ASX Announcement 28 January 2010 Drill results indicate large Porphyry Copper Gold System at Peenam Highlights: 270 metres of visible copper (gold) mineralisation in first diamond core hole at Peenam Prospect near Goomeri, south east Queensland. Interpretation of results of geochemistry and of detailed magnetic imagery suggests current drilling is located on the northern edge of a large porphyry copper gold system. A new D Aguilar subsidiary, Barlyne Mining Pty Ltd has been formed to focus on exploration and development of new porphyry copper/molybdenum/gold deposits in Qld. Barlyne Mining has lodged applications for a larger exploration tenement surrounding Peenam prospect and around the historic Yorkeys Calgoa and Colo Gold fields in South east Queensland. D Aguilar is transferring the Peenam and Gayndah Project exploration areas (Oaky Creek and other Prospects) in to Barlyne. Barlyne is lodging additional applications for exploration permits over prospective porphyry copper/molybdenum/gold targets. Figure 1: Location of Peenam Prospect, EPM 13361, and other Barlyne Prospects.
The Directors of D Aguilar Gold Limited (ASX Code: DGR) advise that the assay results have now been received for the first diamond core hole drilled on the Peenam Prospect within EPM 13361 (refer location map Figure 1). The presence of strongly anomalous copper gold mineralisation to the end of the hole and its location on the southern edge of a magnetic high feature evident on detailed airborne magnetic imagery suggests the hole was drilled on the edge of a large porphyry copper gold system. EPM 13361, situated south east of the town of Goomeri in Southern Qld, has been previously considered by D Aguilar to contain a porphyry copper gold target at Peenam. Earlier soil and stream sediment sampling provided encouragement for the recent drilling program. Rock chip samples on an exposed stockwork on a creek bank assayed 3.05 g/t Au, and mapping indicated that the porphyry style mineralisation is mostly concealed and only exposed only in the topographically lowest areas, notably in stream beds. As previously announced, three shallow reverse circulation holes were then drilled in 2006 (see Figure 2), with the best assay from 16 64m (48m) at 0.23 g/t Gold (Au), and 0.22% Copper (Cu). In 2007 D Aguilar conducted a detailed helicopter borne electromagnetic and magnetic survey (VTEM) on EPM 13361 to assist in the mapping of the Peenam area. In late 2009, the Company drilled an inclined diamond core drillhole (PEED1) to 288 metres to test the outcropping copper mineralisation. Assays have been received for the top 198m of this hole, demonstrating a grade of 800 ppm Cu overall. Gold grades are less than 0.1 g/t overall. Finely disseminated pyrite and minor chalcopyrite was noted from the base of oxidation at 18 metres until the end of the hole at 287.8 metres. The main copper gold mineralisation was within a quartz chalcopyrite magnetite vein phase that overprinted the pyritic disseminations over the entire length of the hole (see Figure 3). The widespread potassic and chloritic alteration, visible copper minerals and associated vuggy anhydrite fractures, indicated that the hole was drilled within a large poorly exposed porphyry copper gold system. The high pyrite to chalcopyrite ratio, the lack of intrusive rocks, and the distribution of more volatile and distal peripheral element assemblages (arsenic antimony lead and zinc) suggest that the Hole PEED1 was drilled into the edge of a porphyry system, in an outer alteration zone which would not be expected to host ore grade copper gold mineralisation. As shown in Figures 4 and 5, a review of the geophysical and geochemical data has highlighted a 6km x 500m combined magnetic and airborne electromagnetic anomaly centred about 1km to the southwest. The magnetic anomaly has associated low level gold anomalism within flat lying andesite volcanics, and is surrounded by soil anomalies of elements that are peripheral to porphyry copper gold deposits.
Figure 2: Peenam drilling on magnetic imagery (see Fig 4 & 5 for location on larger scale). Figure 3: Top view quartz pyrite (yellow) chalcopyrite (green) magnetite (black) vein 149m PEED1. The magnetite association implies that the best mineralisation will lie within magnetic anomalies.
Figure 4: Location of area drilled showing larger scale gold and geophysical targets. Note that the gold copper anomalism is strong in topographically low areas around streams. Figure 5: Peripheral element anomalism highlights the geophysical anomaly as the centre of the gold copper porphyry system.
Following consideration of the exploration results from the Peenam Prospect and the Oaky Creek Prospect south of Gayndah, D Aguilar has formed a new subsidiary to specifically focus on the identification and development of large porphyry copper gold systems in Qld. Porphyry copper gold systems are typically very large and low grade, and occur in distinctly different geological settings to the sediment hosted Carlin Style gold exploration to be undertaken by D Aguilar subsidiary Navaho Gold Pty Ltd in northern Qld. D Aguilar is in the process of transferring the Peenam and Gayndah exploration permits in to Barlyne Mining Pty Ltd, and Barlyne has applied for a larger exploration tenement surrounding the Peenam EPM. The Oaky Creek prospect near Gayndah (refer Figure 6) is an outstanding porphyry copper gold prospect, situated within the centre of a well preserved Triassic volcano, and as previously announced the first diamond core hole into a large diatreme (breccia pipe) revealed continual mineralisation from surface to the end of hole (500m). Figures 7 10 show representative core samples from the Oaky Creek breccia. The mineralisation was intensely clay altered and silicified volcanic rocks with strong zinc and lead anomalism. This is typical of that encountered above a porphyry copper system which has yet to be tested by a deep diamond drill hole. D Aguilar geoscientists seconded to Barlyne Mining have identified other prospective targets based on a comprehensive geological, geophysical and geochemical database assembled by the company over the past five years, and further applications for exploration permits at Colo and Yorkeys / Calgoa have been lodged with the Queensland Mines Department. On behalf of the Board K M Schlobohm Company Secretary Competent Persons Statement The information herein that relates to Exploration Results is based on information compiled by Nicholas Mather B.Sc (Hons) Geol., who is a Member of The Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Holdings Pty Ltd which provides certain consultancy services including the provision of Mr Mather as the Managing Director of D Aguilar Gold Ltd (and a director of D Aguilar Gold Ltd s subsidiaries). Mr Mather has more than five years experience which is relevant to the style of mineralisation and type of deposit being reported 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, Minerals Resources and Ore Reserves (the JORC Code). This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears. For further information contact: Mr Nicholas Mather Managing Director D Aguilar Gold Limited Ph: 07 3303 0680 or 0417 880 448 Email: info@daguilar.com.au Electronic copies and more information are available on the Company website: www.daguilar.com.au
Figure 6: Location of Diamond Core Hole BARD 1 and earlier RC Drill Holes BAR 1 3 on simplified geology at the Oaky Creek Prospect, Gayndah Project Area The following three photographs Figures 7 9 illustrate some of the multiple stage sulphide mineralization intercepted over the 500 metre Diamond Drill Hole BARD 1 at Gayndah Figure 7: Fine dark sulphides and fine white epithermal veining 95 170 m
Figure 8: Early dark sphalerite veins broken into fragments in pyritic breccia 269 m Figure 9: Late vuggy galena sphalerite pyrite veins 200m 500m