Quarterly Activities Report Period Ending 31 December 2010

Transcription

1 Excelsior Gold Limited is a gold and uranium exploration company with a portfolio of exploration projects in Western Australia and the Northern Territory of Australia. The Company holds 100% interest in the gold mineral rights to an extensive package of tenements covering 98km 2 over the highly prospective Bardoc Tectonic Zone 45kms north of Kalgoorlie in Western Australia and interests in 3 uranium exploration projects in the Northern Territory. The Company s Kalgoorlie North Project contains JORC compliant Indicated and Inferred Resource of 11.65Mt at 1.48g/t Au for 553,700 ounces of contained gold (at 0.6g/t cut-off) and is the focus of the Company s exploration activity. The Allamber Uranium Project located in the Pine Creek Geosyncline, 175km southeast of Darwin hosts Inferred JORC compliant resources of 304ppm U3O8 containing 430 tonnes (960,000 lbs) of U3O8. in the Twin and Dam areas The Project is operated in joint venture with Thundelarra Exploration Ltd (ASX: THX) and the Company retains a 30% contributing interest. Uranium exploration projects in the Alice Springs and Tennant Creek areas of the Northern Territory cover extensive areas with potential for palaeochannel and sediment hosted uranium mineralisation. The Company is reviewing options for the future divestment of these non-core assets. admin@excelsiorgold.com.au Quarterly Activities Report Period Ending 31 December 2010 Overview ASX Code: EXG Excelsior Gold Limited conducted further drilling and resource development on the Kalgoorlie North Gold Project during the Quarter. Mineral Resources now total 553,700 ounces of contained gold from 1.48g/t Au at a 0.6g/t cut-off. Drilling on the Allamber Uranium Project in the Northern Territory by joint venture operator, Thundelarra Exploration Limited intersected significant uranium and copper mineralisation on new structural targets. Highlights North Kalgoorlie Project drilling at the Lochinvar and Western Lode targets on the Excelsior Shear Zone encountered strong mineralisation to support resource expansion and upgrade: -. Lochinvar g/t Au from 95 metres g/t Au from 110 metres g/t Au from 80 metres Western Shear g/t Au from 63 metres g/t Au from 73 metres Lochinvar Indicated and Inferred Resources upgraded (at 1.0g/t cut-off): g/t Au for 26,500ozs New Inferred Resources established on deposits south of the Excelsior Shear Castlereagh 2.3g/t Au for 8,400ozs Nerrin Nerrin 3.0g/t Au for 8,500ozs Drilling initiated at Castlereagh to upgrade resources. Allamber Uranium Project drilling intersected significant uranium and copper mineralisation, including: -. Lucas Prospect % Cu from 7 metres ppm U 3 O 8 from 37 metres Cliff South Prospect 9 440ppm U 3 O 8 from 43 metres and % Cu from 44 metres ppm U 3 O 8 from 76 metres

2 The Kalgoorlie North Gold Project (EXG 100% gold rights) The Kalgoorlie North Gold Project is located 45km north of Kalgoorlie in Western Australia and covers 98 km 2 of granted mining and prospecting leases over 25 kilometres of strike of the Bardoc Tectonic Zone. The tenements extend north from Norton Goldfields Limited s Paddington Gold Operations to the south of Aphrodite Gold Limited s Aphrodite Deposit. Historic gold production from the Bardoc Mining Centre in the central part of the tenements occurred from the underground Zoroastrian Mine in the late 1890s to early 1900s and from the Zoroastrian and Excelsior open pits mined by Aberfoyle Gold Pty between 1987 and Open pit production was 200,000 tonnes grading 2.47 g/t from the Zoroastrian Pit and 2,020,000 tonnes grading 1.5 g/t from the Excelsior Pit for a total of 2,220,000 tonnes at 1.6 g/t for 113,000ozs of gold. Previous exploration on the Project area has identified structurally and lithologically controlled gold mineralisation in numerous deposits and prospects associated with generally N to NNW trending shears and high grade cross cutting structures. Five main NNW trending shears are recognised within the tenements but during 2009 and 2010 the Company has primarily focused drilling programs on the Excelsior Shear. This is a major structure up to 80m wide and extending for over 6km within the tenements. The mineralised zone at the Excelsior deposit is 10 to 30m wide with high grade shoots plunging moderately to the south. During the December Quarter exploration on the Kalgoorlie North Gold Project returned significant drill intersections on the Excelsior Shear Zone and delineated additional resources on other major structures within the tenement. Results received from the recent drilling program at the Lochinvar and Western Lode targets on the Excelsior Shear Zone include: -. Lochinvar 3.59g/t Au from 95 metres 2.29g/t Au from 113 metres 4.78g/t Au from 110 metres 4.05g/t Au from 80 metres Western Shear 7.58g/t Au from 63 metres g/t Au from 73 metres Excelsior Gold has an ongoing program of prospect review. Resource modelling utilising the extensive historical drilling database is focussed on delineation of shallow resources amenable to open pit extraction and toll treatment. Review of more than 50 known prospects within the Kalgoorlie North tenements is progressing in order to prioritise drilling targets for campaigns in To date the Company has established resources in 14 locations within the tenements and has identified an additional 12 immediate resource targets for modelling and drill testing.

