Saugon

SAUGON GOLD-SILVER PROJECT (Medusa 50%)

Fig 2 - Eastern Mindanao topographical relief map, small
Figure 1: Eastern Mindanao topographical relief map, showing consolidated tenement outlines, mines, deposits and prospects.
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Figure 2: Regional geology showing the First Hit vein set and the location of the drill holes
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Figure 3: Longitudinal projection of the gram-metre contours for the First Hit Vein
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The Saugon prospect is situated approximately 10 kilometres south of the Co-O Gold Mine and 28 kilometres by road from the Co-O mill (figure 1). Work commenced in early 2003 on the First Hit Vein which has been traced intermittently at the surface over 600 metres and which has been explored underground via a 30 metre deep winze, level development and drilling of 31 diamond drill holes.

FIRST HIT VEIN

Discussion

Figure 2 shows the regional geology, location of the First Hit Vein, and the Paradise and Mabas Prospects. Figure 3 shows the longitudinal projection of the First Hit drill hole intersections.

Work in 2004 involved drilling of the First Hit Vein in conjunction with underground development via a 30 metre deep inclined winze down the vein-breccia to assist in understanding the mineralisation. 

Regional Setting

Subsequent to the drilling in 2004, an aeromagnetic survey was completed which showed the First Hit Vein set are on the northern edge of a large, northeast-trending demagnetised zone over 2,000 metres wide and approximately 8,000 metres long, part of which is shown on Figure 2. A number of features within this zone were interpreted to be suggestive of intrusive bodies, possibly porphyry copper-related. Field work has established that outcropping areas of the northern side of this zone show intense clay-pyrite alteration, which is presumed to extend across the bulk of the zone under cover to the south.

Sections of the demagnetised zone are covered by younger sediments, some grits and shales at the base and capped by white, semi-massive to massive limestone. This appears to be the same younger sequence that occurs to the north along the eastern margin of the Company’s tenements.

Drilling

Drilling recommenced in 2010 with repeating the 2004 un-surveyed holes in order to establish the geometry of the mineralised system and to gain a better understanding of the mineralisation. Drilling was completed in Dec 2011. Results are available in announcements dated 01 December 2010 and the March 2012 Quarterly report.

Resources

The Company’s current mineral resources for Saugon was previously announced in accordance with the guidelines of the JORC Code 2004 (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). Refer to announcement of 25 September 2014, the September 2014 Quarterly Report, and the 2014 Annual Report.