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Work Program

Exploration

Exploration diamond drilling is currently underway at the Cameron Gold Project as part of a major campaign to advance the project into production. More than 20,000 metres of diamond drilling is budgeted to be completed over the coming months.

 

Diamond Drilling Rig at the Cameron Gold Deposit, June 2010

 

Existing infrastructure at the project campsite has recently been refurbished and additional facilities are currently being constructed to cater and support the Company’s upcoming extensive work programs. Despite previous operators completing extensive surface and underground diamond drilling at the project, the mineralisation at the Cameron Gold Deposit remains open along strike to southeast (9.2m@ 8.39 g/t gold from 199.9m), northwest (8.1m @ 2.52 g/t gold from 13.9m) and at depth (3.1m @ 10.95 g/t gold from 779.4m).

Twelve other prospects and occurrences are known within the ~3,000 hectare project area, where essentially no exploration has been undertaken since the late 1980s.

 

Cameron Long Section facing southwest with targeted areas of significant shallow open intercepts requiring follow up.
Note well-defined northwest-plunge control of mineralisation and high-grade zones. (Red > 5.0 g/t gold ;
* - denotes off section. Model by Leapfrog ™ Software.

 

The Company believes there is considerable potential to substantially expand the resource base in the medium term. The Company is equally focused on bringing known resources into production in the near term. With these targets, the objectives of the current drilling program are to:

• Convert resources within the current conceptual open pit and underground mine models to reserves;
• Extend the known limits of the mineralisation at the Cameron Deposit, which remains open along strike in both directions and at depth;
• Evaluate the considerable exploration upside of the project; and
• Acquire additional metallurgical, geotechnical and hydrological data so that feasibility studies on the project can be completed.

Much of the planned drilling will evaluate shallow mineralisation that is potentially amenable to open pit mining, as preliminary studies have indicated that very robust economics can be achieved at the project with open pit mining.

In addition to the drilling underway, the Company plans to relog and where appropriate, resample much of the available historic drillcore stored on the property. Due diligence work has ascertained that the sampling conducted on much of the drilling completed in the early part of the project concentrated on the central quartz vein component on the mineralisation, rather than then entire alteration envelope that flanks such veins. Due to the excellent preservation of the available historic drillcore, it is anticipated that such work will add additional ounces to the resource inventory at a very economical cost.

Analytical results for the drilling and resampling will regularly follow over the ensuing 3-4 months as the drilling program is completed.

As much of the work at the Cameron Gold Project was conducted during the mid-1980’s, some data such as airborne and ground geophysics is now obsolete due to the significant advances in acquisition, computing processing and locational (GPS) technologies. As part of the exploration to be completed over the coming months, the Company plans to conduct extensive Inducted Polarisation (IP) and airborne magnetic surveys. These surveys will enable the structural architecture of the project and chargeable, potentially-mineralised bodies to be delineated and targeted so that the next Cameron Gold Deposit can be discovered.

A project-wide geochemical survey is also planned in order to detect bedrock gold anomalies that are concealed by the blanket of glacial sediments and till that covers much of the property. Orientation sampling is planned to be completed over the known Cameron mineralisation so to determine the optimum sampling technique and assaying method.

Compilation of the extensive historic data which formed part of the acquisition is also underway. This data includes extensive and detailed underground mapping and sampling of the Cameron Gold Deposit itself, through to extensive regional exploration programs involving the drilling of other prospects (such as the Victor and Monte Cristo prospects), and extensive overburden RC geochemical drilling.

Significant regional anomalism and mineralisation to be followed up, with 12 known gold prospects with the project area, including drill intercepts at Victor including drill intercepts at Victor (13.0m @ 10.33 g/t gold from 175.3m), Monte Cristo (14.6m @ 5.22 g/t gold from 102.1m) and the Burke Prospects (3.5m @ 13.72 g/t gold from 17.2m, and 0.7m @ 107.38 g/t Au from 98.5m). Resources which are non-JORC compliant have previously calculated for the Victor and Monte Cristo Prospects.

Compilation of the historic exploration data, as well as the addition of new geological, geophysical and geochemical datasets will result in a range of further targets for exploration, both near and within the Cameron Gold Deposit itself, as well as within the overall project area.

The Company is very confident that significant additional gold resources will able to be added to the current resource base for the Cameron Gold Project.