Gold

Exploration

Local Mineralisation

 

Luck Draw Open Pit - Eastern Face
Luck Draw Open Pit - Eastern Face

The Lucky Draw gold deposit occurs in metasomatised sediments of the Ordovician Triangle Formation immediately below the contact with mafic volcanic rocks inferred to belong to the Rockley Volcanics (Sheppard et al., 1995) and very close to the contact with the Carboniferous Burraga Granite. The skarn-like ore displays a gold – bismuth - tellurium association (an “intrusion related gold” signature), but is generally sulphur-poor with a very low sulphide mineral content. Minor amounts of molybdenite, pyrite, arsenopyrite, chalcopyrite and wittichenite (copper – bismuth sulphide) have been observed in the ore. Skarn-like mineral assemblages (including garnet and gedrite), alteration and mineralisation at Lucky Draw including are considered by Sheppard et al. (1995) to be the product of contact metamorphism and hydrothermal activity associated with the intrusion of the Burraga Granite.

 

Lucky Draw was discovered by Renison Goldfields Consolidated Ltd (RGC) in the mid-1980s and that company mined a total of 1.48 million tonnes grading 3.53 g/t gold between 1988 and 1991. The current resource at Lucky Draw (31,600oz; see Resources section below) is largely contained in the pod of un-mined mineralisation to the northwest of the pit. This material was not economic in the gold price and cost environment of the early 1990’s. The pit remains open and is reported to be in good condition.

Gold mineralisation at Lucky Draw is oriented sub-parallel to the contact of the Burraga Granite, dipping gently to the west. Pre-mining the mineralisation occurred over a strike length of about 400m, extending 100 m – 150 m down dip. True width varied significantly, but was up to 40 m.

Similar mineralisation to Lucky Draw is located at the Hackneys Creek prospect some 800 metres north of the Lucky Draw deposit was also discovered by RGC in the late 1980s. Despite the proximity of the prospect to the Lucky Draw mine, the Hackneys Creek deposit was never mined. BCE currently estimate the Hackney’s Creek resource at 102,000 ounces of gold (see Resources section below). Most of the higher grade mineralisation occurs between 70 and 165 metres below surface in a similar geological setting to that at Lucky Draw. The deeper mineralisation is associated with up to 5% pyrrhotite as fracture fillings and microveinlets.

The boundaries of gold mineralisation at Lucky Draw and Hackneys Creek are sharp with little to no low grade halo. This means that there can be no evidence of proximity to mineralisation in holes drilled just metres away from economic mineralisation.

Drilling along strike from between Lucky Draw and Hackney’s Creek is limited to 30m deep holes drilled on 50m spaced sections. Drilling along strike to the south of Lucky Draw only extends 200 m beyond the pit. Drilling along strike to the north of Hackney’s Creek only extends 80 m (two sections) beyond the northern end of the Hackney’s Creek resource.

The Lucky Draw – Hackneys Creek area has been subject to several geophysical surveys. IP data is limited, but appears to be able to detect pyrrhotite associated with gold mineralisation. Magnetic surveys show weak anomalies associated with the Lucky Draw and Hackney’s Creek deposits, however there are numerous comparable magnitude anomalies. Airborne radiometric surveys (K, Th) map the contact between the Triangle Group and the Rockley Volcanics, host to both the Lucky Draw and Hackney’s Creek deposits

Near Term Targets

The primary targets for gold will be on the Burraga Granite contact which hosts the high grade Lucky Draw and Hackney’s Creek deposits. While the remnants of Lucky Draw and the un-mined Hackney’s Creek resource provide a ready gold resource, the Company believes a resource of in excess of 500,000 high grade ounces is needed for economic extraction and will seek to build on current resources around the known deposits as well as exploring the remainder of the Burraga Granite contact.

The McPhillamys gold and copper resource announced in July 2010 located within the Orange District Exploration Joint Venture (Newmont Australia Limited and Alkane Resources Ltd) recorded a 2,960,000 ounce gold and 60,000 tonnes copper resource. This deposit is located approximately 50 kilometres northeast of Burraga. It is related to the Godolphin Fault which has been inferred to trend through the Tenements providing potential for a second style of mineralisation different to the Lucky Draw and Hackney’s Creek deposits.

Resources

Mineral Resource Statement

GOLD

Deposit Category Cut off
(Au g/t)
Tonnes Au (g/t) Ounces
EL 6463—Lucky Draw Inferred 0.5 470,000 2.1 31,600
EL 6463—Hackney's Creek Inferred 0.5 2,210,000 1.4 101,800
Total Inferred 0.5 2,680,000 1.6 133,400

PARAMETERS

Deposit Estimation
Method
Data
Spacing
Data Type Grade
Top-Cuts
Bulk
Density
EL 6463—Lucky Draw Ordinary Kriging 25 x 25 m RC Drilling 25 gpt Au 2.6 t/m3
EL 6463—Hackney's Creek Ordinary Kriging 50 x 50 m RC Drilling 2.6 t/m3