Tampia Gold Project

Location of Explaurum Limited Projects

Tampia Gold Project

Explaurum’s key asset is the 90% interest in the Tampia Gold Project, located approximately 300km east of Perth in the wheat belt of Western Australia. A 2012 JORC Inferred resource of 4.7 million tonnes (MT) grading 2.0g/t Au (cut) or 2.5g/t Au (uncut) containing 310,000 – 380,000 ounces of gold, including 1.6 MT at 3.4 g/t Au (cut) or 4.6g/t Au (uncut) containing 170,000 – 237,000 ounces gold announced in April 2015 (Table 1).

Notes:
  1. about 90% of the resource (at 0.7g/t) in the upper 100m and 73% in the upper 80m
  2. details of the estimation are set out in Appendix 1
  3. oxide Resources are not significant at about 15,000 ounces at a 0.7g/t cut off.

BHP Minerals (‘BHP’) discovered gold mineralisation at Tampia in 1987 from follow up of regional BLEG stream sampling program. BHP and subsequent owners in the 1990s established the following features of the mineralisation:

  • Gold mineralisation is high grade and near surface
  • The resource was well drilled in part to mostly shallow depth, but open in all directions and at depth.
  • The resource area has significant gaps in drilling. If infill drilling is successful, an increase in resources is anticipated.
  • There is significant potential for further discoveries within 10km radius with a number of strong geochemical and auger/RAB anomalies.
  • Tampia is located on private land close to sealed roads, power, water, accommodation, services and labour.
  • Tampia is located 135km by road from Westonia and about 185km by road from Southern Cross and Marvel Loch.

The property received only minor exploration attention from the mid-1990s until Explaurum acquired an 80% (now 90%) interest in April 2012. At that time, although the Project is located within an under-explored greenstone belt, technical aspects of the deposit such as geology, structure, controls on mineralisation and metallurgy were poorly understood, but what was known regarding the mineralisation (open-pittable resource with near surface, high grade mineralisation open in all directions) was highly attractive to the Company. Some of the notable previous drilling intercepts include 19m at 9.2g/t Au from 15m, 12m at 13.4g/t Au from 41m, 25m at 10.7g/t Au from 0m, 25m at 10.4g/t Au from 0m, 9m at 16.49g/t Au from 16m, 18m at 24.6g/t Au from 7m and 13m at 23.6g/t Au from 21m.
 
Since acquiring the Project in 2012, the Company has:

  • Established a 2012 JORC compliant Inferred Resource of 310,000oz gold at a grade of 2.0g/t Au (Table 1) based on previous drilling results;
  • Undertaken QAQC and infill drilling campaigns that increased the confidence in the Resource and the structural controls on the mineralisation;
  • Commenced regional exploration based on gravity survey data that has resulted in significant new drill intercepts and wide scale ; and
  • Undertaken a range of metallurgical, processing, mining, baseline environmental and groundwater studies with the aim of establishing a preferred development strategy

Notable historic drill intercepts included:

GR028 17m at 27.5g/t from 8m including 4m at 108.9g/t Au from 9m;
NRC4 11m at 28.1g/t from 21m including 5m at 57.7g/t Au from 25m;
GDH01 9m at 18.3g/t from 19m including 1m at 55.5g/t Au from 23m and 2m at 43.5g/t from 25m and a deeper intercept of 11m at 10.1g/t from 50m including 2m at 41.9g/t Au from 50m;
GR001 25m at 11.0g/t from 0m to the end of the hole including 8m at 29.3g/t Au rom 14m;
GR003 25m at 10.1g/t from 0m to the end of the hole including 3m at 52.7g/t Au from 19m;
NRC41 5m at 34.9g/t from 79m including 1m at 165g/t Au from 79m;
GDH09 29m at 5.9g/t from 35m including 1m at 154g/t from 59m;
NRC16 4m at 19.2g/t from 33m and 6m at 16.1g/t Au from 45m  including 1m at 64.0g/t Au from 49m;
GR026 9m at 16.5g/t from 16m including 4m at 32.5g/t Au from 19m;
GR411 31m at 3.9g/t Au from 64m;
NRC6 13m at 7.6g/t from 59m including 2m at 24.8g/t Au from 67m; and
NRC15 18m at 5.3g/t Au from 67m. 

In 2014 and early 2015, the Company completed 10 diamond drill holes (THDD001 – THDD0011 totalling 481.3m), with six holes targeting known mineralisation in the vicinity of the Gault resource. The diamond drilling confirmed the historic drilling and located two new deeper zones of mineralisation, but more importantly provide samples for metallurgical test work, which is now underway. As a precursor to the metallurgical test work program, 28 bottle roll leach test were completed on samples from the core, with 23 samples returning an average of 89% gold recovery and five samples averaging 47% recovery with an overall 82% weighted average recovery. This early result is a significant and positive development for the project.

