Two target areas (> 2 sq km) prospective for economic Cu-Au mineralization were identified from initial reconnaissance work, which included stream sediment sampling and rock chip sampling, namely: the Gradiste and Aldinac areas.
The Aljin do mine geology and underground development has been modelled in three dimensions using Datamine mining software to enable planning of drill holes to intersect similar mineralisation mined historically and within an associated silicified alteration zone encountered on surface and within underground development. IP geophysical traverses have been conducted across the Aljin do mine area to assist in drill hole targeting. Drilling is planned to target mineralisation below the historic mining levels during the late fall.
The Gradiste Cu soil geochemical anomaly (> 100 ppm Cu) has an area of about 3.4 x 1.0 km. Company geologists found outcropping copper mineralization (chalcopyrite, malachite in silicified and brecciated micro-gabbro and gabbro). Continuous rock chip sampling by Company geologists over 8 meters (four 2 meter samples, max 1.63 per cent copper) yielded an average of 0.77 per cent copper. The copper soil anomaly is also marked by anomalous Mo, Bi, W, Sn, Te and W. The geochemical signature of this soil anomaly is comparable to that found associated with intrusion related copper-gold mineralization.
Trenching in the Miljanina Cuka prospect, which located within the Gradiste area of Cu geochemical anomalism identified a number of narrow, and locally high grade (best results 0.5 meters @ 101.5 grams per tonne (g/t) gold, and 1.3 meters @ 35.7 g/t gold), zones of gold mineralization within silicified and tectonised micro-gabbros.
The work to date has included geological mapping, stream sediment sampling, soil sampling and rock sampling. A 200 x 200 m soil sampling survey was completed, and detailed orientation lines were undertaken across known occurrences. The results confirm a persistent Cu (100 – 2070 parts per million - ppm) and Mo (15 – 240 ppm) anomalism covering an area of about 2.5 x 0.75 km along a N-NW structural trend. Within this zone, gold is impersistently anomalous (100 – 1330 parts per billion - ppb). The geochemically anomalous area is marked by alteration (silicification, carbonate), mineralization (quartz veining with sulphides), and ductile deformation. The rock sampling yielded 8 samples in the 2 – 12.25 g/t Au and 6 samples in the 1 – 2 g/t Au. Stockwork quartz veining with malachite staining has been identified in the granodiorite.
Complex Bi-Cu-Au-Sb mineralization is hosted by quartz veins and structurally controlled zones of intense silicification over a strike length of 1100 meters. The silicification zone is up to 40 meters wide, with individual veins 0.2 to 0.5 m thick. Ore minerals include pyrrhotite, arsenopyrite, chalcopyrite, bismuthite, gold, scheelite, and sphalerite. There was minor production in the 20th century, with various historical sources quoting grades of 24 – 62 g/t Au, 4 – 6 percent Cu and 1 – 4 percent Bi. Reconnaissance sampling by the Company yielded 13 samples containing greater than 5 g/t Au, with maximum 70 g/t Au. Ground magnetometry, IP geophysics and detailed geological mapping and modelling have been undertaken in preparation for drilling.
Additional occurrences of high-grade gold mineralization occur in the area, including 50.4 g/t gold and 1.62 percent copper, and 28.2 g/t gold and 1.73 percent copper. Systematic continuous chip sampling across the mineralised structures yielded 1 meter at 5.44 g/t gold and 0.56 per cent copper, and 6 meters @ 3.76 g/t gold and 0.17 per cent copper.