Kalgoorlie North Gold Project
The Kalgoorlie North Gold Project is located 45km north of Kalgoorlie in Western Australia and covers 98 km2 of granted
mining and prospecting leases over 25 kilometres of strike of the Bardoc Tectonic Zone. The tenements extend north from Norton
Goldfields Limited’s Paddington Gold Operations to the south of Aphrodite Gold Limited’s Aphrodite Deposit.
Historic gold production from the Bardoc Mining Centre in the central part of the tenements occurred from the underground Zoroastrian
Mine in the late 1890s to early 1900s and from the Zoroastrian and Excelsior open pits mined by Aberfoyle Gold Pty between 1987 and 1991.
Open pit production was 200,000 tonnes grading 2.47g/t Au from the Zoroastrian Pit and 2,020,000 tonnes grading 1.5g/t Au from the
Excelsior Pit for a total of 2,220,000 tonnes at 1.6g/t Au for 113,000ozs of gold.
Previous exploration on the Project area has identified structurally and lithologically controlled gold mineralisation in numerous
deposits and prospects associated with generally N to NNW trending shears and high grade cross cutting structures.
Five main NNW trending shears are recognised within the tenements but during 2009 and 2010 the Company has primarily focused
drilling programs on the Excelsior Shear. This is a major structure up to 80m wide and extending for over 6km within the tenements.
The mineralised zone at the Excelsior deposit is 10 to 30m wide with high grade shoots plunging moderately to the south.
Resource Definition Program
The Kalgoorlie North Project covers multiple structural targets within the 25 kilometres of strike of the Bardoc Tectonic Zone and
widespread gold mineralisation is hosted on at least five persistent NNW trending shear structures within the Company’s tenements.
Excelsior has an ongoing program of prospect review and resource modelling utilising an extensive historical drilling database to
delineate gold resources and prioritise drilling targets.
Current programs are focussed on delineation of shallow resources amenable to open pit extraction and toll treatment.
Review of more than 50 known prospects within the Kalgoorlie North tenements is in progress in order to prioritise drilling
targets for campaigns in 2011.
To date the Company has established resources in 15 locations within the tenements and has identified 8 immediate resource development
targets with combined resources of 1.99Mt @ 1.7g/t Au for 106,700ozs (at 0.6g/t Au cut) for modelling and drill testing.
Total Kalgoorlie North Project Indicated and Inferred Resources are:
11.79Mt @ 1.50g/t Au containing 568,800ozs at a 0.6g/t lower cut-off, or
8.21Mt @ 1.80g/t Au containing 476,600ozs at a 1.0g/t cut-off
| 0.6g/t | 6.66 | 1.46 |
313.5 | 5.13 | 1.55 |
255.3 | 11.79 |
1.50 |
568.8 |
| 1.0g/t | 4.76 | 1.73 |
264.2 | 3.45 | 1.91 |
212.4 | 8.21 | 1.80 |
476.6 |
Kalgoorlie North Gold Project Resource Summaries (April 2011)
| Excelsior | 4,147 |
1.49 | 198.4 | 1,173 |
1.39 | 52.5 | 5,319 |
1.47 | 250.9 |
| Lochinvar | 448 | 1.74 |
25.1 | 60 | 1.70 |
3.3 | 508 | 1.74 |
28.4 |
| Three Star | | 92 |
2.26 | 6.7 | 92 |
2.26 | 6.7 |
| Ellen Pearce | | 35 |
1.75 | 2.0 | 35 |
1.75 | 2.0 |
| Zoroastrian | 1,871 |
1.34 |
80.7 | 1,478 | 1.20 |
57.1 | 3,350 | 1.28 |
137.8 |
| Navan | | 76 |
1.61 | 3.9 | 76 |
1.61 | 3.9 |
Jackorite
(1.0g/t cut) | |
53 |
4.68 | 8.0 | 53 |
4.68 | 8.0 |
| Castlereagh | 194 |
1.48 | 9.2 | 13 |
1.29 | 0.5 | 207 |
1.47 | 9.8 |
| Nerrin Nerrin | |
94 |
2.85 | 8.6 | 94 |
2.85 | 8.6 |
Big Blow Sth
(5.0g/t cut) | |
28 |
9.13 | 8.4 | 28 |
9.13 | 8.4 |
| Eldorado | |
252 |
1.97 | 16.0 | 252 |
1.97 | 16.0 |
| North Talbot | |
662 |
1.67 | 35.6 | 662 |
1.67 | 35.6 |
| North Duke | |
706 |
1.12 | 25.4 | 706 |
1.12 | 25.4 |
| Bulletin South | |
363 |
2.01 | 23.4 | 363 |
2.01 | 23.4 |
Windanya
(1.0g/t cut) | | 42 |
3.0 | 4.0 | 42 |
3.00 | 4.0 |
Kalgoorlie North Gold Project — Resource Inventory (April 2011)
Kalgoorlie North Resource Development Targets
Note: Mineral Resources outlined on the Excelsior Shear in this plan are derived from resource modeling conducted by Ravensgate Resource Consultants and Excelsior Gold utilising recent and historic drilling information. The Resources are combined Indicated and Inferred Resources in accordance with the JORC Code stated at a 1.0g/t lower cut-off grade.
