we ODIN AUSTRALIA LTD ACN 059793163 By NqdO EPM 9603 PERCYVILLE FINAL REPORT PERIOD 4. November 1994 to 3. November 1995 (R#97742%UR#Z27713 SUMMAR Programmes of air photo and Landsat interpretation, reconnaissance geological traversing, rock chip sampling and stream sediment panning were completed and resulted in the targeting of three prospects for further exploration: Perseverance: The single line of old narrow workings is of little direct interest, but the line terminates to the northeast against a northerly trending zone of altered granitic and quartz breccia, This is a complex body or set of bodies with substantial volume potential (200 m by 50 m) currently exposed lying on the contact between two granitic bodies, Part of the total body could be covered by an outlier of younger sandstone. Rock chip samples collected from the breccia were distinctly gold anomalous and assayed up to 2.64 w/t dv Patrick East: Gently north dipping quartz veins occur in four separate groups over a width of approximately 25 metres approximately 100 to 200 metres south of the major Patrick Air Photo Linear, which at this location is filled with rhyolite and altered andesitic intrusives. Two kilometres {o the east, the rhyolite within the linear exhibits local brecciation and alteration and a low tenor of gold mineralisation (0.21 g/t Au). Rock chip samples of the quartz veins and the wallrock at Patrick East returned gold values of upto 11.2 g/t Au and 2.27 g/t Au respectively. Long Hill: A 1000 metre long by up to 40 metre wide zone of sheared/brecciated/altered granodiorite contains brecciated gossanous quartz veins up to 5 metres thick. The veins exhibit highly variable textures and cross-cutting relationships but generally dip at a ‘moderate angle to the north. Rock chip samples returned gold assays up to 1.14 gt dv Scout reverse circulation percussion drilling was conducted at each of these prospect areas: subsurface intersections of the mineralised structures were of much lower grades than the surface samples. This apparent difference in grades may be explained by the processes of supergene enrichment, a patchy gold distribution, or a combination of both ODIN AUSTRALIA LTD \NIVEZICH Exploration Manager Valid on 74 Ce1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 CONTENTS. INTRODUCTION LOCATION AND ACCESS PHYSIOGRAPHY MINERAL TENEMENTS, PREVIOUS WORK REGIONAL GEOLOGY WORK COMPLETED BY ODIN AUSTRALIA LTD. WORK COMPLETED BY STRIKE EXPLORATION 8.1 Period 4th November 1993 to 3rd November 1994 8.1.1 OPEN FILE DATA COMPILATION 8.1.2 AIR PHOTO INTERPRETATION 8.1.3 GEOLOGICAL MAPPING 8.13.1 Geology 8.1.3.2 Mineralisation 8.14 ROCK CHIP SAMPLING 8.1.5 AREAS OF INTEREST 8.1.5.1 Black Eagle Breccia 8.1.5.2 Black Eagle Gorge 8.1.5.3 Broad Rhyolite area around Perey Gorge 8.1.5.4 Anastomosing Rhyolite Dykes 8.1.5.5 Old Mine Workings 8.1.5.5. Perseverance 8.1,5.5.2 Patrick Kast 8.1.5.6 Long Hill 8.1.5.7 Daniel Creek Formation 81.5.8 Others 8.1.6 INTERPRETATION AND DISCUSSION OF RESULTS 8.2 Period 4th November 1994 to 9th October 1995 8.2.1 RECONNAISSANCE GEOLOGICAL AND GEOCHEMICAL TRAVERSING 8.2.1.1 Lead Creek Area 8.2.1.2 Upper Black Eagle Gully and Upper Homeward Bound Creek824 CONTENTS CONTINUED DETAILED GEOLOGICAL MAPPING 8.2.2.1 Long Hill 8.2.2.2 Perseverance 8.2.2.3 Patrick East ROCK CHIP SAMPLING 8.2.3.1 Long Hill 8.2.3.2 Perseverance 8.2.3.3 Patrick East REVERSE CIRCULATION PERCUSSION DRILLING, 8.2.4.1 Long Hill 8.2.4.2 Perseverance 8.2.4.3 Patrick East 9,0 CONCLUSIONS Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Appendix | Appendix 2 Appendix 3 Appendix 4 Appendix 5 FIGURES Description Location Map 1 Blocks/Sub-Blocks Plan 1 Regional Geological Setting 1 Sample Location Map - Odin Australia 1d i ‘Air Photo/Landsat/MSS Target Areas 1 1 Il 1 Geology and Sampling : Sheet 1 of 2 Geology and Sampling : Sheet 2 of 2 Long Hill - Geology and Rock Chip Geochemistry Perseverance - Geology and Rock Chip Geochemistry Patrick East - Geology and Rock Chip Geochemistry APPENDICES Odin Australia Lid Assay Results Rock Chip Sample Locations Strike Exploration Pty Ltd Assay Results Reverse Circulation Percussion Drill Logs Scale 250 000 250 000 250 000 25.000 500 000 25000 25 000 2.000 12.000 1;2000 Reverse Circulation Percussion Drilling Analytical Results1.0 INTRODUCTION Exploration Permit for Minerals (EPM) 9603 covers the old Percyville Goldfield and numerous associated workings, as well as a variety of geological terrains in the surrounding ground, Small discrete quartz veins are generally located along shear and faulV/fracture systems. Breccia zones occur commonly within such structures but usually do not extend far from the faults themselves, Volcanic hosted breccias of greater extent, such as Kidston, have far greater economic significance Reconnaissance rock chip sampling by Odin Australia Limited (Odin) indicated potential for gold mineralisation associated with Palaeozoic brecciated acid volcanic extrusive and intrusive rocks within the Percyville Gold Field. Open File Company Report research by Strike Exploration Pty Limited (Strike) indicated other centres of gold mineralisation within similar lithologies and the recorded occurrence of other similar bodies apparently untested by modern exploration methods. Strike entered into a farm-in agreement with Odin whereby Strike will explore for breccia-hosted and stockwork style gold mineralisation within the EPM. Other parties active in the area include Kidston Gold Mines, Eltin Minerals, BHP Minerals, and MIM Exploration. 2.0 LOCATION AND ACCESS EPM 9603 (Percyville) is centred at 143° 45' E 19° 00° S, south of Forsayth in the Georgetown region of Northern Queensland (Figure 1). It is covered by the Gilberton (SE 54-16) and Georgetown (SE 54-12) 1:250 000 map sheets and by the Gilberton (7659) and Forsayth (7660) 1:100 000 map sheets. Access is from The Lynd and Kidston, via the Gilberton road, or from Forsayth via a very poor road through Robin Iood Station. 3.0 PHYSIOGRAPHY ‘Topography is not excessively steep and vehicular access is reasonable in most interfluve areas. Vegetation is open cucalypt savanna typical of the arid tropics in northern Australia. Thick lancewood timber cover has developed over mesas. The area has a low annual rainfall with a monsoonal wet season from January to March with very little rainfall at other times of the year. The area is mainly used for cattle grazing 4.0 MINERAL TENEMENTS EPM 9603 was granted to Odin for a period of one (1) year commencing on 4 November 1993 over 92 sub-blocks (Figure 2). The description of the Permit is as follows:BLOCK IDENTIFICATION MAP - SERIESB_: NORMANTON. Block Number ‘Sub-Blocks No. 2516 Zz 1 2517 vw 2 2588 E JK NOPQRSTUVWXYZ 16 2589 AB FG LMN QRS VWXYZ. 