Teal – Au


The project is located on granted Mining Leases M26/499, M26/621, M26/346, M26/549 and L26/261 ~11km northwest of Kalgoorlie in Western Australia.

Open pit mining commenced in late 2016 at the Teal deposit and ore is being processed 22km north at the Paddington mill which is owned and operated by Norton Gold Fields Limited.

Mining of an eastern cutback (Teal Stage 2) commenced in September 2017 and is being mined concurrently with Stage 1 to recover ~20,000oz at +3g/t Au from oxide and transitional ore by the end of March 2018.

The 2017 Teal JORC 2012 Compliant Mineral Resource Estimate was 1.49Mt @ 2.18g/t Au for a total of ~104,000 oz (above 1.0g/t Au lower grade cut-off and below a 20g/t Au upper grade cut-off).

The mineralisation is hosted within a north northwest striking sequence of felsic tuffs, porphyries and intermediate volcanics and has been defined over a strike length over 2km and in multiple subparallel steep dipping structures. All mineralisation is open and is indicative of a much larger mineralised system at depth possibly in the 2-5Moz range.

Similar to large deposits in the region (Superpit and Kanowna Belle) primary mineralisation at depth has a semi-refractory component whereby some primary gold mineralisation is occluded within sulphides including arsenopyrite and may require pre-treatment such as roasting or fine grinding to improve overall recovery by standard cyanidation processing. Metallurgical work conducted by Intermin to date indicates primary mineralisation is amenable to either of the above methods suggesting strong potential to process nearby if sufficient mineralisation can be defined.

RC and diamond drill intercepts at depth could support underground mining and include;
16m @ 4.06g/t Au from 73m , including 9m @ 5.37g/t (TRC1687)
15m @ 4.24g/t Au from 130m, including 7m @ 5.54g/t from 130m (TRC1697)
3m @ 12.04g/t Au from 80m (TRC1693)
3m @ 4.96g/t Au from 50m (TRC16116)
2m @ 14.15g/t Au from 72m (TRC16103)
2m @ 9.81g/t Au from 97m (TRCD16101)
61m @ 17.80g/t Au from 215.39m (TRCD1694)

Further deeper drilling is required to assess the potential for a larger underground Resource as the deposit is open in all directions. This is planned once the hydrometallurgy properties of the existing mineralisation are better understood.

Recent drilling immediately south of the current Teal pit returned significant shallow mineralisation and a feasibility study to evaluate the economic potential of the area is underway.

The Teal and Peyes Farm prospects occurs within a package of predominantly felsic volcanic rocks, 700m west of the Abattoir Shear ultramafic contact. Mineralisation at Peyes Farm outcrops and a series of shallow workings aligned in a north-south orientation occur over a strike length of 300m and targeted quartz-arsenopyrite veining.

These workings are thought to have been mined as far back as 1901, with production records only available for 1919-20 when 34.54 tonnes of ore was extracted at a grade of 10.8 g/t Au.

The Teal and Peyes Farm prospect occurs within a package of predominantly felsic volcanic rocks, 700m west of the Abattoir Shear ultramafic contact. Mineralisation at Peyes Farm outcrops and a series of shallow workings aligned in a north-south orientation occur over a strike length of 300m and targeted quartz-arsenopyrite veining. These workings are thought to have been mined as far back as 1901, with production records only available for 1919-20 when 34.54 tonnes of ore was extracted at a grade of 10.8 g/t Au.

600m south and strike parallel to the Teal deposit is a new discovery called Jacques Find which was discovered with deeper RC drilling beneath shallow low grade hits in late 2016.

The latest high grade intercepts returned;
5m @ 6.94g/t Au from 89m (JFRC1608)
6m @ 5.18 g/t Au from 143m (JFRC1605)
7m @ 3.47 g/t Au from 115m (JFRC1601)
6m @ 3.44 g/t Au from 122m and 3m @ 7.40 g/t Au from 134m (JFRC1607)

The Jacques Find and nearby Peyes Farm prospects within and adjacent to the Peyes Farm Shear lie approximately 600m subparallel to the regional Abattoir Shear (Figure above). The stratigraphy at Jacques Find is dominated by a steep dipping, north to north northwest striking sequence of felsic tuffs, porphyries and intermediate volcanics. A 1-7m thick black shale unit has been regularly intersected in the drilling and provides an important stratigraphical marker not evident at either the Teal or Peyes Farm prospects.

Mineralisation defined to date is located adjacent or close to the shale contacts and collectively provides a useful target for future exploration. The host rocks are strongly foliated with strong silica-carbonate-pyrite alteration associated with significant gold mineralisation. Mineralisation zones are affected and displaced by cross cutting faults, shearing and variable leaching profiles.

The Teal, Peyes Farm and Jacques Find mineralisation occur in sub parallel structures influenced by north east trending cross structures. The structures re poorly defined by drilling and represent a priority targets for larger higher grade orebodies than is currently defined. Combined the Company is targeting 3-5Moz at this project.

New RC drilling is scheduled to test exciting IP targets identified along strike from Jacques Find in November 2017.