3 Resource modelling of historical drill data from areas to the south west of the Excelsior Shear deposit and has defined shallow oxide resources at Castlereagh and Nerrin Nerrin prospects which the Company will target with future drill programs. Total Project Resources have increased to: g/t containing 553,700ozs at a 0.6g/t lower cut-off, or 1.77g/t containing 463,100ozs at a 1.0g/t cut-off Indicated Resources Inferred Resources Total Resources Lower Cut-off 0.6g/t Cut-off g/t Cut-off Kalgoorlie North Gold Project Resource Summaries (December 2010) Indicated Resources 1.0g/t Cut-off Inferred Resources 1.0g/t Cut-off Total Resources 1.0g/t Cut-off Deposit Excelsior Lochinvar Three Star Ellen Pearce Zoroastrian Navan Jackorite Bulletin South North Talbot Castlereagh Nerrin Nerrin North Duke Eldorado Windanya TOTAL Kalgoorlie North Gold Project Resource Inventory (December 2010)

4 Kalgoorlie North Gold Project Tenements and Structural Targets Note: Mineral Resources derived from resource modelling conducted by Ravensgate Resource Consultants and Excelsior Gold Ltd in accordance with the JORC Code stated at a 0.6g/t lower cut-off grade

5 Excelsior Shear Drilling Campaigns The Excelsior Shear is a major NNW trending structure up to 80m wide and extending for over six kilometres within the tenements. The structure has recently been one of the Company s main resource definition targets. Drilling by Excelsior has delineated significant resource in the vicinity of the Excelsior deposit and the Company is now commencing to test other less well defined mineralisation along the Excelsior Shear Zone to the north of the main Excelsior resource. Drilling programs are aimed at definition of shallow oxide resources which offer potential for early mine development and possible toll treatment at near-by processing facilities. Resources delineated on the Excelsior Shear total 1.70g/t Au containing 251,500ozs of gold at a 1.0g/t cut-off, and the northern shear deposits at Lochinvar, Three Star and Ellen Pearce are currently being reviewed as potential sources of near term mineable shallow oxide resources. Excelsior Shear Indicated Resources 1.0g/t Cut-off Inferred Resources 1.0g/t Cut-off Total Resources 1.0g/t Cut-off Deposit Excelsior Lochinvar Three Star Ellen Pearce TOTAL Lochinvar Excelsior Shear Resource Inventory (December 2010) An initial program of reverse circulation drilling involving about 1,801 metres of drilling in 16 holes was completed in November to test extensions to the 440m long mineralised shear at Lochinvar and to verify intersections in historic drilling to support upgrading of the inferred resources. Significant mineralisation, including 3.59g/t Au from 95m in KNC10026, was intersected in the southern part of the resource area (holes KNC10025 to KNC10029). Positive results from the reverse circulation drilling program led to a significant increase (270%) and upgrade of the resource. Infill drilling was commenced in December to test further near surface mineralisation. The resource expansion at Lochinvar highlights the potential to increase resources in other areas such as Three Star and Ellen Pearce on the Excelsior Shear and in the newly defined resource areas at Castlereagh and Nerrin Nerrin on parallel shear structures 3.5km to the south.

6 Excelsior Shear Zone Resources and Exploration Targets Note: Mineral Resources outlined on the Excelsior Shear in this plan are derived from resource modeling conducted by Ravensgate Resource Consultants and Excelsior Gold utilising recent and historic drilling information. The Resources are combined Indicated and Inferred Resources in accordance with the JORC Code stated at a 1.0g/t lower cut-off grade.

