THE GEOLOGY AND DISCOVERY OF THE GARDEN WELL GOLD DEPOSIT, WESTERN AUSTRALIA

Transcription

1 THE GEOLOGY AND DISCOVERY OF THE GARDEN WELL GOLD DEPOSIT, WESTERN AUSTRALIA Jens Balkau Australian Institute of Geoscientists 15 May 2013

2 Forward-Looking Statements This presentation contains forward-looking statements. Such forward-looking statements may include, without limitation: Estimates of future results of exploration activities; Estimates of future cash flow; Estimates of future capital expenditure and resources; Estimates of mineral reserves, resources and statements regarding future exploration results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries and states in which we operate or sell product to, and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any forward-looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

3 The Geology and Discovery of the Garden Well Gold Deposit Location & Tenements Historical Production Discovery History Geology & Geochemistry Resources & Development Production Conclusions

4 Western Australia Location and Tenements Duketon Gold Project Located 350km NNE of Kalgoorlie 100% Regis owned

5 Moolart Well Garden Well Duketon Gold Project Location Garden Well Garden Well 100km N of Laverton 50 km 35km S of Moolart Well 387 granted leases GRANNY SMITH 1,220 km² of ground

6 Tenements Duketon Gold Project Moolart Well km Garden Well 2009 Duketon Gold Project: 10 deposits granted ML s 7.6 Moz Au Resources 3.0 Moz Au Reserves Cox s Find

7 Duketon Historical Production Duketon Greenstone Belt Moolart Well Garden Well Duketon Greenstone Belt, Mt Margaret Goldfield in 1906 Duketon, Erlistoun and Mulga Queen mining centres in 1890 s Production short lived Moolart Well never prospected or drilled till 2001 Laverton Garden Well never prospected or drilled till 2008

8 Historical Production to 1905 Mistake Gold Mine Erlistoun Golden Spinifex Battery Duketon Mining Centre Tons of Ore Fine ozs Gold Grade oz Duketon 4,850 4, Erlistoun 4,927 5, Mulga Queen 8,020 6, Other 5,873 6, Total 23,670 22, Famous Blue Gold Mine Mulga Queen Production figures to 1905

9 Historical Production in 1990 s Operation Christmas well Russells Find Reichelts Find Production Tonnes Grade g/t Au ozs Au Year 222, , , , , , Total 637, , Reichelts Find Russells Find Christmas Well (Rosemont)

10 Total Historical Production Duketon Greenstone Belt Total historical gold production from 1896 till July 2010 (114 years) approx 120,000oz Moolart Well gold production August 2010 to March 2013 (32 months) 266,053oz Garden Well gold production September 2012 to March 2013 (7 months) 117,157oz Total Regis production since August 2010, 383,210oz Rejuvenated DGB in 2.5 years

11 DGB Gold Endowment: Pre Deposit Resource (koz)

12 DGB Gold Endowment: Post Deposit 2000 Potential for a 5-10Moz deposit? Resource (koz) 500 0

13 Erlistoun syncline Lulu Fault Moolart Well Duketon Greenstone Belt Geology and Structure Garden Well Garden Well on eastern limb of Erlistoun Syncline Confluence of N-S and NNW- SSE faults Ultramafic and sediment host rocks

14 Mulga Queen Duketon Moolart Well Duketon Greenstone Belt Aeromagnetics First derivative Aeromagnetics Multiple controlling structures 25 km Rosemont Detail study area Erlistoun Garden Well Regional N-S trending sinistral strike slip fault NNW-SSE trending cross faults Gold Occurrences Gold Resources Located 35km S of Moolart Well

15 Garden Well Discovery History No historical gold 1890 s workings No drilling in 1990 s gold rush but close! Sep 2001 Moolart Well discovery 2006 start exploration for Moolart type undercover deposits November 2008: Ten Aircore holes drilled over Garden Well Test 8 to 75ppb gold lag soil anomaly Discovery November 2009: 18 further Aircore holes. GDAC002, 2.58g/t Au from 77m to 124m EOH

16 Garden Well Discovery Moolart, Garden Well Geochemistry σ' Moolart Well 603koz Au Pleco Moolart Well σ' 2km σ' Garden Well Garden Well 1,660koz Au σ' 2km

17 me me me mn Ultramafic Sediments Diorite Garden Well Discovery First Drilling Nov mN mn 8-75ppb Au soil anomaly on edge of palaeochannel 10 Aircore drill holes on mN Nov mn Tertiary Palaeochannel 3 to 7ppb Au Lag Soil mn O 1km 8 to 24ppb Au >25 ppb Au

18 Garden Well Discovery Nov 2009 Aircore Drilling 1km Discovery Aircore drill line Tertiary Palaeochannel Pre 2008 Historical Drilling Garden Well 1gm Au outline 3 to 7ppb Au Lag Soils 8 to 24ppb Au 25 to 74 ppb Au >74 ppb Au 0 1km 2km