Excelsior Shear Resource Targets
The Excelsior Shear is a major NNW trending structure which has recently been one of the Company’s main resource definition targets.
Drilling by Excelsior has delineated significant resources in the vicinity of the Excelsior deposit and to the north along the Excelsior Shear Zone.
Drilling programs have been aimed at definition of shallow oxide resources which offer potential for early mine development and possible
toll treatment at near-by processing facilities.
Resources delineated on the Excelsior Shear total 4.60Mt @ 1.70g/t Au containing 252.000ozs of gold at a 1.0g/t cut-off, and the northern shear deposits at Lochinvar, Three Star and Ellen Pearce are currently being reviewed as potential sources of near term mineable shallow oxide resources.
| Excelsior | 3.18 |
1.69 | 172.8 | 0.84 |
1.6 | 43.6 | 4.04 |
1.67 | 216.4 |
| Lochinvar | 0.38 |
1.84 |
22.7 | 0.06 | 1.9 |
3.7 | 0.44 | 1.85 |
26.5 |
| Three Star | | 0.09 |
2.3 | 6.6 | 0.09 |
2.29 | 6.6 |
| Ellen Pearce | | 0.03 |
1.8 | 2.0 | 0.03 |
1.76 | 2.0 |
Excelsior Shear Resource Inventory (December 2010)
The main Excelsior deposit consists of broad mineralised zones within the 10m to 30m wide Excelsior Shear and contains
south plunging higher grade lenses. Existing drilling beneath the current pit has intersected wide mineralised zones
with intercepts including 15m @ 6.8g/t Au, 31m @ 4.8g/t Au, 13m @ 7.4g/t Au and 24m @ 4.4g/t Au demonstrating potential for extraction by bulk underground mining techniques.
Zoroastrian South
The return of “bonanza” gold bearing rock chip samples from quartz veins within the previously mined Zoroastrian open pit aided structural
modeling and definition of high grade resources beneath the existing pit.
Rock chip assay results include:
916g/t Au over 300mm true width (TW)
88.6g/t Au over 300mm TW
100g/t Au over 280mm TW
67.5g/t Au over 250mm TW
This sampling, coupled with geological mapping and existing drilling information delineated significant narrow (0.3m to 2m true width)
high grade gold quartz veins which are potentially amendable to underground mine development.
Historic drilling beneath the southern end of the open pit has returned significant intersections in mineralised quartz veins
including 1m @ 105g/t Au from 58m vertical depth, 2m @ 27.6g/t Au from 80m and
4m @ 11.3g/t Au from 84m.
A new three dimensional geological model of the historic drill data demonstrates that very high grade coarse grained gold
mineralisation is present. Narrow quartz/shear structures displaying multiple orientations are present with wider zones
(3-10m) occurring at flexures within individual structures and at intersections between structures. These orientations
have not been effectively tested by previous drilling.
A diluted high grade Inferred Resource has been calculated for four lodes at the southern end only of the open pit.
| 3.0g/t | 74,300 |
7.8 |
18,500 |
| 5.0g/t | 43,000 | 10.5 |
14,600 |
Inferred Resource cut to 50g/t Au.