7 Excelsior Western Shear Three drill holes were completed in November to test the Western Shear at shallow depths over a strike length of 100 metres immediately north of the Excelsior open pit. This zone was untested by historic drilling and high grade intersections returned from drilling in June 2010, including 16.96g/t from 47m depth in KNC10002 (335580mE, mN) and 3.85g/t from 25m in KNC10005 (335570mE, mN), indicated potential for shallow oxide resources. The preliminary drilling on this zone encountered narrow high grade mineralisation 7.58g/t Au from 63m) and a broad zone of mineralisation, 1.29g/t Au from 73m (incl. 3.9g/t from 81m) in hole KNC Narrow zones of low grade mineralisation in KNC g/t from 61m and 1.20g/t from 70m) were also intersected and further work is proposed to delineate the extent and orientation of the Western Shear in this area. HOLE NUMBER LOCHINVAR MGA94 Z51 EAST MGA94 Z51 NORTH AHD RL DIP AZIM LENGTH (m) RESULTS KNC g/t from 72m KNC g/t from 136m KNC g/t from 95m and 2.29g/t from 113m KNC g/t from 110m and 2.37g/t from 122m KNC g/t from 80m and 1.39g/t from 97m KNC g/t from 120m (incl. 1.51g/t from 121m) KNC g/t from 113m KNC g/t from 64m (incl. 2.97g/t from 67m) KNC No Significant Results KNC No Significant Results KNC g/t from 127m KNC No Significant Results KNC No Significant Results KNC No Significant Results KNC No Significant Results KNC No Significant Results WESTERN SHEAR KNC g/t from 63m and 1.29g/t from 73m KNC g/t from 61m and 1.20g/t from 70m KNC No Significant Results Excelsior North Drill Hole Summary November 2010 Drilling Program

8 Resource Definition Program The Kalgoorlie North Project covers 25 kilometres of strike of the prospective Bardoc Tectonic Zone which hosts widespread gold mineralisation on five major NNW trending shear structures within the Company s tenements. Resource modelling on the Castlereagh and Nerrin Nerrin areas to the south west of the Excelsior deposit has defined shallow oxide resources which the Company will target with future drill programs. Newly delineated Inferred Resources in the Castlereagh area at a 1.0g/t lower cut-off are: - Castlereagh Nerrin Nerrin 114, g/t Au for 8,400zs 88, g/t Au for 8,500ozs Castlereagh Mineralisation at Castlereagh is concentrated on a northerly trending sheared basaltultramafic contact over a strike length of 1.1 kilometres. North easterly cross cutting faults influence the distribution of mineralisation along the shear and the current resource was defined over the northern portion of the zone ( mN to mN) where two continuous lodes averaging 5m wide were modelled over 450m of strike to a depth of 50-60m. The southern portion of the mineralized zone which is not included in the resource, contains high grade (up to 28.8g/t Au) historical drill intercepts (refer Castlereagh Drill Section mN) which appear related to mineralisation on cross faults. Further drilling is warranted to determine the orientation and continuity of this mineralization. Kalgoorlie North Gold Project Castlereagh Drill Section mN

9 An initial program of 18 holes for 980 metres of reverse circulation drilling was completed on 20 December at the Castlereagh resource area to delineate extensions to the mineralisation and to upgrade the inferred resources. Results from this drilling program are expected in late January and will be incorporated into new resource models to facilitate mining studies. Northern Territory Projects CLEO S URANIUM PROJECT- ALLAMBER JOINT VENTURE (EXG 30%) The Allamber Project (ELs 24259, 25477, and 25479) is located within the eastern portion of the Pine Creek Orogen approximately 175km southeast of Darwin. The Project tenements cover 260km 2 over a granite and metasediment package that is prospective for structurally controlled uranium and base metal mineralisation. The Cleo s deposit (Twin and Dam resources) within EL hosts a near surface JORC compliant Inferred Resource totalling 304ppm U 3 O 8 containing 960,000lbs U 3 O 8 (at 100ppm cut-off). The Cleo s Project is subject to the Allamber Project Farmin and Joint Venture Heads of Agreement with Element 92 Pty Ltd, a wholly owned subsidiary of ASX listed Thundelarra Exploration Limited (ASX Code: THX). Thundelarra initiated reverse circulation drilling in November 2010 to test structural targets outside the known resource areas within EL A total of 18 RC holes for 1,667 metres were completed and significant uranium and copper mineralisation was intersected, including: -. Lucas Prospect 9.69% Cu from 7 to 23m depth (TAL024RC) 328ppm U 3 O 8 from 27 to 39m (TAL025RC) 405ppm U 3 O 8 (incl. 1,945ppm) from 37 to 48m and 353ppm U 3 O 8 (incl. 1,710ppm) from 87 to 99m (TAL035RC) Cliff South Prospect 440ppm U 3 O 8 (incl. 1,368ppm) from 43 to 52m depth and 2.45% Cu from 44 to 46m (TAL032RC) 610ppm U 3 O 8 (incl. 3,926ppm) from 76 to 91m; 436ppm U 3 O 8 (incl. 1,627ppm) from 108 to 116m, and 422ppm U 3 O 8 (incl. 1,076ppm) from 123 to 129m (TAL033RC) The Lucas Prospect occurs to the west of Twin Resource 316ppm U3O8 containing 585,000lbs U3O8 at a 100ppm cut-off) and uranium mineralisation and associated elevated copper levels appear to be controlled by north-easterly trending

