Ironstone Gold Project (100%)

May 2016

Located in the heart of the North-eastern goldfields of Western Australia the Ironstone gold project is surrounded by some of the richest and more prolific gold producers in Australia. There is no better exploration address.

The Company controls an extensive tenement packages containing several high grade gold prospects where substantial quantities of gold nuggets have been located.

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Figure 1 Gold nuggets recovered by prospectors within the Company’s tenement package

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Figure 2 Map of the tenements (red outline) at the Ironstone Gold Project near Laverton WA, with gold targets highlighted as yellow dots.

Ironstone Gold Prospect

Drilling in January 2016 (five holes for 910 metres) intersected mineralised zones of shearing and quartz veining within basalts in the target zones (Figure 3). Gold mineralisation was identified in the main target zone with hole IRRC003 intersecting 12 metres at 1.85 g/t gold from 116 metres. New sampling and testing of quartz veins in diamond hole CWD003 intersected 4.5 metres at 5.5 g/t gold from 119 metres including 0.28 metres at 24 g/t gold and 1 metre at 4.2 g/t from 175 metres (Figure 4). A total of five holes for 910 metres of drilling (IRRC001-005) have been completed at the Ironstone gold prospect.

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Figure 3 Geological map of the Ironstone Gold prospect showing drill locations and untested southern extension.


The drilling has successfully confirmed that significant gold mineralisation is present within the widespread structural alteration system and further exploration will be directed at identifying those parts of the system where a change in strike direction or an intersection with other faults is likely to open up dilation zones resulting in substantial mineralisation.

Analysis of the diamond core indicates that high grade mineralisation is related to zones of intense quartz-carbonate veining within a halo of lower grade mineralisation. In addition, structural measurements indicate that the shear zone is sub-vertical and striking north to NNW. The mineralised zone is open to the south-SSE and appears to plunge to the South.

Historical drilling targeted the mineralisation further to the east missing the main prospective zone which is completely untested for at least 500 metres. Sub-audio magnetic geophysics conducted over the prospect indicates that the mineralised structures are offset by faulting (Figure 3). The Company will now conduct a detailed soil sampling program immediately south of the known mineralisation. Sampling will help define the exact location of the mineralised zones.

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Figure 4 Cross section showing mineralised lodes, open at depth and to the south.


Regional Gold Mineralisation-Ironstone Prospect (100%)

During the March quarter the Company also reported the discovery of gold nuggets within the regional Ironstone Gold prospect. Detailed metal detecting has identified a significant number of gold nuggets at surface over a 3 kilometre long trend (the Comet Well trend) that coincides with a major regional fault structure. The nuggets were located by prospectors operating under a formal tribute agreement with the Company. Recent prospecting by the tribute group has identified visible gold from a 2 metre deep pit occurring adjacent to a quartz vein where 4 ounces of gold has been recovered (Figure 5). Along the 3 kilometre trend a total 40 ounces of gold has been recovered with the largest nugget weighing 20 grams.

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Figure 5 Gold nuggets recovered by prospectors within the Company’s tenement package

Evaluation of the regional magnetic data over the Ironstone gold project has identified several NW-SE trending shear systems that have the potential to host substantial gold mineralisation (Figure 6). The Comet Well trend and associated regional structures extend at least 30 kilometres north to A1 Minerals Bright Star deposit and only limited historical exploration has been undertaken.

The identification of significant numbers of gold nuggets along this trend has resulted in the Company planning an exhaustive close spaced soil program to identify areas that may host significant gold mineralisation. The soil sampling program will be carried out in conjunction with the soils program planned for the Ironstone Gold prospect.

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Figure 6 Regional geology map showing the 3 kilometre long Comet Well gold nugget trend identified to date