Reedy South Gold Project (100%)

The Project covers 272km² of the highly prospective Cue goldfields, centred on the southern portion of the prolific Reedy Shear Zone, within the Meekatharra-Wydgee greenstone belt. The Project comprises one granted mining lease (M20/446) covering the historic underground workings of Pegasus and King Cole, a granted exploration and prospecting license (E20/938 & P20/2289) and four exploration license applications (E20/969, E20/971, E20/972 & E20/974). Reedy South is situated 40km north of Cue, via the Great Northern Highway and is 80km south of Meekatharra..

The Project is situated within the prolific Cue-Meekatharra gold district, home to Reedys (1.6moz) and Day Dawn (2.6moz) gold deposits, with two mills operating within 60km of the Project.

There were two underground workings at M20/446, accessed via the Pegasus and King Cole shafts, however there is no official gold production recorded from the historical underground production. An RC drilling program undertaken in 2015 by the project owner focused on the Pegasus prospect consisting of 42 holes for 1,820m.

On 29 October 2020, the Company announced a maiden JORC mineral resource estimate (MRE) for the Reedy South Gold Project. The maiden MRE consisted of 779,000 tonnes at 1.7 g/t Au for 42,400 ounces, including:
o 6,600 ounces of Indicated Resources; and
o 35,800 ounces of Inferred Resources
Given the average depth of drilling to date is ~60m, this warrants immediate drilling to test depth and strike extensions of the current prospects on completion of the maiden MRE.

Tenement M 20/446 was granted on 17th August 2000. Tenement P 20/2289 was granted 2 June 2017,  E 20/938 was granted 22 May 2019. Tenements E 20/969, E 20/971, E 20/972 and E 20/974 are currently in application. Covering 272km², the tenements overlie prospective geology and structural features that have been identified in regional magnetics and from GSWA mapping, with next stage work programs looking at further mapping and geochemical sampling programs.

Table 1: Tenement Details

Key companies which have managed the tenement since 1984 include Homestake Australia Ltd, St Barbara Mines Ltd and Wakeford Holdings PL. The majority of drill holes (Table 2) have been RAB and RC by Homestake and St Barbara, exploring for gold. The tenement has been held in private hands since.

During 2015, 42 angled RC holes (PGRC10001 – 10042) to infill existing historic holes, on 10m spaced drill lines along a strike length of 120m, were completed over the Pegasus workings.

The holes were designed to define the footwall and hanging wall contacts on both sides of the shear zone which averaged 20m in true width. The drilling confirmed the historic high grades associated with the Pegasus deposit, but did not test mineralisation below 60 metres.

Table 2: Historic Drilling Summary at M 20/446

Mineralisation in the Mining Lease is hosted by the Reedy Shear Zone (RSZ) a localised dis-conformable contact between two greenstone groups. Anastomosing structures develop within the RSZ that focus fluid migration and gold mineralisation. Strong potassic-silicic-pyritic alteration is associated with gold mineralisation and localised within the footwall and hanging contacts of the 20m wide sub-vertical RSZ. Linear zones of more intense deformation appear to be important in the localisation of gold mineralisation within ultramafic zones often adjacent to mineralisation. Minor bucky quartz veining intrudes the shear and appears to run parallel to the shear zone.

On 29 October 2020, the Company announced a maiden JORC mineral resource estimate (MRE) for the Reedy South Gold Project.  The MRE will feed into the design of the Company’s first pass drilling program at the Pegasus and King Cole prospects, which will consist of an initial ~2,000m of RC drilling (with potential diamond tails). Concurrently, with the drilling program, the Company’s geologists will conduct an initial geological mapping program across E20/969, E 20/971, E 20/972 and E 20/974.

The MRE has been estimated using RC drilling. A total of 117 RC holes for 7,182m has been drilled since 1984. Drilling programs have been conducted by Homestake Australia from 1984 to 1987 (21 holes for 1,345m), Churchill Resources NL in 1988 (2 holes for 174m), St Barbara Mines Ltd from 2001 to 2002 (48 holes for 3,670m), Wakeford Holdings in 2010 (4 holes for 173m) and Murchison Mining in 2015 (42 holes for 1,820m). Only RC holes have been used in the resource estimation. RAB and air-core holes and trenches have been used to guide the geological interpretation where appropriate but the gold grades from these have not been used

Table 3: Reedy South Mineral Resource Estimate 0.5g/t cut-off grade