Lake Darlot Project

(E37/830) - Encounter 80%, Avoca 20% and (E37/978) - 100% Encounter

The Lake Darlot project comprises two tenements located north and east of the Darlot Gold Mine on the eastern margin of the Yandal Greenstone Belt (Figure 1). These tenements have been acquired to cover a previously unrecognized greenstone belt. Interpretation of regional magnetics has identified an extensive NNW trending structural corridor that 'horsetails' as it flexes along the margin of a major granite intrusion located in the east of the project.

Aircore drilling under shallow cover within E37/830 identified a previously unknown belt of greenstone lithologies including dolerites, basalts and felsic intrusions. The 1km x 200m spaced drilling (70 holes for 119m) across the 8km long greenstone belt intersected low level gold (250ppb) anomalism.

Figure 1: Darlot interpreted geology and TMI magnetics inset

Figure 1: Darlot interpreted geology and TMI magnetics inset

The southern tenement E37/978 was granted in March 2009. This tenement covers 212km 2 and captures the interpreted southern extension of the recently discovered greenstone belt. Interpretation of the regional aeromagnetics infers a southerly plunging antiform of greenstone in the centre of the tenement, terminating against the NNW structural corridor.

This geological setting is similar to the 4 million ounce Darlot Gold Mine and is considered prospective for gold mineralisation. Exploration commenced with a series of regional soil sample traverses and rock chip samples collected across defined structural targets. Previously unmapped outcrops of greenstone were defined within the area of magnetic complexity. The results from this program are pending and will be used to assess areas for follow up exploration.