The positive recoveries from the Bottle Roll results suggest that the near-surface northern portion of the Gault deposit has the potential for mining and toll treatment (“Toll Treatment option”) through a nearby treatment facility. Consequently, a 45 hole 2,798m RC drilling program on a 20m x 10m grid was completed in November 2015 to establish an initial Indicated resource that can be assessed for the Toll Treatment option.

The planning of the major resource drilling program at Tampia was completed during the March quarter. A total of 194 holes were planned for the resource drilling for a total of 26,200m and 100 holes were planned for exploration drilling to extend known mineralisation and test scattered mineralisation from pre-2014 drilling for a total of 14,020m. The total program comprises 294 holes for 40,020m, with the resource drilling program planned to be completed by June. A statistical review of current assay data, completed prior to drill planning, suggested that a 40mx40m grid could be used to define the JORC compliant 2012 Indicated resource at Tampia. This may result in the potential to classify some parts of the resource as Measured, especially in areas of higher density of post 2014 drilling like the Wanjalonar gold zone. The main aims of this major drilling program are:

  • To provide sufficient drill density coverage over the known resource area, which has more than doubled in area to 1000m x 750m, to calculate a 2012 JORC compliant Measured and Indicated resource.
  • To test and infill the new areas of gold mineralisation intersected by 2016 exploration drilling programs and their potential extensions, including the 300m long gravity trend extending to the south-east of the northern zone.
  • Test the geology and mineralisation potential of several new targets outside the main resource area and test any new targets discovered by the current airborne gravity survey.

The drilling program started in February after a delay due to unseasonal heavy rain, using two drill rigs on a continuous roster basis to accelerate delivery of results. The first drill holes were targeted to define the northern and southern boundaries of the resource area at Tampia. A total of 94 RC holes for 13,249m (to April 23) have been completed since then, from a total planned program of 26,200m, which has since been increased to 29,103m.

Results have been reported from 28 holes to date. A total of 19 of the 28 holes are mineralised, including significant intercepts of:

  • THRC115 9m at 1.43 g/t Au from 116m,
  • THRC115 9m at 2.46 g/t Au from 130m,
  • THRC124 5m at 2.26 g/t Au from 61m,
  • THRC125 3m at 1.90 g/t Au from 129m,
  • THRC128 8m at 6.47 g/t Au from 38m,
  • THRC130 4m at 3.30 g/t Au from 7m,
  • THRC130 5m at 15.58 g/t Au from 16m,
  • THRC130 4m at 3.68 g/t Au from 40m,
  • THRC130 6m at 3.85 g/t Au from 49m,
  • THRC134 4m at 2.42 g/t Au from 8m,
  • THRC136 1m at 6.60 g/t Au from 48m,
  • THRC138 3m at 1.84 g/t Au from 20m,
  • THRC140 7m at 17.55 g/t Au from 5m,
  • THRC140 13m at 3.24 g/t Au from 16m,
  • THRC140 2m at 2.23 g/t Au from 97m.

Results to date have exceeded expectations. Of the 28 holes with assays returned, 13 holes returned better results than predicted by the gold grade model, 13 holes returned results similar to the gold grade model and 2 holes were worse than predicted by the gold grade model.

THRC140 intersected a new zone of near surface high grade gold mineralisation on the southernmost line of the resource area, now called the Leicester gold zone, including 7m at 17.55 g/t Au from 5m and 13m at 3.24 g/t Au from 16m. Additional extensional drilling has been planned to close off this gold zone, which is a new zone of high grade near surface gold mineralisation not included in previous historic resource estimates.

Results from prior drilling include:

  • 7m at 10.11 g/t Au from 68m;
  • 6m at 6.89 g/t Au from 128m;
  • 3m at 3.71 g/t Au from 46m;
  • 4m at 4.90 g/t Au from 46m;
  • 5m at 7.62 g/t Au from 13m;
  • 10m at 2.24 g/t Au from 122m;
  • 6m at 3.67 g/t Au from 0m;
  • 4m at 2.92 g/t Au from 10m;
  • 5m at 4.32 g/t Au from 0m;
  • 12m at 3.01 g/t Au from 0m;
  • 3m at 4.04 g/t Au from 48m;
  • 3m at 3.73 g/t Au from 35m;
  • 4m at 13.12 g/t Au from 11m, and
  • 5m at 10.42 g/t Au from 50m
  • 16m at 4.58 g/t, including 8m at 7.24 g/t Au;
  • 5m at 19.09 g/t Au, including 3m at 30.79 g/t Au;
  • 11m at 2.89 g/t Au, including 6m at 4.48 g/t Au;
  • 4m at 11.69 g/t Au from 1m;
  • 4m at 5.78 g/t Au from 9m;
  • 12m at 3.22 g/t Au from 23m;
  • 10m at 2.26 g/t Au from 10m;
  • 13m at 2.06 g/t Au from 7m;
  • 8m at 10.02 g/t Au from 12m;
  • 15m at 6.13 g/t Au from 14m;
  • 20m at 2.15 g/t Au from 21m;
  • 7m at 30.08 g/t Au from 40m;
  • 14m at 5.17 g/t Au from 42m;
  • 3m at 8.23 g/t Au from 91m;
  • 2m at 26.72g/t Au from 2m; and
  • 14m at 8.75g/t Au from 51m.
  • 5m at 21.45 g/t Au from 12m, including 1m at 101.00 g/t Au from 16m
  • 8m at 6.10 g/t Au from 18m;
  • 5m at 6.44 g/t Au from 32m;
  • 10m at 9.36 g/t Au from 66m, including 2m at 39.07 g/t Au from 74m;
  • 6m at 9.48 g/t Au from 58m;
  • 11m at 2.15 g/t Au from 76m.

