ASX ANNOUNCEMENT ASX: IVG Date: 30 April 2012 Number: 030_300412 MARCH 2012 QUARTERLY REPORT SUMMARY Market Cap A$2.23m ($0.062 p/s) Issued Capital 36,006,006 Assay data and mineral alteration studies from the East and West Porphyry Prospects at Scartwater confirm the potential for a buried hydrothermal alteration system that requires further drilling. Intercepts of interest include: SCWRC5: 28 m at 0.11 g/t gold from 16 m and 32 m at 0.3 g/t silver from 46 m; and 6 m at 0.13 g/t gold from 74 m; and SCWRC6: 4 m at 0.13 g/t gold from 100 m and 16 m at 0.3 g/t silver from 98 m; Assays from the Whiteglow Prospect have identified thick intercepts, up to 48 m at 500 ppm zinc and 6 m at 2.4 g/t silver that are open to the east and at depth. A source for the coincident gold and silver soil anomaly may be present at depth along a structural contact; Results of 450 soil samples collected at the Retro Extended Prospect, Clermont have identified at least two significant targets: one area is 1,400 m long and has been previously drilled only over a 250 m strike extent (with significant intercepts that are open). The second area is 600 m long and has not been drilled; Directors Peter Unsworth Chairman Michael Jones Managing Director Michael Busbridge Technical Director Satellite spectral data over the Killarney Project has identified 20 priority targets with evidence for large alteration systems similar to those over major porphyry deposits around the world. Applications were lodged for three new exploration licences covering 900 sq km to cover targets identified in areas adjoining the project area; and Rodney Fripp Executive Director James Cooper-Jones Company Secretary INVICTUS GOLD LIMITED ACN 145 891 907 A compilation of previous exploration data at the Moly King Project has started. Cash Position: $1.0 million. www.invictusgold.com.au 309 Newcastle Street Northbridge Western Australia 6003 Tel +61 8 6454 6666 Fax +61 8 6454 6667 Email info@invictusgold.com.au
1. DRUMMOND BASIN PROJECTS Invictus Gold Limited owns 100% of a large tenement portfolio in the Drummond Basin in central Queensland, centred about 200 km south west of Townsville (Figure 1). The Drummond Basin is one of Australia s most prospective areas for World Class porphyry-hosted deposits of gold-silver, gold-copper and gold-copper-molybdenum and for large epithermal vein and stockwork-style deposits of gold and gold-silver-copper. Work during the Quarter focused on the Scartwater and Whiteglow areas near the Alliance Fault in the northern part of the project area, as well as on the Retro Extended Prospect near Clermont in the south (Figure 1). 1.1 The East Porphyry and West Porphyry Prospects, Scartwater On the basis of elevated gold-in-soil responses, high-grade rock chip assays of up to 32 g/t (1 ounce per tonne) and detailed field mapping, two porphyry bodies were discovered near Scartwater homestead in 2010 and maiden drill programmes completed in late 2011. The West Porphyry and East Porphyry Prospects are about 500 m apart and together comprise an area of about 1,200 m by 500 m in dimension (Figure 2). Two discrete gold-in-soil anomalies about 600 m by 250 m in dimension and more than 25 times background are centred over the porphyries. East Porphyry The drilling and mapping has shown that the East Porphyry is an elliptical body with a strike extent of 200 m and up to 100 m thick (Figure 2). The porphyry is intensely and widely altered to an assemblage of quartz, sericite-chlorite and calcite with disseminated pyrite. The best assay results on Traverse 6,665,520 mn across the centre of the East Porphyry are (Figure 3): SCWRC5: 28 m at 0.11 g/t gold from 16 m and 32 m at 0.3 g/t silver from 46 m; and 6 m at 0.13 g/t gold from 74 m; SCWRC6: 4 m at 0.13 g/t gold from 100 m and 16 m at 0.3 g/t silver from 98 m; These thick gold and silver intercepts are encouraging and occur within broader zones up to 100 m thick of anomalous arsenic, zinc and tellurium (Figures 3 and 4). The gold and silver assays increase significantly from the south to the centre of the porphyry and this is associated with an increase in the width and intensity of the associated alteration system. The mineralisation is open to the north, where the porphyry is in part coincident with a magnetic anomaly, as well as at depth (Figures 3 and 4). To the north, the porphyry is overlain by colluvial cover. West Porphyry The West Porphyry comprises multiple east-dipping dykes up to 10 m thick rather than one continuous unit. The dykes have the same intense alteration mineral assemblages and disseminated pyrite as the East Porphyry. The dykes are associated with anomalous arsenic (up to 4 m at 0.2%) and silver (up to 2 m at 1 g/t).
