WILUNA WEST GOLD

Gold Pour

The Wiluna West Gold Project refers to the gold located on GWR's Wiluna West tenements.

GWR continues to review opportunities to achieve positive cash flow by mining portions of its JORC Code 2004 Mineral Resource of 3,478,000 tonnes at 2.3 g/t Au for an estimated 258,000oz Au (estimated at a 1 g/t lower cut off). This includes an Indicated Resource estimate of 46,000 tonnes at 3.5 g/t Au for 5,200 oz and an Inferred Resource estimate of 3,432,000 tonnes at 2.3 g/t Au for 253,000 oz. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

On 31 January 2017, GWR announced that it had entered into a non-binding Memorandum of Understanding (“MoU”) in relation to the mining and processing of ore from the Wiluna West Gold Project at the nearby Wiluna Gold processing plant, owned and operated by Blackham Resources Limited (“BLK”).  See announcement here

GWR continues with an aggressive work program that commenced during the December 2016 quarter.  The program has a dual focus;

•       To identify potential ”company making” gold deposits

•       To define potential deposits that can be mined and treated at the nearby Wiluna gold mill.

GWR announced that it will be commencing a 1,650 m Reverse Circulation (“RC”) drilling program at Golden Monarch, July 2017. See announcement here

At Golden Monarch, previous shallow drilling identified a Mineral Resource (JORC 2004, Indicated Resource of 46,000 tonnes at 3.5g/t Au and Inferred Resource of 685,000 tonnes at 2.3 g/t Au) over a strike length of 1.5 km. Studies of the mineralisation over a strike length of 500m have identified two south plunging shoots within the deposit that have a combined length of approximately 300m. The northern shoot has been tested to approximately 45m in depth and the southern to approximately 75m in vertical depth (see figure 1 below).

 figure 1

 (Figure 1: Long Section through Golden Monarch Deposit looking West)

 

The current drilling program aims to define these shoots down to a 120 m vertical depth and further test near surface mineralisation as the next stage in determining the economic feasibility of the project.

A comprehensive mapping and geochemical soil sampling program was under taken over the Bowerbird prospect and over a 4 km strike length of the Joyners Shear Zone between the Comedy King and Emu prospects.

The re-interpretation of the aerial magnetic data by Southern Cross Geoscience has identified several structural targets and this, combined with previous drilling and historical geochemical sampling, highlighted the Bowerbird prospect and the area between the Comedy King and Emu prospects as high priority target areas.

The geochemical soil sampling identified a number of anomalies (>10 ppb Au) that justify following up including 4 samples of >1000 ppb Au, including one sample of 6,612 ppb (6.6 g/t) and the Blob and Bowerbird anomalies.

The Blob is a large +10 ppb Au anomaly measuring at least 400 m x 400 m and at +30 ppb: 300 m by 200 m (Figure 2); which is also anomalous in arsenic. As Figure 2 shows (see figure 2 below), The Blob anomaly is significantly larger than that expressed by the Eagle deposit (JORC 2004 Inferred Resource of 489,000 tonnes at 2.4 g/t Au) and occurs at the junction of a major north–south trending shear zone and a cross cutting northeast trending fault. It is also located in a zone of demagnetisation. No drilling targeting gold mineralisation has ever been undertaken over the peak of the anomaly.

 

 figure 2

(Figure 2: Plan view of ‘The Blob’)