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Mining projects in Australia

Eastern Goldfields Overview

Anglo Australian Resources NL has a number of quality projects located in the premier mining district of the Eastern Goldfields which have potential for gold and nickel mineralisation. The key projects in the district is Mandilla.
At Mandilla near surface palaeochannel gold mineralisation was mined in the past by Anglo Australian Resources producing 20,619oz Au. A current Inferred resources of 357,000 tonnes at 3.3 g/t Au for 38,000 ounces has been outlined within a granite host rock at Mandilla East. Numerous high grade bedrock intersections testify to the bedrock potential of the project and aircore drilling has identified three targets to the southeast of Mandilla open pit for reverse circulation percussion drilling. As well a 700 metres long soil anomaly containing several greater than 50 parts per billion gold presents a target for Rotary Air Blast/ Aircore drilling.

Mandilla

Anglo Australian - 100% interest 
 
The Mandilla Gold Project, located 70km south of Kalgoorlie and 20km south east of Kambalda, comprises two mining leases covering 1819.2 ha. Geology in the project area consists of a sequence of mafic and ultramafic rocks in contact with felsic volcaniclastic and sedimentary rocks of the Mandilla Formation. The sedimentary sequence is intruded by the Emu Rocks Granite (a high level stock of porphyritic monzogranite). The western contact of the granite is faulted by an interpreted southern extension of a splay fault off the Zuleika Shear Zone, which hosts 1 million ounce deposits at Raleigh (Kundana) and Mt Marion (Ghost Crab). 
 
A number of gold intersections in rotary air blast (RAB) and aircore (AC) drill holes previously completed by Anglo Australian contain anomalous gold zones open along strike and down dip. Three drill target areas south east from Mandilla East Gold resource require further evaluation. All these targets lie on or proximal to parallel North West trending regional structures near or on the contact between felsic volcaniclastic sedimentary rocks and demagnetised granitoid rocks.  
 
Transported cover has masked any geochemical response in the surface soil sampling. Relatively shallow (< 55 metres) aircore drilling at a spacing of 400 x 40 metre centres returned a number of gold intersections at the bottom of holes. All holes terminated at blade refusal near the base of oxidation. Six RC drill holes and 22 rotary airblast or aircore holes are planned to test the three prospective areas at Mandilla Southeast.  
 
At West Mandilla, the target area is defined by a 700 metre long soil anomaly defined by a > 20ppb gold contour. Within the >20 ppb gold contour there are four discrete bullseye soil highs defined by a >50 ppb contour. A traverse of RC holes, drilled across the central part of the soil anomaly, did not target the peak soil values and intersected only low grade gold mineralisation with a best value of 2 metres at 1.45 g/t Au from 63 metres depth downhole. The zone, open to the northwest and southeast, lies within the northwest-southeast striking regional fault corridor.  
 
Proposed RC Drilling locations - RC/DIAMOND DRILLING PROGRAMME

Feysville

Anglo Australian - 100 % interest
The Feysville Project is located in Australia’s premier gold belt, just 14km south of the giant Golden Mile deposit (70Moz) at Kalgoorlie. The belt extends for some 100km along a NNW strike, and takes in major gold deposits at New Celebration (3Moz), some 10km south of Feysville, and the large St Ives field (+15Moz) 30-60km to the south. Numerous other economic gold deposits have also been discovered.

Gold deposits are contained within a major structural corridor centred on the Boulder Lefroy fault, which controls regional uplift and folding of a lower sequence of mafic-ultramafic rocks (purple and green) surrounded by an upper sequence of volcano-sediments (blue and yellow). Feysville contains the lower mafic-ultramafic sequence of rocks in the core of the project area, with the Boulder Lefroy fault interpreted to pass along the western flank of the project. Another major structure parallel to the Boulder Lefroy fault passes through the eastern side of the project for some 10km, and hosts Feysville’s Rogan Josh and Dalray prospects.  
The company is now focusing its efforts on bringing the deposit up to JORC Code compliant status. 
Feysville proposed exploration targets

Leonora

Anglo Australian Resources NL 100%
The Leonora Project is located 25 kilometres south of the Jaguar mine of Jabiru Metals Limited (Reserves: 3.23 Mt @ 1.8% Cu, 7.91%Zn, 99 g/t Ag, 0.4 g/t Au) and Jabiru’s Bentley deposit (3.0 Mt @ 2.0% Cu, 9.8% Zn, 138 g/t Ag, 0.7 g/t Au) (see Figure 1& 2). Both these deposits were discovered by drill testing bedrock electromagnetic conductors. These two volcanogenic massive sulphide (VMS) style deposits occur near the boundary between mafic and felsic units. 