19 Garden Well Discovery Nov 2009 Aircore Drilling Shear Zone Mixed Ultramafic/Sediment Package 1km Discovery Aircore drill line

20 Garden Well Discovery First Aircore Drilling Aircore holes 160m apart across 8 to 75ppb gold lag soil anomaly Narrow zones in weathered ultramafic under palaeochannel clay me 500 m RL Alluvial clays and sands me 160 metres me 3-8ppb Au lag Saprolite clays 450 m RL Saprock Untested Untested 450 m RL Sediment Diorite Garden Well mN Gold g/t Metres Gold Mineralised zone Ultramafic 400 m RL

21 Garden Well Discovery Nov 2009 Aircore Discovery Drilling 500mRL First holes 160m apart Saprolite and Saprock 450mRL 400mRL Ultramafic Garden Well mN Gold g/t Metres Gold Mineralised zone mE Open 50 metres mE Sheared Ultramafic & Sediment Sediment 350mRL

22 Garden Well Discovery Drilling GDAC084 GDAC085 First Aircore holes on Discovery Traverse mN View West from GDAC086 across Palaeochannel

23 Garden Well Discovery Post Discovery Drilling Nov 2009 to Mar 2013 drilling 240 Aircore holes for 21,656m 387 RC holes for 76,726m 108 diamond holes for 40,919m Total 139,300m in 28 months Resource 2.14 Moz Au and Reserve 1.66 Moz Au March 2011 Discovery Cost <$5 per resource ounce Deposit is open to the south. Drilling in progress

24 Garden Well Geology and Geochemistry mN Garden Well 1gm Au outline mN Non- BIF Magnetic Ultramafic Sediment Discovery drill line Magnetic Ultramafic mN Diorite mN Pre 2008 Historical Drilling 3 to 7ppb Au Lag Soils 8 to 24ppb Au 25 to 74 ppb Au >74 ppb Au >1 g/t Gold All Drilling 0.5 to 1.0 g/t Au 0.25 to 0.5 g/t Au 0.01 to 0.25 g/t Au <0.01 g/t Au

25 Garden Well Gold gram-metre drill intercepts: December 2011 BIF Gram Metre Au Plan Projection Higher Grade Shoots Open at Depth Three high grade shoots >80gm High grade shoots plunge SE Deposit open at south end Ultramafic Shale Open to South Shear Zone Mixed ultramafic/sediment under Palaeochannel

26 Garden Well Gold gram-metre drill intercepts: December 2011 Discovery Line Section mN

27 Garden Well Geology; Cross section mN Calcrete Lacustrine clays and gravel base 100m Oxidised Zone Kaolinite clays Shear zone 1 to 2% disseminated sulphides Carbonaceous black shale Minor 1-2% sulphides Talc-dolomite-chlorite No sulphides

28 Garden Well GDAC001 Oxide, Transition and Fresh Rock Zones Authigenic Pisoliths 80m 130m Fresh rock 130 to 133m Saprock 80 to 130m Saprolite Clays 35 to 80m Fresh Rock Zone Oxide Zone Transition Zone 35m 7m Lacustrine Clays 7 to 35m Calcrete 0 to 7m Tertiary Palaeochannel Cover

29 Garden Well Geology; First Aircore holes in 2008 Sheared altered ultramafic Quartz-dolomite fuchsitechlorite-pyrite alteration Black Carbonaceous shale LKAC085: 1.61 g/t Au from 72 to 80m and 2.22 g/t Au 96 to 106m EOH

30 Garden Well Geology Gold Grades GDAC005 79m GDAC005: 4.26g/t Au from 42 to 111m EOH including; 11.32g/t from 42m 3.85g/t from 63m 1.65g/t from 79m 2.95g/t from 94m Oxide Zone Transition Zone 2.95g/t from 94m 94m 1.65g/t from 79m 3.85g/t from 63m 11.32g/t from 42m EOH 111m 63m 42m Transition Zone Oxide Zone 36m 10 to 36m Lacustrine clays Tertiary Palaeochannel Cover 0 to 10m Calcrete Down Hole

31 Garden Well Geology Transition Zone: GDAC to 80m Black carbonaceous shale Sheared peridotite cb-si-fu-py 74 to 75m 0.002g/t Au 75 to 76m 0.001g/t Au 76 to 77m 0.003g/t Au 77 to 78m 36.2g/t Au 78 to 79m 4.03g/t Au 79 to 80m 5.04g/t Au

32 Garden Well Geology Visible Gold from RC Drilling Gold is coarse and easily panned from all zones Metallurgical recovery in all zones >92% Oxide Panned Gold Upper Saprolite Transition Panned Gold Lower Saprolite Hypogene Panned Gold Fresh Rock 500 microns 500 microns 500 microns