15 2590 VWx 3 2660 CDEK 4 2661 ABCDEFGHJKLMNOPQRSTU WXYZ 24 2662 ABCDE JKLO QRS VW 14 2733 BCDE JK PU 8 2734 AB FG L. 5 TOTAL, Renewal over the total area of 92 sub-blocks for one year was granted by the Department of Minerals and Energy in March 1995 5.0 PREVIOUS WORK Previous work on the ground covered by the tenement has been summarised by JNK Exploration Services (October 1993) and by Pathfinder Exploration (December 1993) in unpublished reports for Strike. In summary, 34 previous tenements impacted wholly or in part on the area now held as EPM 9603. Many exploration companies have been active but the most relevant exploration was conducted by Central Coast Exploration (1980), Howard Smith Exploration (1981-1984), Balmoral Resources/Sandhurst (1984-1988), Stevenson Enterprises (1986-1989) and Kidston Gold Mines (1990-1992). ‘Apart from early work for other commodities, most exploration has concentrated on assessing known auriferous fissure fill vein deposits and alluvial deposits. Regional work such as stream sediment sampling and aeromagnetic surveys have been inconclusive with respect to any wider prospectivity, and there have been no reports of large scale target zones. Much of the ground has not been covered in detail 6.0 REGIONAL GEOLOGY The EPM lies wholly within the Proterozoic terrain of the Georgetown Block (Figure 3). Over most of the tenement, basement is represented by gneisses, schists, metasediments and metavolcanics of the Einasleigh Metamorphics and Robertson River Metamorphics,with minor areas of lower metamorphic grade Bernecker Creek Formation sediments and Cobbold Metadolerite. These basement lithologies have been intruded by the Proterozoic Digger Creek Granite, ‘a pegmatitic S type granitoid with migmatitic and schistose phases, and by the Siluro/Devonian Robin Hood Granodiorite, a pinkish homblende biotite quartz granodiorite. All are in turn intruded by Carboniferous thyolitic and andesitic dykes and plugs. Conglomeratic sediments of the Devonian/Carboniferous Gilberton Formation, and of the Jurassic Hampstead Formation, cover appreciable areas, the latter forming high relief flat topped mesas. Most mineralisation in the region is emplaced in the Robertson River Metamorphics , the Digger Creek Granite, and in the thyolites, and may be genetically related to both the Robin Hood Granodiorite and the thyolites. 7.0 | WORK COMPLETED BY ODIN AUSTRALIA LTD Pathfinder Exploration was commissioned by Odin to compile and evaluate Open File Report data over the EPM. Pathfinder concluded that there is sufficient merit in the area to warrant detailed exploration commencing with a thorough compilation of recent stream sediment sampling results. Odin collected a number of rock chip samples from areas of known mineralisation and areas of brecciation/alteration. Sample locations are shown in Figure 4 and assay results are listed in Appendix 1, Of particular note are the results from float samples collected near Black Eagle Gully, viz., M4 at 110 ppm Au , MS at 1.02 ppm Au and AS at 065, ppm Au. A possible source outcrop consisted of altered and sulphidised autobrecciated (?) acid voleanic rock JNK Exploration Services were commissioned by Odin to briefly evaluate and categorise the known mineralisation and to provide a commentary on mineralisation style, possible conceptual models, and effective exploration methodology. JNK recommended four (4) areas for further work, including the area of brecciated volcanic rock mentioned above 8.0 WORK COMPLETED BY STRIKE EXPLORATION PTY LTD 8.1 Period 4th November 1993 to 3rd November 1994 The programme of work comprised open file data compitation/evaluation and airphoto interpretation for the generation of target areas, and subsequent ground follow-up by geological mapping and geochemical rock chip sampling,8.1.1 OPEN FILE DATA COMPILATION INK Exploration Services was contracted by Strike to compile and evaluate most recent Open File exploration data for EPM 9487 and to target areas with untested exploration. potential. Five areas were recommended for further exploration :- (i) the Josephine line of lode, (ii) the Boomerang line of lode, (iii) the Black Eagle Gully breccia area and its extensions to the east, (iv) the Patrick line of lode, and (v) the Ahrpan Creek area. A multispectral scanner (MSS) anomaly partly falls within the EPM area (Figure 5) Pathfinder Exploration was commissioned by Strike to conduct a review of previous exploration of the area covered by EPM 9603 (a modification of EPM 9487) and concluded that the area has been inadequately explored for large breccia systems in rhyolitic rocks associated with subsidence across the tops of acid intrusive bodies 8.1.2 AIR PHOTO INTERPRETATION ‘A combination of airphoto/Landsat interpretation was used to delineate potentially mineralised target areas at lineament intersections and circular structures (Figure 5), Airphotos at 1:25 000 scale were used primarily for field navigation but preliminary photo-interpretation was also done to locate structural features of potential interest Significant linears and circular structures from this have been plotted on the geological maps in this report (Figures 6 and 7), Major regional faults such as the Robertson River and Little Robertson River Faults are very obvious, together with the intrusive and extrusive units which have exploited these faults, Other lineaments are best developed in Robertson River Metamorphics and Digger Ck Granite, especially in the ENE trending zone from Homeward Bound to the northern Percyville workings (Patrick, Perseverance, etc.), The larger of these lineaments also pass into the Robin Hood Granodiorite. Individual lincars are not necessarily continuous, but some groups of en echelon structures persist for several kilometres, e.g. the "Patrick" and “Andrew” sets each run for 6-7 kilometres. None show geological displacement Ground traversing shows these structures to vary from narrow shears, rhyolite or andesite dykes, chlorite/cpidote/sericite alteration zones, quartz/gossan veins, to no local expression at all Shorter linears are common especially in the Digger Ck Granite, where they form intersecting conjugate sets, On the ground some of these prove to be dyke swarms, but there are also pegmatites, shears, and alteration zones. Numerous apparent circular structures are noted in the Robertson River Metamorphics, the Digger Ck Granite and the Robin Hood Granodiorite, varying in size from 100 metres to I kilometre. Some are not strictly circular structures, but rather sub-circular loci where linears appear to converge.All such features