Scoping Study

Explaurum are pleased to advise it has completed a Scoping Study (“Study”) based on the Inferred mineral resource at its 90% owned Tampia Gold Project (“the Project”), located approximately 300km east of Perth in the wheat belt of Western Australia.

Explaurum was assisted by the following reputable industry consultant groups; Kenex Pty Ltd (3D geological modelling), Entech Pty Ltd (resource estimation and mining), Mintrex Pty Ltd (process flow sheet and plant design), ALS Metallurgy Pty Ltd (metallurgical test work), Mintap Services Pty Ltd (metallurgical program), Martinick Bosch Sell Pty Ltd (MBS Environmental) (baseline environmental, heritage) and Rockwater Pty Ltd (groundwater).

The results of the study were positive and importantly provides strong encouragement for the Company to commit to the next stage of its exploration and development program. 

Highlights

  •  The results of the Scoping Study are positive and provide confidence to advance the Project to the next level, with a significant program of infill, extension and exploration drilling to commence shortly.
  •  The results provide a clear direction for the Company to pursue as well as strongly favourable indications of the Project’s future potential.
  • A Pre-feasibility Study has also commenced and is due to be completed in late H2 2017 – which will deliver an updated mineral resource estimate.
  • The Study has highlighted the particular activities, required for planning purposes, to develop the Pre-feasibility program and budget, and to optimise both the mine and process design.
  • Near resource and regional exploration is at a very early stage - providing significant potential upside to the scale of the Project that will improve the positive findings from the Study.
  • The Study has also established a ‘checklist’ of criteria required to focus further exploration, metallurgy and mining studies required for development.
  • Immediate focus now is the undertaking of major exploration and drilling programs, scheduled to commence shortly, to unlock the significant upside potential of the known Gault deposit, which is open in all directions, and through regional exploration, of the Project.

Next Steps

There is approximately 15,975m of resource drilling left to be completed, which at current drilling rates should be finished by June. This will be followed immediately by resource estimation and the announcement of a new Tampia JORC 2012 compliant Indicated resource.

New gravity and soil geochemical data are currently being collected over regional target areas defined by the recent geological mapping program. Data have been collected to the west and north of the Tampia project area focussing on new mafic gneisses that appear geologically similar to the mafic gneiss that hosts gold mineralisation at Tampia. The data from these programs are currently being processed and analysed and the results of the gravity survey and the soil sampling in early and late May respectively.

Metallurgical test work is nearing completion and the results from this work are expected to be announced in early May.

Preparation for feasibility studies to follow the release of the new resource estimate are underway and these are expected to commence in June/July.

In addition, the exploration program over the next 12 months will include:

  • Completion of comprehensive metallurgical test work to optimise plant design (currently in progress),
  • Regional soil geochemistry to define near surface mineralisation along the greenstone trend,
  • Structural geology to interpret the regional structure and its controls on mineralisation,
  • Exploration drilling of gravity targets,
  • Major Infill and extension drilling program to upgrade the Gault resource area to feasibility standards,
  • Characterisation of waste and tailings material required for development approval,
  • Airborne gravity survey of the Company’s tenements to assist mapping of mafic gneiss (completed). 
  • Ongoing feasibility study program to be completed H2 2017.

June Quarter Plans

Drilling in early February 2017, with an aggressive program of exploration and infill drilling that will lead into a new resource estimate for the project:

  • The major resource drilling program will continue throughout the quarter and is expected to be completed in late June.
  • Soil geochemical program to define near surface mineralisation along the greenstone trend will be completed.
  • Final interpretation and targeting of detailed airborne gravity data will be completed.
  • Further exploration drilling (outside of targeted resource area) will commence once the new soil and gravity data have been collected and interpreted.
  • Complete comprehensive metallurigical test work to optimise plant design.
  • Start perparations for resource estimation and feasibility studies.


Regional map of the location of the main resource area (Gaults) at Tampia in relation to current tenements, drill collars, magnetic data and gold soil anomalies.


Drill plan of exploration RC holes showing historic resouce areas compared to target resource area. The target resource area will be the subject of the planned infill drilling program starting late January.