Reedy South Gold Project (100%)

The Project covers 156km² of the highly prospective Cue goldfields, including 1km of strike along the prolific Reedy Shear Zone (RSZ). The Project comprises one granted mining lease (M20/446) covering the historic underground workings of Pegasus and King Cole, and three exploration license applications (E20/969, E20/971 & E20/972). The Project 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 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.

Based on initial review of QA and QC of available exploration data, White Cliff believes that there is a sufficient dataset to progress the Reedy South Gold Project towards a maiden JORC mineral resource estimate.  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 M20/446 was granted on 17th August 2000 and is currently held by Harley James Sears and Wakeford Holdings Pty Ltd; the tenement area size is 29.14 hectares and has a minimum expenditure requirement of $10,000 per annum. Historic mining activity on the tenement includes two historical underground workings named Pegasus and King Cole; no official gold production has been recorded with the department of mines. The tenement consists of 3 historic GML’s (20/2552, 20/2457 and 20/2458) approximately 1200m long and 240m wide centred along the Reedy Shear Zone and is surrounded by M 20/12 currently held by Big Bell Gold Operations Pty Ltd, a subsidiary of Westgold. M 20/446 has been in private ownership since the grant date in 2000.

Tenements E 20/969, E 20/971 and E 20/972 are currently in application. Covering 156km², 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.

The Company has engaged Auralia Mining Consultants to undertake a maiden JORC mineral resource estimate (MRE) on the Reedy South Gold Project, which is anticipated to be finalised in the next 3-4 weeks.  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). White Cliff is planning to start drilling in mid to late-October, subject to rig availability. Concurrently, with the drilling program, the Company’s geologists will conduct an initial geological mapping program across E20/969, E 20/971 and E 20/972.