have been plotted on Figures 6 and 7 and ground inspection carried out ‘on some. To date, many have proved to be artefacts of the photos or preferential erosion around outliers of Mesozoic sandstone, but two do show an expression of weak hydrothermal activity - at Lower Percy, with patchy pervasive chlorite sericite alteration, and west of Carbon Copy, with local pervasive chlorite epidote alteration. Most still require to be followed up. 8.1.3 GEOLOGICAL MAPPING Mapping onto airphotos was undertaken to determine the principal areas of continuing interest and to generate concepts for further mineralisation modelling. There was no intention to re-map the EPM or to check the accuracy of existing maps. However, where traversing indicated differences from the accepted geology these have been noted and incorporated on the geological maps (Figures 6 and 7). This was particularly important in the extreme north, around Little Robertson River and Digger Creek, where the BMR 1:100 000 mapping was found to be in error in many places and no Company mapping has been reported. Elsewhere, geological boundaries and definitions of the units have been taken as read. Areas of specific interest identified by Odin or indicated from literature research were followed up. These include the Black Eagle Breccia, the Percyville mining field, rhyolite areas, the Six Mile MultiSpectral Scanner anomaly, and to a lesser degree Ahrpan Creek, westward extensions of Josephine, and the Daniel Ck Formation. Most other areas with known mineralisation were inspected, together with geological features of note, either reported by previous workers or noted from airphoto interpretation. 8.13.1 Geology (Figures 6 and 7) ‘The basement rocks consist of sandstones, siltstones, probable volcanics, and their metamorphic equivalents quartzite, schist, and amphibolite. Although most are part of the generally high grade Einasleigh and Robertson River Metamorphies, many show only mild deformation and metamorphic grade. Metasediment basement of Einasleigh and Robertson River Metamorphics together with minor Bernecker Ck Formation occurs predominantly in the south of the tenement (Granite Ck - Abrpan Ck), along the south east boundary (Scheelite Dam - Percyvale), and in a corridor some 3 kilometres wide along the course of the Percy River from Bark Humpy Ck to Lower Perey Stock Camp. Small areas also occur in the extreme north around Digger Creek The lower part of the metamorphics, overlying the Bemnecker Ck Formation and occupying much of the Percy River Valley and Six Mile area, has been recognised as a separate unit, the Daniel Creek Formation. In addition to the above, local areas of the distinctive amphibolitic Cobbold Metadolerite crop out in the extreme south on the Gilberton Road, in the Lower Percy area, and in the upper reaches of Black Eagle and Homeward Bound creeks‘The Digger Ck Granite occupies wide areas in an cast-west band up to 5 kilometres wide in the centre of the EPM and locally in the extreme north. Compositionally it is gradational with the basement metamorphies, and boundaries are difficult to pinpoint in the field ; it is generally defined by the onset of granitoid texture and pegmatitic phases. It shows every variation from undigested schist through migmatite and gneiss to pegmatitic granite. The basement metasediments and granitoids described above have been intruded by the Siluro-Devonian Robin Hood Granodiorite. On the Gilberton Sheet it forms an arcuate belt from Cave Ck in the west, through Lower Percy and Upper Ahrpan Ck, to Percyvale in the cast, It is interrupted by the graben-like Percy River valley. On the Forsayth Sheet it forms a major province occupying must of the northern part of the EPM but separated from the belt on the Gilberton Sheet by basement metasediments and granitoids with later Permian volcanics and Mesozoic sands, all lying along the major fault which bounds the southern margin of the Little Robertson River valley. Many areas of Robin Hood Granodiorite are uniform and display little alteration, shearing, brecciation, veining or other signs of hydrothermal activity. In specific areas dyking 1s prolific with swarms of rhyolite and (locally) andesite dykes, but these are related to later tectonism rather than to the granodiorite itself. The Carboniferous rhyolite volcanic system forms an extensive network intruding the basement metasediments and granitoids and the Robin Hood Granodiorite, The main portion of it occupies a zone some 15 kilometres long by 2 kilometres wide trending WNW-ESE south of Percyville and Percyvale. The western part, around the Percy Gorge at AMG 789000 E 7893000 N, forms a broad continuous rhyolite mass 4 kilometres long by up to 1.5 kilometres wide; east of this and extending some 6 kilometres to the east, it breaks up into a complex anastomosing network of individual dykes. Other swarms of dykes, not physically related to this complex field, occur throughout the EPM. Several controlling structural trends can be seen (a) Sub parallel to the arcuate bounding fault of the Little Robertson River. including the large rhyolite bodies south of Old Robin Hood Station, and mineralised linears in the northern part of the Percyville field (b) Sub parallel to the Robertson River Fault, from near Old Robin Hood south eastwards to Lower Percy and Six Mile Yards. (c) Parallel to the north-eastern trending graben-like Percy River valley, and extending into the mineralised linears in the Percyville field. (d) Complex conjugate sets in the area of anastomosing dykes described above Some flows or domes may be present, for example a Homeward Bound Ck at 786200 E 7894300 N, or within the broad rhyolite mass around Percy Gorge, but the great majorityappear to be sub-vertical dykes with vertical flow banding on their margins; even in Percy Gorge, the broad mass can be seen to consist of a series of closely packed vertical bodies. ‘Small zones of sericitic alteration characterised by greenish weathering and growth of copper weed (Polycarpaea) are common throughout, and there are somewhat less frequent occurrences of quartz stockworking and quartz-filled brecciation. These are mostly of limited dimensions (a few tens of metres long) but larger zones do exist, as at Black Eagle Gorge where stockworking, silicification and brecciation of unknown extent crops out over 150 metres, The frequency and location of such larger zones has to be established. Outlying rhyolites such as those south of Old Robin Hood do not exhibit any stockworking or brecciation, Rhyolitic rocks are also present in the later Permian Agate Ck Formation which crops out only in limited zones along the Robertson River and Little Robertson River faults. These are highly brecciated in places (mostly pyroclastic brecciation) and have areas of widespread sericite-clay alteration (e.g. south of Mud Spring Dam, 778500 E 7898700 N). However, silicification, stockworking and veining are absent, and there are no other signs of mineralisation Basement is covered in the extreme south of the EPM by Devonian - Carboniferous sandstones and conglomerates of the Gilberton Formation. Elsewhere throughout the tenement substantial areas are obscured by Mesozoic (Jurassic) Hampstead Formation mesas, and by surficial fans of Cainozoic or Quaternary sands and alluvials. 