33 Garden Well Geology Visible Gold from RC Drilling Most gold associated with late stage quartz-carbonate veining 500 microns 500 microns Quartz Gold Gold Pyrite Quartz

34 Garden Well Geology Visible Gold from Diamond Core Gold Dolomite-chlorite-fuchsite-pyrite 500 microns Quartz-dolomite vein

35 Garden Well Geology Visible Gold from Diamond Core 2mm Quartz-dolomite vein Chlorite-fuchsitedolomite-pyrite

36 Garden Well Geology Oriented Core GDDD m Diamond Hole DD027 Dip 50 West. View North microns 60 to 075 Shear Fabric Gold Gold Chlorite-fuchsitedolomite-pyrite Quartz-Dolomite Visible Gold Pyrite

37 Garden Well Geology Oriented Core Ultramafic Ore Zone Hanging Wall Black Shale Mixed Shale Ultramafic Ore Zone Quartz dolomite clinochlore fuchsite pyrite alteration West East Ultramafic Ore Zone View North Shear Fabric 60 to 075 Foot Wall talccarbonate Ultramafic

38 Garden Well Geology GDDD001 at 148m Alteration Strongly sheared ultramafic with Quartz-dolomite-chloritefuchsite-pyrite alteration ( g/t Au)

39 GW Gold gram-metre drill intercepts: Results of Recent Drilling Nov 2011 Nov 2012 BIF mN mN 1.84 km 1.16km mN Southern Limit of Current Reserves Southern Limit of Current Reserves mN Ultramafic Shale Chert/shale host Section mN 680m Southern Limit of Drilling mN Open

40 Garden Well Cross Section mN October 2012

41 GW Long Section Nov 2012 Test South End Test High Grade Shoots U/G Potential?

42 Garden Well Geology Chert Shale BIF Ore Zone Hanging Wall BIF/Chert/Shale BIF/Chert pyrite altered Ore Zone Quartz carbonate pyrite alteration Si-cb-py West East Chert/BIF/Shale si-cb-py Ore Zone Foot Wall talc-carbonate Peridotite Ultramafic

43 Garden Well Geology Chert Shale BIF Ore Zone South of line mN gold mineralisation hosted by chert BIF and shale Strongly brecciated chert/shale with Quartz-carbonate-pyrite alteration

44 Garden Well Palaeochannel Geochemistry (Richard Carver) 3-8ppb Au lag 100m Au Ore

45 Garden Well Palaeochannel Geochemistry Cover Cover Gold ppb Zone Au Ore mN No anomalous Au in surface soil and lag sampling 8 75ppb Au on eastern palaeochannel margin Remobilised Au or truncated regional Au anomaly? Remobilised Au in Eocene palaeochannel clays up to 1g/t Au (Authigenic pisoliths) 500m Zone mN

46 Garden Well Palaeochannel Geochemistry Cover Cover Gold ppb mN Au Ore 8ppb Au lag mN 500m mN

47 13 to 24ppb Au Up to 120ppb in Acacia Aneura leaves Water Table 8 to 75 ppb Au anomaly Lateral remobilisation of Au in cover sequence over 100 s metres. Far greater than vertical remobilisation Top of Fresh Rock

48 Garden Well Gold Reserves Proposed 1.66 Moz Au Reserve Open Pit Leapfrog 0.3g/t Au shell Garden Well 3D View to NW

49 Garden Well Gold Reserves Production Discovery hole November 2009 Construction commenced June 2011 Production commenced late August 2012 Total production to end March ,157 oz Au

50 Garden Well Gold Production August 2012 to March 2013

51 Garden Well Camp August 2011

52 Garden Well Gold Mill September 2012

53 Garden Well Gold Mill September 2012

54 Garden Well Open Pit October 2012: View South Palaeochannel

55 First Gold Pour 4 September 2012

56 Conclusions What do we Know about Moolart Well and Garden Well? Both under palaeochannels Both on regional N-S shear zones Both on regional deflection in shear zone Both proximal to an ultramafic contact Neither deposit directly responds to soil or lag soil geochemistry Both have weak Au soil anomalies on margins of palaeochannels Model for Au in palaeochannel Truncated anomalies or leakage anomalies?

57 Is the Duketon Belt Mature? DGB has a history of 110+ years of gold exploration starting in 1896 All gold deposits that crop out have been found. Belt is mature for exposed deposits Most past exploration focused on exposed deposits Two largest deposits in the DGB found in the last 10 years under cover GW discovery to production < 3 years

58 Is the Duketon Belt Mature? Both deposits are Blind Virgin discoveries Resources both Deposits 4.36Moz Au Reserves both Deposits 2.26Moz Au+ Each Deposit basis of a New Gold Mill Significant potential for new under cover gold discoveries in DGB and other belts Application of geochemistry in exploration?

59 Thank You: Questions