Klondyke/Seven Hills Overview
The Klondyke/Seven Hills Gold Project is located 40km north-east of Glen Innes, NSW and only 30km from the Company's Kingsgate Molybdenum Project.
Key Points
- Results from an initial scout drill program using a blast hole rig (similar to RAB drilling) returned significant gold assays, including 13m @ 8.5 g/t gold from surface. The brief drill program was designed to test anomalies identified from previous surface sampling and help identify targets for RC drilling. Two separate RC programs have been subsequently completed to test for continuity of mineralisation at depth with mixed results.
- A twin RC hole designed to test the initial RAB assay of 13m @ 8.5g/t gold produced a result of only 11m @ 1.23g/t gold. Evidence of coarse gold was the cause of poor repeatability of previous RAB results. Also, new interpretation suggests near-surface supergene enrichment from 0-20m and zones of gold depletion between 20-55m.
- Assay results from the second phase of RC drilling in April 2007 included a best intersection of 8m @ 2.8g/t gold and represented the first fresh mineralisation intersected within the prospect area, where deep weathering typically extends below 40m depth.
Background
Located 40km north-east of Glen Innes (NSW), Seven Hills was initially identified as prospective for gold by the Company’s prospectivity modelling in the New England region. No records of historical workings are known for this area. Fieldwork in late 2005 was encouraging with rock chip samples assaying up to 2.5 g/t gold. In August 2006, soil sampling and mapping then defined anomalous gold in soils within a 3,500m long by 1,500m wide area of interest. The soil anomalies are typically in the range 100-600ppb gold, up to 2 g/t gold. Anomalous rock chip assays from within this zone have recorded values up to 24.4 g/t gold from limonite rich greisen altered granite sub-crop.
Hand auger sampling and trenching were also carried out in late 2006 returning similar gold values to the soil and rock chip sampling. Deep weathering (+20m) caused results of these programs to be sporadic and inconclusive.
Mineralisation at Seven Hills is hosted by the same granite as the Company’s Kingsgate molybdenum project, located 30km to the south.
Exploration results
In late 2006, Auzex could not secure an appropriate RC drill rig to complete an initial scout drill program at Seven Hills. Consequently, it was decided to carry out a short RAB drilling program using a blast hole rig. This drill rig only allows open hole sampling (where ground conditions allow) to a maximum depth of 21m.
The aim of the 28 hole (313m) RAB program was to test four areas with rock, soil or auger gold anomalies for bedrock gold mineralisation in the 3.5 km by 1.5 km target area reported previously. The best intersections included 13m @ 8.6 g/t Au and 14m @ 1.3 g/t Au.
Subsequent RC programs designed to test continuity and depth potential of the mineralisation provided mixed results. Best results from RC drilling included 8m @ 2.7g/t Au from 3m and 8m @ 2.8g/t Au from 50m. Evidence of coarse gold caused poor repeatability of previous high grade RAB results. Interpretation of all data suggests near-surface enrichment from 0-20m and zones of gold depletion between 20-55m. RC drill results, in general, lack continuity however it is important to note that the second program intersected fresh mineralisation in an area where weathering typically extends below 40m depth.
Induced Polarisation (IP) geophysics was completed over 6.65 line kilometres between RC programs, however drill holes targeting geophysical targets yielded poor results. Drilling based on geology and geochemistry generated better results with a further sixteen geochemical anomalies yet to be tested. Detailed mapping and 3D modelling of the prospect area is required before the next round of drilling.