8.1.3.2 Mineralisation (Figures 6 and 7) Known mineralisation and old workings occur in metasediments (Robertson River Metamorphics, including Daniel Ck Formation), in Digger Ck Granite, in Robin Hood Granodiorite, and in rhyolites, but the great majority are in either Robertson River Metamorphics or Digger Ck Granite, e.g., Homeward Bound, Mountain Maid, Lama, Black Eagle, almost all of the Percyville field, Josephine, and Lead Show Mineralisation is of three styles: (a) Fissure fill quartz veins, tectonic quartz breccias, gossanous partings and gossanous breccia fill. All are narrow (usually Jess than 0.5m) and limited to a few tens of metres in length. Reports suggest that grades drop off below the base of oxidation at 30-40 metres, although Union and Boomerang went to 150 metres deep and there is no drilling to support that contention (b) Poorly defined shears and shear breccias with local alteration, Again, workings were narrow and shallow. (c) At Homeward Bound, veins stockworks and quartz boudins in ferruginous gossanous sediments.Base metals (lead and/or copper) are common to most mineralised bodies, and in many cases were the principal or only commodity mined. In the gold producers, grades were normally in the order of ounces per ton. In the Robin Hood Granodiorite, the principal workings were Big Surprise, Big Hope, Carbon Copy, and minor shows at Percyville such as Sensation. Carbon Copy has a high base metal content and occupies an altered shear zone, but all the others are narrow veins with a predominantly silver or gold and silver signature. Orebody size and shape tend to be the same as those in the basement rocks, as described above, ‘The Carboniferous rhyolites are associated with relatively few mines. At the Percy Queen the lode occupies a pyritic siliceous rhyolite breccia with reported wall rock mineralisation, and was a producer of gold and silver. It is currently the subject of a testing programme and by another company. Signs of epithermal activity have been reported from two locations in the region, Percy Queen and Cartwheel, both outside the EPM. These are neither widespread nor intense, but the fact of their presence opens up another aspect of mineralisation for consideration. In this context, it is noteworthy that chalcedonic stringers were found during the current work in a brecciated rhyolite dyke north east of Scheelite Dam, at 793900 E 7890450 N, sample 154, and that sporadic epithermal silica with significant gold grades has also been reported from the rhyolite body immediately south of Mount Hogan Other gold occurrences are present in the EPM, as detrital material in the Mesozoic plateaux and as alluvials in tributaries of the Percy River. These are not considered to be appropriate targets at the present time 8.14 ROCK CHIP SAMPLING Sampling of specific targets was completed in detail where little prior information was available (Black Eagle Breccia, various other rhyolite breccias, previous unmapped vein systems). Where some data already existed, e.g. in the various Percyville workings, enough extra sampling was done to give indications of the distribution of mineralisation, say between veins and wallrock. Elsewhere, samples were taken as appropriate on features of interest located during mapping. Most samples were each approximately 1.5 kilogram grabs of outcrop over approximately 25 square metres. Channel sampling was utilised where appropriate. A total of 132 samples were taken and submitted to Analabs in Townsville for Au by acid digest and AAS finish (method GG329) and Ag As Cu Mo Pb Sb Zn by AAS (method GAIIS) Pulps of 12 selected samples were re-submitted for Au by 30 g Fire Assay (method GG309) to check for any gold not recoverable by acid digest: results of this check confirmed the digest results. Sample locations are shown on Figures 6 and 7 and given as AMG coordinates in Appendix 2. These coordinates have been scaled off field maps and give the positions. close enough to locate on the plans, but are not of pin-point accuracy. Analytical results are listed in Appendix 3 and discussed in detail below in section 8.1.5.8.1.5 AREAS OF INTEREST 8.1.5.1 Black Eagle Breccia East bank of Black Eagle Gully, around 788800 E 7894700 N. Brecciated rhyolite with quartz fill and stockworks; silica and sericite alteration; rarely ferruginous, Maximum dimensions 400 metres by 50 metres but brecciated sections mostly less than 5 metres wide. Samples 74-96. Two series of channel samples across the body (74-78 and 84-94) plus channel samples over selected outcrops Detectable Au (0.03 ppm) in only two samples. ‘Weak 4s anomalism (to 38 ppm) not coincident with Ax No base metals of any significance. This breccia is un-mineralised. Sample values reported by Odin (0.65, 1.02, 110.0 ppm An) were possibly sourced elsewhere 8.1.5.2 Black Eagle Gorge Junction of Black Eagle Gully with Percy River, at 789000 F 7893300 N North-south trending zone of rhyolite breccia, quartz stockworking and silica alteration, at least 150 metres long by 50 metres wide, but boundaries have not been mapped out Contemporaneous mafic dyke included at south end, and boulders of rubble breccia present. Samples 175-180, two (2) metre to five (5) metre channel samples. 0.12 ppm Au in mafic dyke, with 330 ppm Cu, 1570 ppm Zn, and 522 ppm As (sample 175) Max 0.03 ppm Au in breccia, with weak Ag and Pb. The zone is not obviously mineralised, but its size and the level of brecciation warrant further investigation. The occurrence indicates potential for the location of larger or better mineralised zones elsewhere in the rhyolite. 