ELLUVIAL GOLD MINE SUMMERY
Given the global economic downturn and high cost of drill programmes, we focussed on the near surface eluvial resource targets as they could be easily mined and processed at low cost and as well as being profitable based on a small scale mining concept it would provide cash flow to support continuing evaluation of the bedrock gold target at Ranongo as well as coltan, tin and other eluvial gold deposits.
To date 203 pits have been excavated covering 7 km of the target shear zone.
This pitting identified 5 centres of economic grade/thickness eluvial Au using a 0.2 g/m3 Au cut-off which were selected for bulk sampling targeting Inferred resources to support small scale mining operations. .
This suggests minimum potential Inferred JORC Inferred resource of + 20,000 oz Au over 2 km of strike tested to date.
The first resource area covers 303,200 m2 which is less than 5% of the total target area.
Conducted 204 test pits in a small area within Ranongo North.
Pits excavated at 100m line spacing and 50m pit spacing over three target areas.
The pitting defined a continuous elluvial gold mineralisation zone with 6,000 Oz “JORC” inferred resource at average grade of 0.6g/m3 within an area less than 10% of the entire Ranongo Ridge target.
Bulk sampling was conducted to test the actual resource size of the area for higher confidence level.
Results from the bulk sample pits indicated the grades are consistent with the test pitting.