The five drill holes to the north of the West Porphyry intersected variably chlorite-carbonate altered sedimentary rocks. A significant assay of 2 m at 1.9 g/t from 8 m is present in SCWRC9. A source for the gold- and molybdenum-in-soil anomaly has not been found. Detailed Mineral Alteration Studies Detailed spectrometer studies of the alteration minerals from both porphyries have provided vectors to mineralisation, and indicate that the mineral assemblages are typical of the upper levels of a gold-mineralised porphyry system. It is possible that a significant buried hydrothermal system occurs beneath the 150 m depth limit of the maiden drill programme. In the East Porphyry especially, the increasing size and nature of the alteration with increasing depth is very encouraging and indicates a significant buried hydrothermal system (Figure 3). At other porphyry-related gold deposits in Queensland the economic mineralisation starts at depth below surface. For example at the Mount Wright deposit (about 100 km north of Scartwater) gold mineralisation greater than 1 g/t starts at about 150 m below surface. Detailed follow up ground magnetic and infill soil geochemistry surveys have been completed, following delays caused by extensive and heavy rainfall. The results are expected in May and these will be used to accurately position follow up diamond drilling. 1.2 The Whiteglow Prospect Invictus Gold s maiden drill programme at the Whiteglow Prospect comprised six RC holes on two traverses for 820 m to test a gold- and silver-in-soil anomaly that is 1,500 m long and up to 500 m wide, centred on an area of poor outcrop and colluvial cover. At the northern end of the soil anomaly a rock chip sample from a mineralized and altered porphyritic rock returned an assay of 7.3 g/t gold and 200 g/t silver. This northern area is close to three previous drill holes which returned intercepts of 34 m at 0.3 g/t gold from 24 m and 18 m at 23 g/t silver and 0.6% lead from 26 m (see the Invictus Prospectus on the website for further details). Logging of the drill chips shows that geology of the area comprises very steeply dipping sedimentary rocks that have been intruded by moderately east dipping porphyry dykes up to 50 m thick. All holes returned anomalous intercepts of silver and zinc. On the northern traverse (7,658,960 mn) anomalous intercepts occur in the weathered zone and increase in thickness and grade to the east. Best intercepts include 48 m at 500 ppm zinc, 6 m at 2.4 g/t silver and 4 m at 400 ppm lead, all from surface. The intercepts are open to the east. On the southern traverse (7,658,560 mn) anomalous intercepts of silver and zinc occur at the contacts between the porphyry units and sedimentary rocks. A source for the gold and silver-in-soil anomalies has not been found. However the soil anomaly is very large and only a small part has been tested. In addition, the intercepts of silver, zinc and lead increase to the east towards a fault splay from the main Alliance Fault. This has not been drilled. A review of the magnetic data suggests that the metasedimentary rocks are underlain by granitic rocks at depth. The contact between these two units may be prospective for mineralisation and may be a possible source of the surface geochemistry anomaly. Geophysical modelling of the magnetic data is in progress to estimate the depth to the contact.