8.1.5.3 Broad Rhyolite Area around Percy Gorge Only part of this widespread area of rhyolite has been traversed. Small zones of brecciation and veining were located, indicating potential for others. Zones consist of linear rhyolite breccias with associated fine quartz stockworks and silica fill, usually trending north-south and cutting across the trend of the host rocks. Marginal 13quartz veins and gossanous quartz. breccias sometimes are present. The largest zones are in the order of 200 metres by 5 metres, Samples from such zones are: 100-102 118-127 166-170 171-174 Maximum 1.24 ppm Au (167). All others < 0.09 ppm Au. Sporadic 4s and Mo response. The sizes of these bodies are too small to be of interest in themselves. However, it would be worth persevering to determine if there are any groupings which might indicate the possibility of substantial pipes efc., at depth. Mineralisation is of low order and very localized, but the systems are geochemically anomalous in gold. 8.1.5.4 Anastomosing Rhyolite Dykes Selected dykes and groups of dykes have been explored, with particular emphasis on their ‘margins and on areas where they intersect or change direction ‘Some contain narrow breccia and stockwork zones, occasionally with marginal gossanous quartz. These are normally sub-parallel to the trends of the dykes. The longest observed dyke extended intermittently for 500 metres (associated breccia exhibited traces of chalcedonic silica, at 793900 E 7890450 N) with a width of 1-3 metres. Samples from these zones are: 97-99 103-108 110 128 154-157 162-165 Maximum 0,20 ppm Au (156) from the dyke with chalcedonic silica described above All others < 0.04 ppm 4u. No significant base metal anomalies. It seems unlikely that these narrower dykes have much potential to host appropriate targets. However, the fact that the only one which shows mineralisation lies in a corridor south of Percyville and Percy Queen may be of significance (see section 8.1.6 below), and more detailed exploration of dykes within this corridor may be justified.8.1.5.5 Old Mine Workings Most workings within the EPM were visited. Some were sampled where it was considered that previous work had been inadequate: Samples Mountain Maid 109 Perseverance HA-113 Perseverance extensions 114-116 Boomerang 117, 132-137 Homeward Bound South 129-131 Sensation 138-139 Patrick East 140-150 Patrick East extensions 151-153 This sampling generally confirms the results of previous investigations, namely that workings were developed in high grade lodes, with strong base metal signatures, and there are no values of significance in the wall rocks. Exploration for possible westward extensions to the Josephine Prospect, which is situated to the east of the EPM boundary, was unsuccessful. ‘Two areas are considered worthy of further investigation: 8.1.5.5.1 Perseverance The single line of old narrow workings is of little direct interest, but the line terminates to the NE against a northerly trending zone of altered granitic and quartz breccia ("Perseverance extensions"). This is a complex body or set of bodies with substantial volume potential (200 metres by 50 metres) lying on the contact between Digger Ck Granite and Robin Hood Granodiorite. The three rock chip samples collected from it were gold-anomalous (0.11-0.13 ppm) with one sample displaying a weak As and Mo response. Part of the area is obscured by an outlier of Mesozoic sandstone 8.1.5.5.2 Patrick Kast In contrast to most of the old workings, the mineralisation at this site consists of gently (but variably) dipping veins in 4 separate groups, some of which may stack up as sub- parallel sheets. It lies 100-200 metres south of the major "Patrick" airphoto linear, which at this location is filled with rhyolite and altered andesite intrusives. Two kilometres to the east, this rhyolite exhibits local brecciation and alteration with a trace of mineralisation (sample 153, 0.21ppm Au). Samples returned up to 11.2 ppm Au from veins and up to 2.27 ppm Aw from wallrock. ‘A model is suggested in which the Patrick lineament acts as a feeder conduit for mineralising fluids until they splay out as veins at a higher level, which we now see on surface. In such a case, the veins should converge downwards and northwards towards the lineament, with grades continuing to depth. This model permits the possibility of bulk tonnages and a geometry which is relatively easy to test 15A similar effect may exist at Boomerang (currently under ML to other parties), on a smaller scale, where erratic veining occurs in the cap of the hill $0-100 metres south of the line of workings. 8.1.5.6 Long Hill Three kilometres NW of Percyvale station, around 795800 E 7895800 N Linear zone of chlorite-sericite alteration in sheared and occasionally brecciated Robin Hood Granodiorite, Multiphase brecciated gossanous quartz veins with highly varied textures dip about 50° to the north and may be cut by other sets. Strike length | kilometre. Potential for moderate bulk target, with a number of vein sets lying on dip slope of hill Samples 181-186, 197. All samples carry Au , from 0.03 to 1.02 ppm. 29 ppm Ag in the sample with 1.02 Au, but no other metals are anomalous The size, textural variety, and presence of gold (albeit at low grades) make this an attractive prospect for further work 8.1.5.7 Daniel Creek Formation Reported to be a basal unit within the Robertson River Metamorphics, overlying the Bemecker Creek Formation, and anomalous in base metals throughout. Occupies most of the southern parts of the area generally mapped as Robertson River Metamorphics in the Percy River Valley and Six Mile area. Most geological maps do not show this as a separate unit. Has not been explored in detail, Outcraps around Homeward Bound have been mapped as a familiarisation exercise, and reconnaissance traversing completed north of Six Mile Yards. Samples 129-131 (including samples 130 & 131 from Homeward Bound South). 1.59 ppm Aw in quartz vein, with high Ag Cu Pb and As. 0.03-0.07 ppm Au in schist around the workings, with anomalous Cw and As, No immediate targets here, but the horizon could be further explored as a secondary target. 