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1 Exploration Update - Leonora Gold Project WA Bligh Resources Limited ABN ASX Release 18 January 2012 Suite 804 Level 8, 84 Pitt St Sydney New South Wales 2000 Tel: Fax: Contacts: Robert Benussi Bill Guy info@blighresources.com.au For the Latest News: Directors/Officers Robert Benussi Charles Guy Hanjing Xu Peiqi Zhang Liming Niu (Alternate Director for Mr Xu) Issued Capital: Shares: 57,475,720 Unlisted Opts: 16,000,000 (Escrowed) ASX Symbol: BGH Currently Exploring for: Manganese Gold Current Projects: Kumarina Bootu Creek Two Grenfell Manilla Leonora Manganese and gold exploration company Bligh Resources Limited (Bligh) (ASX: BGH) today announced an exploration update for the Leonora Gold Project. The Leonora Gold Project is divided into the Diorite King and Mount Davis prospects; both prospect areas are located 30 km north-northwest of Leonora (Figure1) and are predominantly within the Mount Clifford Greenstone Sequence of the eastern Goldfields. BM Geological Services Pty Ltd (BMGS) was engaged by Bligh to compile historical data, undertake field mapping and identify potential areas for further exploration. Using data from known proximal gold deposits, in particular the Tarmoola gold deposit, BMGS identified four main geological models for gold mineralisation within the Leonora project area. These geological models are presented below: 1. Early, now shear parallel, quartz veining associated with normal movement on the Raeside Batholith margin (Tower Hill, Harbour Lights). 2. Thrusting associated with NNW-trending lithological competency contrasts (D3, Tarmoola and Mt Davis). 3. ENE-trending competent lithologies intersecting with cross cutting WNW lineaments possibly leading to plunging shoots (Diorite King). 4. Hidden intrusive apophyses hosted mineralisation (requires more detailed gravity or pseudo gravity algorithms applied to 400m line spaced aero magnetics). Analysis of the historical data, mapping at 1:50,000 scale in conjunction with geological models generated 7 zones for further exploration at Diorite King and 4 zones at Mount Davis. Diorite King Zones (Figure 3a)-Zones 1 to 5 are targeting Tarmoola style gold mineralisation. The greenstones are folded about a moderate, north plunging anti-form and there is evidence of granitic magma focussed into the hinge region of the fold. Zones 6 and 7 are associated with the western Urus Shear zone and specifically target areas where granitoids (monzonite, granite and dacite) have intruded this structure. There are some lines of historical RAB holes in zones 6 and 7, but there is some doubt as to whether the structure has been fully tested. Mount Davis Zones (Figure 3b)- Zones 1 to 3 were mainly developed using the historical data base (soil sampling and drill results) together with the new geological mapping. The interpretation is complicated by the shedding of gold from historical mining affecting soil sampling results. Zone 1 is a northweststriking sheared zone of siliceous sediments, chert and interleaved mafic schist with elevated soil samples (peak ppb26 Au ). Zone 2, at the southern end of the Mount Davis prospect, is based on broad soil sampling anomalies (peak ppb100 Au) with three shallow RAB holes nearby that only went to a depth of 5m. Zone 3 is based on historical drill results from the five holes were drilled here, two of which intersected gold mineralisation (MRD031; 5.04 g/t Au and MDR033; 1.62 g/t Au). The historical database indicates that the 7 zones at Diorite King have been subjected to limited geochemical soil sampling. A field inspection of zones 1 to 7 has already been completed and all zones will require a geochemical sampling program to be upgrade to drilling status. During the field inspection two small gold nuggets were found near zone 3&5 (Figure 2). The zones at Mount Davis will be inspected this quarter. Bligh is currently awaiting a geophysical interpretation report and will finalise the next phase of exploration after a review of that report. Further information: Bill Guy: Managing Director- Exploration Released through Ben Jarvis, Six Degrees Investor Relations:
2 Competent Person- Charles W Guy The information in this announcement that relates to Exploration Results is based on information compiled by Mr Charles William Guy who is a Member of the Australian Institute of Geoscienctists. Charles William Guy has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that 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. Charles William Guy consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.charles William Guy is a full time employee of Bligh Resources Limited in the postion of Managing Director- Exploration. Figure 1 Leonora Gold Project Location Map
3 Gold nugget 1.7 gram near zone 5 Gold nugget 0.5 gram near zone 3 Figure2. Gold Nuggets 1.7 gram nugget from E, N and 0.5 gram nugget from E N MGA ZONE 51
4 Excised Figure3a. DIORITE KING SURFACE GEOLOGICAL MAPPING & EXPLORATION ZONES
5 Excised Figure3b. MT DAVIS SURFACE GEOLOGICAL MAPPING& EXPLORATION ZONES
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