The Leonora Project consists of two Exploration Licenses, located 10 km north of Leonora, which cover a 10 km long zone of felsic volcanics and sediments broadly analogous to the geology at Jaguar and Bentley. Based on interpretation of previous aircore drilling and of aeromagnetic data, Anglo Australian Resources considers 7km of this zone is highly prospective for VMS-style mineralisation. Most previous exploration of the Leonora Project focused on the gold potential and aircore drilling defined two gold-anomalous zones. Holes in only two of the multiple traverses of aircore drilling were assayed for copper, zinc and lead. The hole nearest to and on the strike trend of the conductor is highly anomalous in copper, as it contains a 9m interval assaying 600ppm Cu within weathered basalt compared to background values of 40 – 60 ppm Cu. 

As bedrock in the zone is mostly covered by younger transported sediments, the Company used a MLEM survey as its primary exploration tool to search for VMS deposits that are generally highly conductive and amenable to location by such geophysical methods. A Moving Loop Electromagnetic (MLEM) survey completed in May 2011 at the Leonora Project targeting potential massive copper-zinc mineralisation discovered a strong 800m long bedrock conductor. Sample spoils from previous aircore drilling indicated that the conductor was located within favourable stratigraphy proximal to the contact between felsic and mafic volcanic rocks. Preliminary interpretation of the MLEM anomaly by geophysical consultants, Southern Geoscience, suggested the source of the conductor, (potentially massive or disseminated ulphide), commenced at the base of weathering approximately 100m below surface and dipped steeply south west. The conductor presented an exciting and compelling drill target.

Two diamond core holes were completed in October as extensions to the pre collar holes completed in May. Both diamond core holes intersected a sequence of mafic and felsic volcanic and volcaniclastic rocks with minor non-volcanic units. Trace to minor amounts of disseminated sulphides consisting of chalcopyrite, pyrrhotite and pyrite were observed in the core and a narrow zones of stringer chalcopyrite and pyrrhotite were intersected within a foliated mafic intrusive in hole LRCD001. Anomalous copper and zinc values supported by weakly anomalous values in antimony and tin were recorded in several of the intervals selected for assaying. The best intersection comprised a 0.65 metre interval at 2.08% copper from 233.25 metres in hole LRCD001. Narrow zones of black shale containing variable amounts of pyrite and pyrrhotite and minor amounts of chalcopyrite intersected in both holes most likely explain the source of the MLEM conductor. A downhole EM survey was undertaken on each hole to define and confirm the conductive zone. The survey is currently being analysed AAR’s consultant geophysicists. Preliminary analysis suggests a strong off hole conductor possibly related to massive sulphides has been detected in both holes. A strong in hole conductor is representative of the sulphidic black shakle hirizobs intersected in both holes ( see diagram "Down Hole EM. Results - A Component" in the Galleriy section). Drill hole statistics and summary drill Logs are presented in Tables 1 and 2 below. For a complete list of assays see AAR's September 2012 Quarterly Report.

Table 1
Drill Hole Statistics
Hole ID MGA_E MGA_N Elevation Precollar Depth Total Depth Azimuth Dip
LRCD001 334050 6819887 500 110.6 381.3 60 -60
LRDC002 334132 6820276 500 116.5 375.3 240 -60
Summary – Diamond Core Logs:
Hole LRCD001 From – To (metres) Description
110.60-188.00 Mafic intrusives, medium grained gabbro. Intervals of bleaching and carbonate veining.
188.00-213.77 Mafic intrusive with 2% chalcopyrite, pyrrhotite and pyrite and strong bleaching and carbonate veining.
213.77-214.00 Mafic intrusive with 7% disseminated and stringer chalcopyrite, pyrrhotite and pyrite.
214.00-224.60 Mafic intrusive with 2% disseminated chalcopyrite, pyrrhotite and pyrite.
224.60-230.64 Mafic intrusive, medium grained gabbro.
230.64-233.80 Mafic intrusive with 3 to 5% disseminated chalcopyrite, pyrrhotite and pyrite and 5% stringer chalcopyrite and pyrrhotite with abundant quartz carbonte veining from 233.23 and 233.80..
233.80-248.00 Fine to medium grained gabbro altered gabbro with quartz carbonate veins.
248.00-256.90 Gabbro with 10% pyrrhotite and 5% chalcopyrite and fine to medium grained gabbro.
256.90-260.40 Intercalated basalt , black shale and tuff.
260.40-270.90 Felsic volcaniclastic and banded tuffs.
270.90-284.20 Intercalated black shale, chert and felsic volcaniclastic.
284.20-285.28 Black shale with quartz boundins with 10% pyrrhotite and 1% chalcopyrite.
285.28–288.55 Felsic volcaniclastic with 5 % pyrrhotite, 1% chalcopyrite towards the base of the interval.
288.55-381.30 Felsic volcaniclastic. Minor basalt fragments. Minor disseminated pyrite. End Of Hole
Hole LRCD002 From – To (metres) Description
116.50–327.38 Units of basalt / andesite, moderate bleached with quartz carbonate veining and chloritic alteration alternating with felsic volcaniclastics weakly choritic in places and containing minor amounts of pyrite.
327.38-332.35 Black shale and felsic tuff. 7 to 15 % pyrrhotite and pyrite and up to 1% chalcopyrite.
332.35-359.33 Felsic tuff and lava. 5% pyrite and pyrrhotite and trace chalcopyrite from 332.35 to 337.30.
359.33-375.30 Crystal Tuff. End Of Hole