8.1.5.8 Others Several areas initially considered to be potentially prospective were examined but were found to be of little continuing interest Unsourced stream sediment anomalies in the western tributaries and headwaters of Ahrpan Creek remain mostly unsourced except as detrital gold shedding from Jurassic 16‘mesas. One anomaly may partly be derived from weak mineralisation in a breccia within the Robertson River Fault (samples 192 and 193). The circular photofeature of Jims Hill has been previously drilled by other parties resulting in weak intersections of Au mineralisation in sparsely pyritic metasediments and metavolcanics (?), Traversing indicated an unsampled granitic dyke and quartz vein breccia represented by samples 159 and 160 respectively which returned zero gold and only very weak base metal responses ‘A MultiSpectral Scanner (MSS) anomaly outlined in the Six Mile area by Geoscan was found to correspond to the eastem contact of Gilberton Formation conglomerates with underlying Proterozoic basement. The anomaly abuts the boundary of EPM 9603 but docs not enter it, and presumably any alteration in the underlying basement within the EPM is covered by Gilberton Formation, Brief reconnaissance of basement rocks in the vicinity failed to indicate any significant alteration, and it may be speculated that the anomaly could be caused by the calcareous nature of much of the basement in this area, Numerous isolated "diy" quartz veins, brecciated quartz, and gossanous quartz outcrops were located and sampled: ‘Samples nN-73 158 161-163, 188-191 198-202 Two veins in upper Black Eagle Gully returned up to 0.29 ppm Au, but otherwise all were < 0.05 ppm Au, although some had significant base metals. This lack of gold response is useful in as much as it indicates that there is not a regional high background of gold, and any structures showing elevated values can be considered to be potentially mineralised 8.1.6 INTERPRETATION AND DISCUSSION OF RESULTS To date, no specific evidence that might reflect the upper levels of a major hydrothermal system have been located. However, the presence of major lineations and conjugate sets of dyke swarms indicate deep seated fracture systems tapping source areas for acid melts. Subsequent hydrothermal activity, utilising these same fracture systems, is evidenced by stockworks, breccias and alteration in the rhyolites and by mineralised veins and gossans in other localities A high proportion of the old mine workings are on E-W or ENE-WSW trends. But from a regional perspective the lines of workings show a grouping within a corridor some 3 kilometres wide aligned a little west of north, and encompassing Josephine, Lead Show, Percy Queen, Percyville diggings, Boomerang, Patrick, Patrick East, Union, Perseverance, and numerous other shows. This suggests that mineralisation was fundamentally controlled by a major north-south fracture system and/or magmatic source at depth. This is supported by the presence of N-S trending breccias and mineralised zones such as Black Eagle Gorge and Perseverance extensions. The corridor may extend ‘southwards to include Mount Hogan. A similar but smaller system could be postulated for the Homeward Bound - Mountain Maid group, perhaps extending south to Lower Percy. 7At least two prospective models emerge from these postulated conceptual model:, one for large scale vertically extended breccia bodies, and one for deep mesothermal vein/stockwork type shoots, explained in more detail below: (1) Intersections of the N-S corridor and E-W/ENE-WSW trends would be an appropriate location for the development of deep-seated breccias bodies, particularly towards the margins of the N-S corridor, as these sites would be favourable for foundering of blocks and intrusive or hydrothermal stoping, Surface indications would include complex zones of small scale structures (2) Common characteristics of some classes of mesothermal deposits are proximity to deep fundamental regional fractures, absence of wide alteration haloes, lack of metal zoning, short lateral extent and deep vertical continuity, Surface expression may be minimal. Such deposits also have potential for bulk resources where they encounter favourable wallrocks. The persistent nature of the major ENE - WSW lineaments suggests that they also must extend to substantial depths where they may tap the even deeper fundamental N- $ corridor. Patrick East fits the model for a mesothermal vein system, with the presence of several vein zones representing a swelling out through favourable host rock. In this model there is no a priori reason for gold grades to fall off at depth other than reaching the base of potential supergene enrichment. With rock chip sampling and historical production indicating grades in the oxidised zone of several ounces per ton of gold, there is every chance of encountering potentially economic primary grades at depth Further exploration should look closely at all zones of structural complexity especially where they fall within the corridor(s) described above. 8.2 Period 4th November 1994 to 9th October 1995 8.2.1 RECONNAISSANCE GEOLOGICAL AND GEOCHEMICAL TRAVERSING Geological and geochemical traversing of the remaining air photo/LandsavMSS, structural and geochemically anomalous target areas was completed during the period. A combination of rock chip and pan concentrate samples was collected: samples are described in Appendix 2 and plotted on Figures 6 and 7. Analytical results are listed in Appendix 3. Detailed investigation of two areas was completed. 8.2.1.1 Lead Creek Area A breccia body occurs in rhyolite near the confluence of Lead Creek and the Percy River ‘The body comprises two narrow lenses of breccia conformable with the rhyolite dyke/flow margins and probably represents a well developed contact breccia with tear-up clasts, Although silicified in par, it contains little quartz or other gangue minerals. Rock chip samples returned 0.19 and less than 0.02 ppm Au. The upper part of the Lead Creek catchment shows signs of widespread but weak hydrothermal activity, Roughly in the centre of the area, a group of shallow workings 18‘exposes quartz/carbonate veins in chlorite/carbonate altered granite, The headwaters contain a zone some 200 m in diameter with common andesite dyking and pervasive carbonate alteration. Groups of quartz/hematite veins and breccias occur on the eastern and western margins of the catchment. Rock chip samples collected from the old workings and the quartz/hematite structures assayed anomalous base metals in places and gold values up to 0.48 ppm, However, the best samples are highly selective, and it is not considered that the tenor of mineralisation is sufficient to warrant further work 8.2.1.2 Upper Black Eagle Gully and Upper Homeward Bound Creek These catchment areas contribute to geochemically anomalous drainage anomalies and contain old alluvial workings in their lower reaches. They are separated from areas of major hard rock workings (such as Perseverance and Patrick) by intervening Mesozoic outliers. Existing maps show little in the way of past mining activity. Several extensive groups of old workings were located and rock chip samples collected from these workings (33536 - $38 and 33544 - 545) returned gold values in the range 3.14 - 36.0 ppm. Most of the workings were developed on sub-vertical veins or shears only a few centimetres wide. although some do show evidence of mineralisation in the wall rocks (sample 33526 of altered granite with thin quartz stringers assayed 7.15 g/t Au). However, the structures are generally thin and frequently pinch out. There is no suggestion that they are more persistent or carry grades to greater depths than similar structures that have been investigated in greater detail elsewhere within the EPM ‘The workings occur within an area of complex geology with numerous dyke swarms and major quartz blows, some of which appear gossanous perhaps reflecting an original high pyrite content. However, none of these structures are significantly mineralised. Sub-circular airphoto features in these catchment areas were found to be related to granite bodies rather than to structural and/or hydrothermal activity. 