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. 

Scoping Study

Explaurum 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.

Exploration Highlights for the period ended 30 June 2017

  • Highest grade gold mineralisation intersected to date, with gold grades up to 185 g/t Au intersected in the south of the Tampia resource area (Leicester gold zone) and 155 g/t Au in the centre of the Tampia resource area (Merino gold zone);
  • Assay results to date suggest a fourfold increase in size in the Leicester gold zone and a threefold increase in the Wanjalonar gold zone;
  • High grade results received from the Leicester (southern) gold zone up to 185 g/t Au and 126 g/t Au including significant intercepts of:            
    • THRC147 8m at 4.99 g/t Au from 4m (incl. 1m at 37.00 g/t from 4m),
    • THRC158 1m at 63.50 g/t Au from 4m,
    • THRC158 4m at 9.43 g/t Au from 55m,
    • THRC165 11m at 2.42 g/t Au from 49m,
    • THRC168 3m at 68.47 g/t Au from 45m (incl. 1m at 185.00 g/t from 45m),
    • THRC157 7m at 20.55 g/t Au from 135m (incl. 1m at 126.00 g/t from 135m),
    • THRC177 6m at 5.30 g/t Au from 63m (incl. 1m at 27.20 g/t from 63m),
    • THRC178 11m at 4.84 g/t Au from 67m (incl. 2m at 12.18 g/t from 67m);
    • THRC180 4m at 8.89 g/t Au from 5m (incl. 1m at 26.50 g/t from 6m);
    • THRC187 10m at 5.32 g/t Au from 86m and
    • THRC193 7m at 5.82 g/t Au from 112m.
  • Gold mineralisation confirmed to continue for 200m down dip of the northern (Wanjalonar) high grade gold zone, with results including:
    • THRC196 3m at 12.65 g/t Au from 57m (incl. 1m at 35.70 g/t from 58m),
    • THRC228 12m at 2.70 g/t Au from 98m,
    • THRC254 19m at 2.69 g/t Au from 46m,
    • THRC265 17m at 1.93 g/t Au from 53m and
    • THRC269 11m at 4.54 g/t Au from 82m.
  • Shallow high-grade gold mineralisation up to 155 g/t Au intersected in the Merino gold zone, confirming the stacked ore shoot geometry is consistent along the 900m strike of the Tampia gold deposit, with results including:
    • THRC272 2m at 78.24 g/t Au from 9m, (incl. 1m at 155.00 g/t Au from 9m),
    • THRC277 7m at 3.44 g/t Au from 0m,
    • THRC282 11m at 2.10 g/t Au from 89m,
    • THRC285 5m at 3.72 g/t Au from 39m,
    • THRC285 5m at 3.76 g/t Au from 112m,
  • Excellent continuity (and therefore predictability) of high grade mineralisation has been a feature of drilling to date in both the Leicester and Wanjalonar gold zones, with additional high-grade gold mineralisation continuing to be intersected in both zones;
  • 229 RC holes have been completed for 30,033m to the end of the quarter. The assay results reported are in addition to the holes reported in the previous quarter.
  • Drilling of the remaining Resource program holes and the announcement of a new Tampia JORC 2012 compliant Indicated resource will be completed in the September quarter.
  • Airborne gravity and magnetic survey completed over 400km2 surrounding Tampia Gold Project;
  • Three major new targets and 21 other exploration targets discovered based on similar geophysical signature and data resolution to the Tampia resource area;
  • A detailed geological interpretation of the surveyed area has identified new greenstone belts with similar features to the known Tampia mineralisation;
  • Eleven of the new targets have recorded anomalous gold in soil (+10ppb). Five of the new targets have had some previous RAB drilling completed, two of which returned anomalous gold of 2.6 g/t Au and 27.5 g/t Au;
  • Metallurgical program has increased the Company’s overall gold recovery target for the Tampia deposit to 92% - 95%, significantly up from the target estimate of 85% previously reported.
  • Program confirmed that mineralisation is predominantly free milling (non-refractory).
  • Definitive test work to be undertaken as part of the feasibility study to finalise the optimum process that delivers maximum gold recovery at the most effective capital and operating costs.

September Quarter Plans

  • The major 36,000m/300 drill hole resource drilling program will be completed during the quarter.
  • Further exploration drilling (outside of targeted resource area) will commence once the new soil and gravity data have been interpreted.
  • Complete metallurgical variability test work to optimise plant design.
  • Complete resource estimation studies.
  • Continue the feasibility study program due for completion in late 2017.

Next Steps

Now that the resource drilling is complete work will focus on 3D geological and structural modelling to develop constraining domains for the resource estimation. The final assay results from the remaining holes will be assayed during this time and are expected to be available for reporting by mid-August.

The 3D modelling and assay results will then be compiled and final QAQC of the assay data, geostatistical analysis and resource estimation is expected to be completed by the end of August, with the new resource estimate planned to be released in the first week of September. An update of the scoping study financial results based on the new resource estimate, including new optimisations and a preliminary mine schedule, will then be completed for announcement in early October.

Work planning to develop tasks, timelines and actions for the Feasibility study has started, including discussions with relevant consultancy groups for metallurgical, process design, mining, environmental and hydrological studies.

The soil geochemical data collected over regional target areas defined by the recent geological mapping and gravity programs remains under review. The results from the soil sampling program will be available by mid-September 2017 once the resource estimation work is completed.

Bottle roll test work to determine the indicative gold recovery on mineralised intervals from the Leicester zone is in progress and should be available by the end of September.

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

  • Completion of comprehensive metallurgical test work to optimise plant design,
  • 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. 
  • Ongoing feasibility study program to be completed H2 2017.


Drill plan of current resource RC drill holes and gold zones (Farm building to east of resource area derelict and unoccupied). 

 Cross section through the Wanjalonar gold zone showing dip extension to gold mineralisation 

Cross section through the Leicester gold zone showing near surface high grade gold mineralisation

 

Long section from the Wanjalonar gold zone through to the Leicester gold zone in the south, showing overall structure of the gold zones in relation to geology

 

3D Grade shells modelled in Leapfrog defining an open fold that dips and plunges to the south east 

 

Processed regional gravity data showing gravity target areas with similar gravity data values to the Tampia gold resource area

Gold nuggets panned from the 1m at 716 g/t Au intersection in THRC344