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Gulf Mines Limited

Ebagoola Project

Wollogorang Project

Nowa Nowa Project

 Ebagoola Project

 

EBAGOOLA GOLD PROJECT (NTH QLD)

The project area consists of one granted Exploration Permit for Minerals, four Exploration Permits for Minerals Applications, and three Mining Leases covering approximately 982 square kilometres of the Precambrian Coen Metamorphic belt. Gold was the only commodity mined in the district and was recovered mainly from workings in the Hamilton Goldfield in the Ebagoola-Yarraden areas, which are enclosed by the tenements.

Free gold occurs mainly in numerous single and multiple quartz veins, up to 1.5 m thick, that formed within Palaeozoic intrusive granitoid rocks and along or near the contacts of the granitoids with the metamorphics, particularly in the vicinity of the Ebagoola fault zone. The potential exists for a number of different styles of gold mineralisation within the project area which are discussed below.

Multiple Vein Type Mineralisation

Previous exploration in the area has demonstrated that the gold mineralisation occurs mainly in multiple event quartz veins developed in altered metamorphic
rocks or granitoids. Rock chip sampling by previous explorers and GML has shown that mineralized quartz reefs, containing erratic, high-grade gold values, are often surrounded by an altered envelope of lower grade material, for instance:

- 22 m averaging 0.6 g/t gold at Marks Reef, which has been traced for 2 km along strike.
- 50 m averaging 0.25 g/t gold at Never Mine. Previous scout drilling has also intersected approximately 20 m wide intervals of low-grade
gold mineralisation (1-2 g/t gold) at a number of other localities:
- Queenslander North - 16 m averaging 1.14 g/t gold.
- Random - 27 m averaging 1.68 g/t gold.
- Gold Mount -19 m averaging 1.64 g/t gold.

Ross Mining Ltd estimated a possible Inferred Resource at Queenslander North of 200 000 tonnes of oxidised material averaging 1.2 g/t gold to 50 m
depth from 12 drill holes. Mineralisation is open-ended in all directions.

Exploration of these vein systems will involve reconnaissance IP surveys to establish their lateral and depth persistence and scout drilling of resultant detail target areas along with infill drilling of known resources to increase their size and resource status.

Epithermal Vein Type Mineralisation

Ross Mining Ltd recognised discrete epithermalstyle veins at a number of localities in the tenement area (Figure 4) and a general overprint of the quartz reefs by epithermal-textured veins. The possibility that this overprinting is related to a younger magmatic event is supported by the frequent association of younger (Permo-Carboniferous) acid dyke structures with the known reef systems, the occurrence of gold mineralisation in a dyke structure at Random and gold mineralisation associated with the brecciated contact zone of a
Permo-Carboniferous intrusive plug at Spion Kop. The possibility of a younger auriferous epithermal event encourages exploration for the characteristically
erratic but high-grade epithermal styles of mineralisation (such as the Pajingo-Vera Nancy deposits in north Queensland) within the project
area (see Section 9). Epithermal overprinting of pre-existing reef structures could also be responsible for local grade increases and indicative of a
more-highly developed epithermal system at depth.

Initial exploration of these systems will rely on reconnaissance IP surveys to indicate hidden centres of mineralisation that will be tested by scout drilling.

Intrusion-Related Type Mineralisation

Similarities in geological setting and mineralisation styles have been noted with the giant Kidston deposit of northwest Queensland and the Donlin
Creek deposit of Alaska, both of which are considered to be the Intrusion-related style of gold deposits. A number of target areas have been delineated for ground follow-up using the Intrusionrelated exploration model and the results of the recent airborne geophysical survey which has outlined areas of altered and subsurface granitoids associated with brecciation, and/or anomalous stream sediment, soil and/or rock chip gold geochemistry. Most of the target areas fall within a major cross-cutting structural feature, the Flying Fox – Lapunya Linear zone, but a large untested feature has been outlined
in the Ebagoola area (see Section 9). This style of mineralisation has been largely untested in the tenement area and offers potential for both large
tonnage, low-grade deposits (Kidston) and low tonnage, high-grade deposits (Pogo, Alaska).

Exploration of these target areas will involve reconnaissance and detailed IP surveys to determine their depth potential followed by deep scout drilling.

Exploration Programs and Budgets

Exploration programs will initially involve geological mapping, geochemical sampling, reconnaissance and detailed induced polarisation (IP) and radiometric geophysical surveys and scout reverse circulation percussion and diamond drilling (7500 m in the first two years) of the detailed target areas. If initial exploration is successful during Year 1, this will be followed by delineation and definition drilling programs at priority target areas.

Although exploration programs have been designed for all initial target areas, exploration budgets are presented only for those targets within granted tenements.