8.2.2 DETAILED GEOLOGICAL MAPPING 8.2.2.1 Long Hill ‘The prospect occupies the northern flank of an elongated ridge (Long Hill) with relief of some 70 m from plain level to summit, and slopes of up to 30°. An origin (10 OO0N, 10 000E) was selected at the western end of the ridge and a base line bearing 120° magnetic was pegged from 9100E to 10 37SE with cross lines at 50 m intervals. Thus, known outcrop of gossanous veins and associated country rock alteration extends the full length of the grid, with minor vein development a further 200 m to the east, for a total strike Jength of at least 1.5 km, ‘The prospect is located in Siluro-Devonian Robin Hood Granodiorite consisting of grey to pinkish-grey, coarse grained, porphyritic rock, Overlying Mesozoic conglomerate and sandstone occurs at the top of the ridge and as large blocks or lag on the slopes. The prospect itself consists of a series of quartz veins trending 120° M and dipping gently to the north, with wall rocks of chloritised (rarely sericitised or kaolinised) granodiorite. The granodiorite is weakly kaolinised in places. 19‘The veins vary from massive white featureless quartz to fractured quartz with ferruginous: partings and stainings to intensely gossanous material with limonite and boxwork patches. There appears to be two principal zones of veining. The more outstanding of these forms subsidiary spurs and ridges on the side of Long Hill and sheds copiously downslope. A second parallel zone occurs to the north as sporadic outcrop and subcrop which is sometimes difficult to distinguish amongst the scree from the main zone upslope. {t is possible that another set of veins occurs further to the north again. ‘The whole zone of interest including veins, locally altered wallrock and a surrounding envelope of altered granodiorite, is up to 150 m wide. If vein orientations as measured are correct (mean dip to the north of 30 - 40°) this indicates a true thickness of up to 60 m. Detailed mapping suggests that the zones of veining may not be strictly separate and that there may be development of en echelon sets, In particular, while the prospect as a whole trends 120° M, most contacts and joints in the veins systems strike 080 - 090° M If the angular relationships of the veins and the surrounding zone hold true, the prospect gives the appearance of a relatively flat-lying left-lateral displacement, i.e., a thrust movement with the upper block moving predominantly laterally (westwards) rather than directly upslope. 8.2.2.2 Perseverance The prospect occupies a low, north-south ridge immediately west of an isolated mesa of Mesozoic conglomerate and sandstone. At its northern end it runs into a granite hill on which thin, east-west striking veins are currently being mined for gold (J.Barns, ML "Andrew", just outside the EPM). Total relief is of the order of 30 m, with hill slopes mostly 10 - 20° A local grid origin (S000N, 5000E) was selected near the middle of the prospect arca where it is cut by the WSW-ENE line of the original Perseverance Workings. A base line oriented 340° M was pegged from 4600N to 5350N (the boundary of the EPM as determined by GPS), with short offsets at right angles every 50 m. A staggered grid continues south of 4600N to 4400N/5350E, where the structure swings south-cast back towards the Long Hill area some 3 km away. “The prospect is located on the contact of the Siluro-Devonian Robin Hood Granodiorite (to the east) with the Proterozoic Digger Creek Granite (to the west). At the extreme south-east end of the system, it appears to be hosted entirely within Robin Hood Granodiorite The prospective structure consists of one ore more veins of varying composition including white featureless quartz, fractured quartz with ferruginous stains and partings, and gossanous quartz with large boxwork patches (Figure 9). Fresh disseminated pyrite and rare chalcopyrite were observed in a few places, most notably where the structure takes an east-west dog-leg at 4500N. In this same locality the veins dip 35° to the north, ‘compared to the more usual dips of 15 - 30° to the east over the rest of the prospect. Wall rocks show brecciation and/or quartz stockworking at several locations, and may be chloritised or rarely silicified.Over most of its length the structure consists of a single vein or group of veins up to 50 m wide: with structural dips in the order of 15 - 30° and outcrops mainly forming a dip slope, this could represent a true thickness of less than 10 m. In the northern section, the apparent width reaches 100 m and there are indications that more than one group of veins may be present. However, alt outcrop and subcrop is located on a dip slope, and it is quite possible the observed pattern has been caused by a single vein. Several vein outcrops and joint surfaces show cast-plunging slickensides and plucking features which indicate that the structure is a thrust with the top block moving west. South of 46000N the structure trends generally south-east (roughly 120° M) with a short section around 4500N striking at 080° M. In this “dog-leg", a vein dip of 35° to the north was measured, which is similar to most dips at Long Hill. The vein continues for about 150 m to the south-east beyond the end of the present grid, at which point it can no longer be traced, so that its continuity with Long Hill can not be demonstrated. 