re: castlemaine - the next bendigo?

http://sa.iguana2.com/cache/c39a39f49db32cb8ef2e5df59a4fd175/ASX-AXD-253724.pdf

• Further encouraging drill results at Sebastian.
• Expansion of exploration team and appointment of CFO.
• Minimal net cash outflow.
• The Castlemaine 3D Exploration Model gains momentum.
• Assessment of the Nick O’ Time resource and Tarnagulla targets commenced.

Exploration Summary
Exploration activities were concentrated on diamond drilling at the Frederick the Great Prospect
and soils sampling within the Sebastian Project. Also initiated within the quarter is a 3D
geological exploration model of the entire Castlemaine Project area. Research into historical
mining notices continues. All historical drill data will be incorporated into this comprehensive
study. All available geological information is planned to be in digital format by mid year and the
model built ready for use by the end of the September quarter.
The period also saw 3 permanent staff join the AXD team. Two geologists in Project Geologist,
Meagan Andrea (ex-Bendigo Mining Limited) and Exploration Manager, Wessley Edgar, join
Chief Financial Officer, John Jennings, as new additions to the team. Importantly, experienced
Victorian geologist and former AXD Exploration Manager, Brian Cuffley is retained by the
Company in a specialist technical role.


The map above shows that quartz reef mines within the
Castlemaine Goldfield extend for more than 12 kilometres which, looking at the table of
Historical Reef dimensions below, is compara ble with Ballarat and Bendigo pre modern
exploration. Furthermore, the Central Victorian style of gold mineralisation is often repetitive to
depth and the new geological model is being made to capture similar depths as at the Ballarat
and Bendigo Goldfields.
Table 1. Historical Quartz Reef Gold Production and Line of Reef Dimensions.
Goldfield
Line of Reef Strike
Length
Historic Mine
Depths Historic Reef Production Comment
Bendigo 25kms with individual
reefs up to 10kms 1500m 18M oz (1) at 17.0g/t Au (2) Most gold won from a 1km wide
structural zone
Castlemaine 12kms 387m 0.88M oz at 10.5g/t Au (3) Production predominantly from
Wattle Gully
Ballarat West (4) 5kms
Ave. 400m,
One shoot to
1000m
0.8M oz at 14.0g/t Au Water inflow terminated mining
during WW1
Ballarat East (4) 3.5kms 490m 1.7M oz at 8.9 Au Total Ballarat Historical Reef
production = 3.2M oz Au