The resource is not closed off as lack of drilling information to the south and at depth limits the resource estimate to a strike
length of 195m and a vertical depth of 45m below the base of the current pit (65m VD). Individual lode positions remain open down
dip/plunge and along strike to the south and there is excellent potential to significantly expand the resource with further targeted drilling.
This high grade resource is indicative of the higher grade structures present within the overall Zoroastrian mineral resource of
1.7Mt @ 1.77g/t Au (96,000ozs) at a 1.0g/t Au cut-off.
Zoroastrian North
Historic gold production from the Bardoc Mining Centre occurred in the late 1890s to early 1900s primarily from the underground
Zoroastrian Mine which produced over 56,690ozs Au from high grade quartz veins and was mined to a depth of approximately 120m.
The Main Lode in the northern end of the Zoroastrian Pit area was a major ore source in the Zoroastrian underground workings.
Historic drilling at the northern end of the current pit has also previously returned spectacular gold intersections including
9.8m @ 1746g/t Au and 6m @ 289g/t Au at a vertical depth of 67m. These results are excluded
from the southern high grade resource.
The west dipping Main Lode and related shallow dipping structures will be targeted with drilling programs to follow up and
aid interpretation of previous intercepts including 1m @ 89.5g/t Au from 71m VD, 1m @ 81.1g/t Au
from 55m and 2m @ 11.0g/t Au from 57m. There appears excellent potential to delineate further high grade
resources beneath the historical underground workings.
Development Targets
The Zoroastrian structural system is one of a number of strike extensive shears that have the potential to host both open
pittable and underground gold deposits. Resource modelling is progressing on other high grade targets at Jackorite, Big Blow
and Nerrin Nerrin as well as on the higher grade lenses within the large Excelsior resource.
The Company proposes to conduct open pit mining studies on eight mineralised zones with combined resources totalling
1.99Mt @ 1.7g/t Au for 106,700ozs at a 0.6g/t Au cut-off.
| Lochinvar | 448 | 1.74 |
25.1 | 60 | 1.70 |
3.3 | 508 | 1.74 |
28.4 |
| Three Star | | 92 |
2.26 | 6.7 | 92 |
2.26 | 6.7 |
| Navan | | 76 |
1.61 | 3.9 | 76 |
1.61 | 3.9 |
Jackorite
(1.0g/t cut) | |
53 |
4.68 | 8.0 | 53 |
4.68 | 8.0 |
| Castlereagh | 194 |
1.48 | 9.2 | 13 |
1.29 | 0.5 | 207 |
1.47 | 9.8 |
| Nerrin Nerrin | |
94 |
2.85 | 8.6 | 94 |
2.85 | 8.6 |
| Eldorado | |
252 |
1.97 | 16.0 | 252 |
1.97 | 16.0 |
| North Duke | |
706 |
1.12 | 25.4 | 706 |
1.12 | 25.4 |
Open Pit Mining Targets – Heap Leach/Toll Milling Evaluation
These deposits have not been previously mined and the majority are located within a five kilometre radius of the old Bardoc mill site.
Major resources in the vicinity of the previously mined Excelsior and Zoroastrian pits are subject to separate development studies.
These resources totalling 5.72Mt @ 1.70g/t Au for 312,900ozs of contained gold at a 1.0g/t cut-off are
regarded as medium term (2-3 year) development targets requiring specific development strategies which could include both open pit and
underground mining options.
| Excelsior | 3,182 |
1.69 |
172.8 | 839 | 1.6 |
43.6 | 4,021 | 1.67 |
216.4 |
| Zoroastrian | 1,048 |
1.78 | 59.9 | 649 |
1.8 | 36.5 | 1,697 |
1.77 | 96.4 |
Medium Term Development Resources – Open Pit and Underground Option Studies
Resource cut-off grades of 0.6g/t and 1.0g/t reflect conceptual treatment strategies involving toll milling and heap leach ore treatment
and new resource modelling is in progress to improve delineation of high grade zones within numerous deposits.
The multiple deposit styles and the extensive distribution of mineralisation within the Project present a variety of possible mining options.
Future targeted drilling programs are proposed on the currently defined resources to progress structural interpretations, metallurgical testwork
and resource upgrades to facilitate more extensive mining and development feasibility studies.