8.2.2.3 Patrick East Patrick East is a complex and scattered group of old workings trending predominantly east-west some 100 to 300 m south of a major airphoto lineament, It occupies the eastern fall of the watershed between the upper Percy River/Oaky Creek catchment to the east and the Waterbury Creek catchment to the west. Overall topography is gentle, but local gullies are deeply dissected and variation in relief is about 50 m. A grid origin (10 000N/10 000E) was established at about the centre of the workings. A base line oriented 090° M was pegged from 9550E 10 10 450E with short offsets at right angles at 50 m intervals. Outlying workings in the north-east of the prospect area were located simply by pacing and compass. The strike length of the workings is 900 m and their width reaches a maximum of 125 m. ‘The workings are in an area of foliated and pegmatitic rock attributed to the Proterozoic Digger Creek Granite. In places it is quite schistose, even shaly, in nature: it is suspected that there are rafis and wedges of roof pendant metasediments in the granite, North of the prospect, an airphoto linear is marked by a persistent rhyolite dyke and minor andesite. Within the prospect, mineralisation is of three styles (Figure 10): «The majority of the workings are developed on flatmakes of gently dipping veins of massive to intensely gossanous quartz. Much of the massive quartz appears to have been rejected by the previous miners perhaps indicating that higher grade mineralisation occurs in the selvages or in the more gossanous sections. In the westem part of the prospect (9950 to 97006), vein attitudes are variable: a few are flat or dip north but the majority dip south at 30 - 50°. They are also accompanied by thin sheeted veins and stockworks. In the centre of the prospect (9825 to 9950E), veining also has variable dips with a majority of northerly dips at 20 - 30°: these vein sets have not been as extensively worked. In the eastern part of the prospect (100S0 to10300E), the veins dip consistently to the north at 25 - 45° and, in at least one location, stack up as a series of massive sheets totalling more than 3 m in thickness«Zones of fracturing, jointing and minor veining with uncertain orientations occur predominantly in the central and extreme eastern parts of the prospect. They occur mostly in chloritised (rarely silicified or epidotised) country rock commonly showing copper staining. Gossanous quartz veins may or may not be associated with these zones. Disseminated copper sulphides and oxides occurs in quartz veins around 104008 along with float of similar material some 75 m south-east of the last of the obvious workings beyond the gridded area. The zones appear best developed in the northern part of the central section of the prospect, where several substantial shafts have been sunk near the crest of the ridge ‘Narrow, sub-vertical veins or thin stockworks with chloritic selvages trending 050- 060°. Ail workings along these trends are small, but the structures may be very persistent. The main zone of this sort starts at the east end of the western section of the prospect, forms a northern boundary to the central section, and continues on to the north-east away from the main workings. The shafts on the ridge, mentioned above, also lie along this structure. A second, sub-parallel zone some 125 m to the south cuts through the eastern section of the prospect. The inter-relationships and timing of the three styles of mineralisation are not clear. The airphoto linear may be the ultimate feeder zone but the overall system is more complex than a simple splaying out of subsidiary veins near surface. 823 ROCK CHIP SAMPLING 8.2.3.1 Long Hill Two rock chip samples (33516,33517 on Figure 8) assayed 0.06 ppm Au and BLD respectively. Sample descriptions are contained in Appendix 2 and analytical results are listed in Appendix 3 8.2.3.2 Perseverance Rock chip samples were collected along the Perseverance line of lode (33501 to 33515 in Figure 9). Sample descriptions are contained within Appendix 2 and analytical results are listed in Appendix 3. Sample 33504 returned the highest gold assay of 2.64 g/t Aw. 8.2.3.3 Patrick East Rock chip samples were collected from the eastern lines of lode (33518 to 33525 in Figure 10). Sample descriptions are contained within Appendix 2 and analytical results are listed in Appendix 3, Samples 33518, 33520 and 33525 returned gold assays of 10.9, 20.5 and 90.76 g/t Au respectively. 8.2.4 REVERSE CIRCULATION PERCUSSION DRILLING Rowe Enterprises of Charters Towers were contracted to complete a programme of reverse circulation percussion drilling (RCPD) using a UD 650 dual purpose rig with a face sampling hammer. Samples were collected at 1 m intervals and composited to 2mintervals using a pipe sampler. Approximately 10% replicate samples were collected Samples were dispatched to Australian Laboratory Services in Townsville for analysis. 8.2.4.1 Long Hill Six RCPD holes (LH 1 to LH 6) were completed at the Long Hill Prospect for 373 m (Figure 8). Geological logs and analytical results are contained within Appendices 4 and 5 respectively. No geochemically anomalous gold assay results were retumed clearly demonstrating the non-auriferous nature of the quartz structures at depth 8.2.4.2 Perseverance Four scout RCPD holes (PV | to PV 4, for 290 m) were completed to test the complex body or bodies of altered granite and quartz breccia with substantial volume potential (Figure 9). Geological logs and analytical results are contained within Appendices 4 and 5 respectively. A single intersection of 2 m grading 1.58 g/t Au in PV 1 has indicated a patchy gold distribution within the mineralised structure. 8.2.4.3 Patrick East Seven scout RCPD holes (PE | to PE 7, for 426 m) were completed to test the multiple shallow dipping quartz tode systems which had returned rock chip assays up to 90.76 g/t Au (Figure 10), Geological logs and analytical results are contained within Appendices 4 and 5 respectively. Only two intervals with assay results greater than 0.5 g/t Au were recorded. The disappointing drilling results compared to the surface rock chip assays may have resulted from an enhanced and patchy distribution of gold near-surface owing to supergene processes. 9.0 CONCLUSIONS «Air photo and Landsat interpretation, reconnaissance geological traversing, rock chip sampling and stream sediment panning isolated a number of target areas, along with those generated by previous explorers. Three of these target areas were tested by drilling. The remaining target areas contained no obvious signs of mineralisation or alteration, or contained mineralised structures which was considered too small or low grade to warrant further investigation «Reverse circulation percussion drilling of the Long Hill, Perseverance and Patrick East areas resulted in sparse mineralised intersections of low grade. The high grades retumed from surface rock chip samples demonstrate either the patchy nature of the gold mineralisation, the effects of supergene enrichment, or a combination of both, ¢ Although the entire area of the EPM has not been traversed by foot, most geochemical and structural target areas have been visited in the field and sampled at densities appropriate to the geology and outcrop. The potential for significant, undiscovered, outcropping mineralisation in those areas not directly traversed is considered to be low. 2-000 23