Barobo Gold Corridor

                 Figure 1: Tenement location map showing  mines and prospects
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                            Figure 2:Regional Geology map showing Tambis District and Guinhalinan Prospect
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Figure 1 shows the regional location structure and Figure 2 shows the geology highlighting the mineralisation potential in favourable limestone and calcareous clastic rocks along the Barobo Fault Corridor which is interpreted as the same sequence that has been extensively skarned and mineralised at the Kamarangan copper porphyry prospect. 

This sequence is interpreted as the oldest calacareous sequence known to date in the district and may be up to 12km long, from Kamarangan to Guinhalinan. The sequence is regarded as favourable for hosting large disseminated bodies of gold mineralisation.

The mineralisation located to date is generally associated with silica and sphalerite-galena replacement of the host rocks and has been located in numerous outcrops and in drill holes.

Table I summarises some of the more significant drill hole intersections from scout drilling (four holes at Guinhalinan, seven holes at Saguilsuilan and six holes at Alikway). The focus of this scout drilling was on potential high grade mineralisation, not potentially open-pittable targets. 




The Guinhalinan Gold prospect is shown on Figure 2 within one of two parcels of granted MPSA 343-2010-XIII and is subject to a Mines Operating Agreement with Das-Agan Mining Corporation, who will receive a 3% gross royalty on all production from the MPSA. The other parcel comprises the Lingig Prospect.

In 2009-2010 the Company undertook a limited programme of trenching and diamond drilling on several siliceous outcrops containing gold mineralisation while seeking additional high-grade material for the Co-O Mill. Four drill holes were completed in 2009, and encountered moderate grades and widths including 7.30 metres at 2.72 g/t Au from 22.6 metres (drill hole DGN002), 8.15 metres at 1.30 g/t Au from 27.55 metres (drill hole DGN003), and 6.70 metres at 2.08 g/t Au from 27.4 metres (drill hole DGN004).

Summary information of the geology and mineralisation, and historical drilling results were reported in the Company’s 2009 annual report and September 2009 quarterly report.

The Usa porphyry copper and the Alikway base metal skarn prospects are located some 2.0 kilometres and 1.5 kilometres respectively, to the south and southeast of Guinhalinan, within close proximity to the projected position of the Barobo Fault.

Soil sampling programme

As reported in the September 2014 quarterly report, an extensive soil geochemistry survey at Guinhalinan was completed within MPSA 343-2010-XII. The survey was conducted on a sample spacing of 50 metres on 100 metre spaced grid lines. A total of 1,190 samples were collected from the B horizon, sieved to -80 mesh, and analysed for gold by Fire Assay/atomic absorption spectrometry (AAS) technique, and Ag, Cu, Pd, Zn, As and Mo by Aqua Regia/ inductively coupled plasma-optical emission spectroscopy (ICP-OES) technique (Refer Appendix C for JORC Code 2012 Table 1 report).

Soil sampling results

As shown on Figure 2, the contouring of the raw soil sampling results shows a regionally significant, consistent and extensive corridor of ‘gold in soil’ anomalies up to 5 kilometre long (open to the south) and up to 2 kilometres wide. Within this corridor there appears to be two distinct sub-parallel sub-corridors of gold in soil anomalism representing at least two separate zones of gold mineralisation.

The western sub-corridor coincides with a partially exposed carbonate replacement sediment-hosted sequence with a shallow east dip towards the nearby projected position of the Barobo Fault (Fig 2). This zone is in places obscured by an overlying veneer of younger sediments.

The eastern sub-corridor is currently being investigated. In some locations, some of the soil anomalies appear to be associated with a shallow- to flat-lying conglomeratic sequence comprising clasts of silicified, carbonate replacement rocks.

Field programme

Follow-up of the soil anomalies includes detailed geological and regolith mapping, and sampling of the regolith and underlying stratigraphy, to identify scout drilling targets.

Table 1. Summary of scout drilling on Barobo Corridor limestone hosted prospects

Hole East North Dip Azimuth
Gold (uncut) (g/t gold) Zinc
DGN002 615640 936325 -55 315 22.60 7.30 2.72 0.62
DGN003 615639 936323 -50 275 27.55 8.15 1.30 0.27
DGN004 615593 936377 -45 140 15.40 6.00 0.67 0.02
27.40 6.70 2.08 0.38
41.10 17.60 0.81 0.05
SAG006 613277 939478 -45 230 36.60 24.00 0.52 No assay
ALK001 616646 934544 -50 180 116.40 1.90 21.20 0.85

Notes:  Assaying by Philsaga Mining Corporation. Au by fire assay with AAS finish; Zn by AAS.