10 structures and microgranitic dykes intruding the structures. Seven metres of malachite mineralisation were intersected in the oxidised zone of TAL024RC where a dyke intrudes the faulted contact between the Allamber Springs Granite to the west and metasediments to the east. Thundelarra completed one RC drill hole (TAL029RC) approximately 20m behind TAL024RC in order to test for primary sulphide mineralisation. Copper assay results for this hole and a number of other holes in the program are pending. At the Cliff South Prospect approximately 250m north of the Twin resource area, drilling was designed to test a north-south trending structure and north-easterly cross-cutting structures. A series of microgranite dykes and sulphidic sediments displaying chlorite alteration was intersected and two out of only three RC holes returned encouraging uranium and/or copper results. Drill hole locations and significant uranium and copper intercepts are illustrated on the following plan and all drilling results are tabulated below. Thundelarra Exploration November 2010 Drilling Campaign Result Summary Plan

11 Thundelarra considers the results from this limited drilling program to be particularly important because: - The broad uranium intercepts at the Cliff South prospect occur in an area largely untested by historical drilling and well away from the known uranium resources of Twin and Dam. Importantly, the uranium mineralisation intersected in the drilling does not have a surface radiometric response. The high grade uranium mineralisation appears to be associated with a north-east trending fractural system which was not targeted by historical drilling. These numerous north-east structures possibly also control the highest grade mineralisation within the known resources at Twin and Dam. The strong uranium-copper mineralisation discovered at both the Cliff South and Lucas prospects appears to be related to late stage granitic intrusions. This style of mineralisation has the potential to host a large tonnage uranium-copper resource and will be a target for exploration in (Refer to Thundelarra ASX announcement dated 6 December 2010) Excelsior believes that the exploration and development potential of the Allamber Project has been significantly enhanced by the discovery of these new uranium mineralised zones and the associated high grade copper mineralisation. HOLE NUMBER MGA94 Z53 EAST LUCAS PROSPECT MGA94 Z53 NORTH DIP AZIM RESULTS From To (m) Interval (m) U3O8 (ppm) Cu (%) Au (ppm) TAL018RC BLD BLD BLD BLD 12 TAL024RC TAL025RC incl , TAL026RC TAL035RC BLD BLD incl , incl , BLD = below detection limit Allamber Uranium Project Drill Hole Summary Lucas Prospect

12 HOLE NUMBER MGA94 Z53 EAST CLIFF SOUTH PROSPECT MGA94 Z53 NORTH DIP AZIM RESULTS From To (m) Interval (m) U3O8 (ppm) Cu (%) Au (ppm) TAL032RC incl incl , TAL033RC BLD incl , incl , incl , , TAL034RC BLD = below detection limit Allamber Uranium Project Drill Hole Summary Cliff South Prospect NATIVE GAP PROJECT (EXG 100%) The Native Gap Project (EL24287) is located 120 kilometres north of Alice Springs and covers a portion of the eastern end of the Ngalia Basin. NuPower Resources Limited expended in excess of $288,000 on exploration on the Project under the terms of the Native Gap Farm In and Joint Venture Agreement signed in November In July 2010 NuPower electing not to proceed with the Joint Venture due to exploration commitments elsewhere in the Northern Territory and Excelsior retained 100% interest in the Project. The Company is reviewing data from NuPower s extensive regional airborne electromagnetic survey which was flown in 2008 to delineate priority areas for further detailed exploration. The survey located a shallow trough with palaeochannel outflows to the east and west and a thickening sequence of Cainozoic sediments in the west of the Native Gap licence and two south flowing palaeochannels in the eastern part. Radiometrically anomalous granites in the west and water bore sampling in the northern and central tenement areas which returned high levels of uranium and fluorine indicate good source waters for the formation of secondary uranium in deeper parts of the Cainozoic sediments. Excelsior lodged an application for extension of term of the licence to enable the Company to test the existing targets on the tenement.

13 OTHER NORTHERN TERRITOTY PROJECTS (EXG 100%) In addition to the Allamber Joint Venture and wholly owned Native Gap tenements, Excelsior Gold holds one granted exploration licence, Allambi (EL25347) and one licence application covering a total of 719km 2 in the Alice Springs and Tennant Creek district of the Northern Territory. The Company s recent focus on gold exploration has resulted in a reduction in exposure to early stage uranium exploration projects and retention of projects with defined targets in active exploration environments. Exploration licences at Gaylad Creek (EL24249) and Palmer River (EL25594) have been surrendered. Excelsior is continuing to evaluate the potential of the uranium properties in the Northern Territory and avenues for the future divestment of these non-core assets. Corporate Activity 56,502,103 options exercisable at 37.5 cents each expired on 25 October Competent Persons Statement: Information in this document that relates to Mineral Resources, Exploration Targets and exploration results is based on information compiled by Mr David Hamlyn of Excelsior Gold Limited. Mr Hamlyn is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Hamlyn consents to the inclusion in the document of the information in the form and context in which it appears.