Retro Extended Prospect, Clermont A comprehensive review of previous work at the Retro and Retro Extended Prospects is ongoing. These two prospects occur along the Retro Fault, a 10 km long north east trending fault defined by discontinuous outcrops of ferruginous breccia, vein quartz and minor thin felsic dykes (Figure 1). During the Quarter a soil geochemistry survey comprising 450 samples taken at 50 m intervals along lines 200 m apart and covering an area of 3 km by 1 km was completed over the Retro Extended Prospect. The results have identified at least two significant targets that require further work and which warrant drilling. In the central part of the Prospect previous drilling tested a quartz vein over a strike length of 250 m to a depth of 80 metres. Previous explorers drilled 27 shallow RC holes (1,639 m) over a strike length of 250 m to test surface rock chip samples of between 1.6 g/t and 10.8 g/t with the following intercepts of interest: 16 m at 8.5 g/t gold, including 8 m at 16 g/t gold, 143 g/t silver, 5.6% copper and 7.6% lead from 8 m depth; 6 m at 1.2 g/t gold from 26 m; and 12 m at 1.2 g/t gold from 10 metres. These drill intercepts are open along strike in both directions and down dip. The results of the soil geochemistry survey have extended this zone of interest to a total of 1,400 m along strike, with gold-in-soil responses of up to 160 times background, and a large part of this is coincident with chargeability and resistivity IP anomalies. At a locality 1.5 km north of Retro Extended a second anomaly 600 m long has been identified. This has gold-in-soil responses of up to 130 times background. This area has not been drilled. Further work, including diamond drilling, is being planned. 2. KILLARNEY PROJECT The Killarney Project is located 150 km east of the Drummond Basin Projects and covers the western margin of the Connors Arch, a magmatic and volcanic arc which is host to a number of major gold and base metals deposit including the Silver Hills high sulphidation gold-copper-silver deposit (>2 Moz gold equivalent) which is located in central Queensland and is currently in development, as well as the Mount Morgan deposit (>5 Moz). During the Quarter a detailed study of satellite spectral data was completed over the Killarney project area. This work identified major and significant mineral alteration halos similar to those associated with the upper parts of large intrusive granite complexes and porphyry copper-goldmolybdenum mineral belts, such as those in Chile, Indonesia and the Pacific Islands, and related to the "ring of fire". About 20 priority target areas have been defined for follow up work in the centre of the project area. Four of these occur in a WNW trending zone 20 km long and up to 5 km wide. They include the specific hydrothermal clay minerals sericite, kaolinite and chlorite, and possibly the sulphate mineral alunite. These alteration minerals are zoned, which enhances their prospectivity.
Some of the more significant targets are on ground that adjoins the Killarney Project and these areas have been secured with new applications for Exploration Licences that cover 900 square kilometres. This work has further demonstrated the prospectivity of the Killarney Project and confirmed the potential for it to host a World Class gold deposit. Follow up field checking of the priority targets is in progress together with a compilation of the surface and bedrock geology. 3. MOLY KING PROJECT The Moly King Project is located near the historical tin mining centre of Stanthorpe in south east Queensland and comprises 850 sq km of exploration licences. The project area covers the western margin of the New England Batholith and is prospective for Intrusion Related Gold Deposits (IRGD s) and associated molybdenum, tin and tungsten. During the Quarter a compilation of previous work was commenced. A significant amount of previous exploration data is available for the area, most of which pertains to exploration for tin and molybdenum. There has been no systematic synthesis and interpretation of this data. 4. CORPORATE The Company s cash position was $1.0 million at 31 March 2012. Dr Michael G Jones Managing Director The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a director of Invictus Gold Limited and a Member of the Australian Institute of Geoscientists. Dr Jones has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Figure 1. Geology of the Drummond Basin showing the location of Invictus Gold s tenements. The Scartwater Prospect is located on EPM14932 just west of the Alliance Fault.
Figure 2. Surface Geology Map of the East Porphyry showing the location of the drill holes and the extent of the alteration zone. The alteration zone is up to 100 m wide and is open to the north where the porphyry is coincident with a magnetic anomaly.
Figure 3. Cross-section of the East Porphyry along Traverse 7,665,520 mn. The alteration and anomalous gold, silver and other metal assays are strongest and greatest along the eastern contact. The alteration zone is up to 100 m wide and is open at depth.