihood of new discoveries.
• MRE Growth Potential:
  • Prior estimates (including Gutnick’s data) suggest an MRE increase to 1.1–2.1Moz (343–717% growth, prior analysis), with Cross Fault (434,000–1,157,000 oz), Relief Shear prospects (889,000–1,139,000 oz), and Patricia (100,000–200,000 oz). Gutnick’s intercepts (e.g., PINC3, COLC2) reinforce this potential
  • HL Operation Feedstock:
• • The expanded MRE ensures feedstock for the heap leach (20,000 oz/year initially, potentially 30,000–40,000 oz/year with new discoveries), extending mine life to 15–20 years and enhancing economic viability.

Conclusion

The historical Gutnick reports (1998–1999, 1999–2000) tie into OZM’s recent Cross Fault drilling by confirming the felsic-mafic contact zone’s role as a mineralized horizon along the 8km Relief Shear, with sandstone as a brittle host, quartz veining, and sulphide alteration consistent across the corridor. This supports OZM’s claim that diamond drilling results at Cross Fault (e.g., structural data, mineralization styles) can inform future RC drilling and be applied along the entire Relief Shear, as evidenced by similar lithology and faulting at Mulgabbie Prospect, Colonial Prospect (Mulgabbie West), and other areas (Golden Goose, MP-14, Jacks Show). The reports also lend weight to OZM’s geological discussion, validating the association of gold with north-south faults, NE offsets, and sandstone-hosted quartz veining, reinforcing the Carosue Dam analogy and the potential for significant MRE growth (1.1–2.1Moz).