30/01/2003 10:07:54 CENTRAL WEST GOLD 12,500,000 shares on issue last price .15 cents Market cap $ 1,875,000 Second Quarter Activities & Cashflow Reports
REVIEW OF EXPLORATION FOR THE QUARTER ENDING DECEMBER 2002
NEW SOUTH WALES
BOOROOK
Exploration Licence 5937 embraces the Boorook silver and gold field 33 km northeasterly from Tenterfield and 14 km northwest of Drake in New England, where numerous small but rich lodes within metasediments and volcanics near granite in close proximity to the regionally important Demon fault were discovered in the 1870's.
From operations mainly in the period to 1885 a production of almost 125 000 ounces of silver (from about 5 000 tonnes of ore) and 1 000 ounces of gold has been recorded. Actual gold production undoubtedly was much greater, but gold grades cannot be assessed from the available data.
This metal production was obtained predominantly from two main lines of mineralisation - the Golden Age and, 1 km to the west, the Wellington (or Nil Desperandum) - traceable for up to 3 km along their northerly trend. Numerous other lodes are known within the Licence, but there is little record of their extent and production.
Lode widths ranged up to 6m (possibly where mineralised structures intersected), but the average was 0.6-1.0 metre. The length of the shoot worked in the Golden Age Mine ranged up to 85m, with operations reaching a depth of 97m on the underlay.
Most of the ore won from this mine was oxidised (extending to the 25m Level); The primary ore, (mixed base metals, gold, pyrite, arsenopyrite and silver sulphosalts) was complex and posed considerable metallurgical problems. Mining was also adversely affected by water influx and lack of development capital.
Previous exploration in the Boorook field comprised mapping, sampling, soil and stream sediment geochemistry, IP geophysics and seven percussion and cored holes (totalling 537m in length) drilled in the early 1980's.
Work to-date by the Company has comprised geological examination and sampling of many of the old mines, with a total of 195 samples (from dumps and outcrop chip-channel) collected for assay. From this work 8 zones (totalling 11 km in strike length) prospective for narrow, high grade gold-silver vein mineralisation have been identified.
The average grade of the 26 samples higher than 1 g/t gold was 11.15 g/t; the 4 samples above 10 g/t averaged 40.54 g/t with a maximum of 157 g/t. For silver 27 samples in excess of 100 g/t averaged 587 g/t; 5 samples above 1 000 g/t averaged 2 070 g/t with a maximum of 3 380 g/t.
Follow-up exploration (including trenching and drilling as appropriate) is planned for the coming months.
The Boorook silver/gold project offers significant potential for the discovery of small to medium sized, high grade and high value vein deposits that could offer development potential in the short term.
MOUNT HOPE
Anticipated grant of the Mount Hope Licence Application during the coming quarter will permit planned drilling at Mount Solitary to increase resources to be undertaken.
No work was undertaken within the Gilgunnia Licence.
ROCKVALE
Field work at the old Ruby Silver Mine was continued during the period under review.
This work has indicated that the silver-rich shoots are associated with late stage acid dykes within the Rockvale Adamellite.
The line of lode is traceable for 650m in old workings, with widths of up to almost 3 m reported.
A geophysical survey 32 years ago outlined an anomalous IP zone to the northeast of the Main Shaft.
This zone, as well as the silver mineralisation encountered in previous drilling, will be the focus for future exploration in the area, with drilling planned for later this year.
OTTERY
No work was carried out during the quarter in the Ottery and adjoining Licences which cover prospective tin mineralisation in the Emmaville District.
GRENFELL
The Grenfell Licence Application was cancelled in November after an initial field inspection of the known silver and gold deposits proved disappointing.
ELA 2000 covering an area of Ag-base metal-As-Sn concentration centred 27 km northerly from Deepwater in New England was lodged during the period under review.
Licence pursuant to this Application and those at Belara and Wisemans Creek have been offered to the Company and it is expected formal grant of title will take place within several months.
BOBADAH
Triako Resources are the JV operator of the Bobadah Licence 50 km to the north.
No exploration activities were reported in this area during the quarter.
JV partner Thundelarra Exploration Ltd report the following for the quarter ending December 2002.
"The Rothsay project hasan Indicated/Inferred Resource of 69 000 oz of gold at an average grade of 11 g/t gold using a 7 g/t cut-off and a 1.2 in minimum mining width. The Rothsay mine is developed on a major shear zone, with consistent quartz veining extending for 600 m. A successful diamond drilling program was completed last quarter by Menzies Gold Ltd, with holes targeted below existing workings in order to obtain additional resource information and representative metallurgical samples for production planning. Two metallurgical samples were submitted to Perth based metallurgical laboratory, Oretest. The samples were tested for traditional gravity/leach amenability as well as conventional flotation. The results were positive, with total recoveries ranging from 96.8% to 97.9% and reagent consumption low to moderate. Importantly, the results indicate that the deeper Rothsay ore is amenable to conventional processing and does not require flotation as originally assumed."
QUEENSLAND
MARY KATHLEEN
No progress has been made on Indigenous Access Agreement negotiations over the Mary Kathleen group of tenements.
TASMANIA
OONAH
Significant Sn + Cu/Ag mineralisation occurs within a relatively wide zone of quartz-siderite veining (the Stannite Lode) about 2 km northwest of Zeehan in northwestern Tasmania.
In 1970 drill indicated/inferred resources were reported as 540 000t @ 1.46% Sn, 1.81%Cu and 5.1 oz/ton Ag.
During the quarter all data held by Mineral Resources Tasmania was examined and site inspection of the Licence area was undertaken.
The results of all work to-date on the Stannite Lode have been collated and an up-dated resource estimate is being prepared.
The above report has been prepared by Lincoln McClatchie of McClatchie Pty Ltd who is a competent person as defined under the Australian Stock Exchange List Rules.
Mr McClatchie has consented in writing to the inclusion of the above Information in this report in the form and context in which it appears.
CWG Price at posting:
0.0¢ Sentiment: None Disclosure: Held
