Ann: Trading halt, page-57

Like you, I didn't expect gold to be part of the story at Lewis Ponds....but there is some interesting info around this topic on Ardea's website which was not part of the prospectus https://www.ardearesources.com.au/projects-lewisponds

It is a lot of text but worth reading. The message I got is that ARL management is excited about Lewis Ponds not just because of zinc!!!

As noted in the Prospectus (page 44), Lewis Ponds “occurs on the Lewis Ponds Fault; a subsidiary fault to the Godolphin Fault. The region is well known for being prospective for a variety of deposit types, especially VMS deposits and orogenic gold deposits.”
There are very clear geo-metallurgical associations at Lewis Ponds, possibly representing separate mineralising events, in order of abundance:

1. Dominant Zn-Pb-Ag-Au (stringer dominant but significant massive sulphide interbands).
2. Au-Ag only (which is poorly sampled, thus difficult to quantify as an orogenic gold system).
3. Minor Zn-Pb only.
4. Rare Cu only, always in the footwall.

Lewis Ponds mineralisation is dominantly a 20-50 metre wide stringer (shear vein) system with 2-10 metre thick bands of massive Zn-Pb-Ag-Au mineralisation able to carry sub-grade stringers, with typically 2-5 m internal waste bands.
Having now completed field reconnaissance, it is felt that Lewis Ponds is better evaluated as a base metal-gold stringer system.
From reviewing available drill core at site and archived core photographs, it is clear that extensive zones of sericite-pyrite alteration (potential gold mineralised host) have not been sampled. There is thus a requirement to cut and sample this core (assuming the individual core is still available), with the potential to establish “McPhillamy-style” mineralised systems.
The Ardea intention is to drill a single orientated core hole on Sections 1000mN, 800mN, 600mN and 400mN, and all available core on these 200 metre spaced sections will be re-logged, re-photographed and assayed.
This program will act as a control to allow a resource update based on bulk-tonnage parameters. The known high grade zone extends from Section 300mN to Section 1500mN and ultimately all historic drill holes within this zone will require re-logging and assay. This requirement was not anticipated within the Prospectus work program and has arisen through field studies subsequent to November 2016 Prospectus lodgment.
Whilst siting drill collars for the initial proposed Ardea drill program, a suite of samples was collected as a first pass in defining Lewis Ponds geo-metallurgical types (GeoMet study). At the old Lewis Ponds Main Zone and Tom’s Zone main shafts, the main producers in the field, it was apparent that the dominant shaft mullock at both locations (600m apart along strike) is a distinctive white vuggy quartz-pyrite “sinter” (which appeared to have the appearance of epithermal style mineralization).

	{caption}Table 3 – Lewis Ponds Rock chip sampling{/caption}
1	Location	Sample No	Au (g/t)	Ag (g/t)	Zn (%)	Pb (%)	Cu (%)	As (ppm)	Sb (ppm)
2	Lewis Ponds Main Zone shaft	LP01300	9.9	539	0.05	1.6	0.30	1030	2650
3	Tom’s Zone shaft	LP01301	12.1	272	0.09	2.7	0.01	90	74

The high-grade Au-Ag with anomalous As-Sb is consistent with epithermal style mineralisation, and the low base metal values are not indicative of a VMS setting at the shaft areas.
Base metal and gold production is unknown for the Lewis Ponds shaft. Toms produced 30,000 tonnes of pyrite ore for sulphuric acid production. It is puzzling that such high grade precious metal mineralisation remains at both locations as shaft mullock and was not treated in the historic operation.
This mineralisation style was not predicted within the Prospectus and is of significant economic potential. In particular, “Gold Stringer” is a geo-metallurgical type recognized in Ardea’s work but not described in historic Lewis Ponds records.
Drill approval environmental submissions are being prepared, with Department of Resources and Energy approvals anticipated in time for February 2017 drilling.

Can anyone check if ALD0001 and ALD0002 correspond to Sections 1000mN, 800mN, 600mN and 400mN, as described above.

This is obviously all speculation, but that is half the fun of investing in a multifaceted explorer like ARL.

GLTA