MINING & EXPLORATION PROJECTS

Philippines

KAMARANGAN PROJECT

Kamarangan Porphyry Copper Target

The Kamarangan prospect is centrally located in a large aeromagnetic anomaly approximately ten kilometres in diameter.

The area is underlain by a well-banded calcareous sequence that appears to be at least 1,600 metres wide. The calcareous sequence has been intruded by a complex of fine- to coarser-grained diorites and some andesite bodies. The intrusives have changed the calcareous rocks to skarn rocks over an approximate area of 1,600 metres by 1,400 metres (Figure 2). The skarn area is open to the east under the younger overlying limestone. The surface geology outcrops are limited mainly to magnetite-rich horizons with secondary hematite.

Some of the skarn rocks may contain variable amounts of garnet, diopside, epidote and pyrite. Areas of siliceous hornfels and unaltered massive limestone were also intersected in the drilling.

Discussion

Table 1 contains a summary of the significant drill hole results.

The intersection of a "fertile" diorite and other vectors from the drilling indicate a possible porphyry copper source to the east-northeast of the drilling conducted to date based on:

1. Copper and gold values in dioritic rocks tend to be higher in holes KAM 1 and 2, and while visible copper minerals are present in KAM 4 although at a lower level than in KAM 1 and 2;

2. Molybdenum mineralisation is visible in KAM 1 to a maximum value of 244 ppm and averages 37 ppm over the last 74 metres of the hole from 357.70 metres depth;

3. Molybdenum mineralisation is visible in KAM 2 to a maximum value of 138ppm and averages 41 ppm over the last 46 metres of the hole from 405 metres depth. Other less coherent zones are present higher up in the hole.

4. Skarn hosted gold with minor copper mineralisation is strongest in KAM 7 in the northeast of the drilled area, suggesting this hole is close to a mineralisation source.

The well mineralised magnetite skarn in KAM 1 (26 to 42.3 metres) and in KAM 2 (40 to 44.2 metres) and the wide skarn style mineralisation in KAM 7 (0 to 19.5 metres, 211.1 to 267.1 metres and 410.8 to 426.8 metres) could also be interpreted to be a halo above and around the 250 by 130 metres elongate deep magnetic anomaly shown on Figure 6. This anomaly could possibly be interpreted as a pencil porphyry style target.

Drill hole magnetite-rich samples will be submitted for estimation of the magnetite contents and preliminary metallurgical testing if further assessments regarding the prospect's magnetite potential are positive.

Induced polarisation and ground magnetics surveys are underway.

View Table 1 - Summary of significant drill hole results