Koongie Park Project WA

Anglo Australian - 100% interest 
VMS style zinc-copper deposits in volcano sedimentary stratigraphy with resources mapped at Sandiego and Onedin  
 
The style of gold mineralisation in the area is exhibited in the Nicholson’s Find gold deposits, held by Pacific Niugini Limited, where mineralization is structurally controlled within a 400 metre wide NNE trending strike-slip shear zone adjacent to the northwest margin of the Lodestone Monzogranite. Host rocks comprise folded and metamorphosed turbiditic greywackes, felsic vocaniclastics, mafic volcanic and laminated siltstone and mudstone of the Koongie Park Formation. Mineralisation is strongly associated with discontinuous quartz veining and iron-silica-potassium alteration. 

So far, a number of regional structural corridors have been delineated for follow-up work. Of immediate interest is the NE striking Highway shear zone which extends for about 15 kilometres along the contact of the Koongie Park Formation and the southwest edge of the Lodestone Monzogranite within Anglo Australian’s tenements. This area has received minimal historical gold exploration and can easily be evaluated with surface sampling or shallow drilling. 
Onedin Section 20040mN  
 
Onedin Deposit – Indicated and Inferred Mineral Resources 
Zinc Zone: 1,980,000 tonnes @ 6.25% Zn, 0.47% Cu, 32g/t Ag and 0.3g/t Au  
Copper Zone: 2,500,000 tonnes @ 1.1% Cu, 0.8% Zn, 21g/t Ag and 0.3g/t Au  
Total Metal: 36,000 tonnes copper & 140,000 tonnes zinc metal  
(ASX Release 13.06.13)
Sandiego Deposit – Indicated and Inferred Mineral Resources 
Supergene Copper: 370,000 tonnes @ 4.0 % Cu, 2.7% Zn, 48g/t Ag and 0.29g/t Au 
Copper Zone:1,140,000 tonnes @ 2.8% Cu, 1.5% Zn, 12g/t Ag and 0.43g/t Au 
Zinc Zone:1,220,000 tonnes @ 0.2 % Cu, 7.0% Zn, 26g/t Ag and 0.13g/t Au 
Total Metal:50,000 tonnes copper, 115,000 tonnes zinc, 2 million ounces of silver & 26,000 ounces of gold. 
(ASX Release 13.06.13) 
  
New prospective target areas  
  • Sandiego and Onedin mineralized zones represent fold hinges  
  • Homogeneity of metal in rock strongly suggests that the metal has been remobilized (which explains the Sandiego and Onedin accumulations)  
  • Within the Project area, airborne magnetics has identified a number of other potential hinge structures that are yet to be drill-tested  
  
Koongie Park Gold  
  • Significant acreage position held adjacent to Nicolsons gold mine (Pantoro Limited): 1.8 Mt @ 5.2 g/t for a total of 294,000 ounces
  • Mineralization structurally controlled within wide NNE trending shear zone adjacent to monzogranite  
  • Host rocks comprise folded and metamorphosed sediments, volcanics and volcano-sediments of the Koongie Park Formation  
  • Mineralisation strongly associated with quartz veining and Fe-Si-K alteration  
Exploration
 
Anglo Australian Resources tenements cover over 40kms of the base metal prospective Koongie Park FormationOver 245 RC and diamond drill holes consisting of 50,0417m have been drilled on the project. AAR's exploration focused on resource, metallurgical and geotech drilling at Onedin and Sandiego with minor exploration drilling at the Atlantis prospect.Exploration targets correspond to a specific mappable horizon within the Koongie Park Formation. Deep weathering and associated depletion, structural complexity and some areas of cover present a difficult exploration environment. However, the relationship between magnetite alteration and the associated magnetic anomalism of the mineral deposits combined with previously collected geochemistry, EM and magnetic data provides a powerful set of targeting tools.
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