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Re: BMY - Brumby Resources
1.
Executive Summary
Brumby Resources Limited has acquired the rights to two gold exploration properties, Frances Furness and Brilliant Well, in Western Australia. The Brilliant Well project also has potential for the discovery of base metal deposits.
The Frances Furness project located approximately 4 kilometres southeast of Marvel Loch gold mine south of Southern Cross, Western Australia consists of two granted tenements covering an area of 64 hectares. The tenements contain deposits of high grade gold mineralisation that have been subjected to small underground mining operations at various times during the last century. Brumby has entered into an option agreement to purchase a 100% interest in the tenements.
Frances Furness is located within the Marvel Loch – Yilgarn Star section of the Archean Southern Cross greenstone belt
which has produced over 5 million ounces of gold from open pit and underground mining operations. Regional stratigraphy consists of sedimentary and volcanic rocks which have been subjected to a complex history of structural deformation and metamorphism. It has been suggested that contrast in ductility between metasedimentary rocks and maficultramafic rocks has focused structural deformation and formation of mineral deposits in the region.
The tenements contain three old underground gold mines, Salvation and Frances Furness. Frances Furness, the principal mine, produced over 15,000 ounces of gold. At the Frances Furness mine, underground mining and exploration focused on two sub parallel mineralised reefs, East and West lodes. Gold distribution is erratic in its location in both lodes and confined to shoots. The quartz lodes plunge south at about 45 degrees and the overall outline of the mineralisation shows a distinct similarity with that at the Marvel Loch mine. A sub-vertical northwest trending fault terminates the lodes south of the main Frances Furness underground working. Exploration over the past few years has detected what may be the East and West lode systems offset to the east on the south side of the fault. However, attempts to drill define mineralisation in this area have so far been unsuccessful.
The underground operation mined a south plunging quartz lode up to 1.2 metres in width to a depth of 75 metres. High gold values of up to 7 ounces per tonne were reported in stope sampling during mining in the 1930s. Significant intrusions of flat-lying pegmatite are present in the upper levels of the old workings. Little work has been carried out since that time.
The Eric Lode, discovered immediately northwest of the Frances Furness line of workings in 1996, parallels the general geological trend, dips at 60 degrees to the northwest and has a strike length of about 225 metres. It is hosted mainly within weathered mafic and ultramafic rocks positioned along the west side of a pyrrhotitic metasedimentary unit that has been traced north to the Salvation workings. Significant assays in reverse circulation percussion (“RC”) drill holes include intersections of 2 metres at 14.8 g/t Au, 1 metre at 65.0 g/t Au, 1m at 135.0 g/t Au, 1 metre at 12.25 g/t Au, 2 metres at 33.85 g/t Au and 1 metre at 11 4.99 g/t Au. The Eric Lode is weathered to around 75 metres depth or deeper on some sections and primary mineralisation has yet to be found beneath the current drill intersections. In spite of the high grade intersections there is little correlation between intersections and extreme variation between gold values reported by different analytical methods point to a coarse gold component. Consequently, no resource estimate has been made even though there is sufficient indication that some material could be possibly be mined as a small satellite pit to other gold mining operations in the region.
Recently, a significant intersection of 3 metres at 14.6g/t Au, within a 29 metre interval of alteration and associated anomalous gold at Salvation, highlights the potential for blind parallel lodes within the Salvation-Frances Furness corridor. Although appearing to have limited strike length this mineralisation may have extensive plunge continuity.
Brumby intends to test a variety of targets with RC and diamond drilling and develop new drill targets through further surface
exploration of the project area. Drilling on the Eric Lode to better define the mineralisation, outline resources and test depth extensions is a priority. Follow up drilling of the recent high grade intersection at Salvation could lead to the delineation of a new high grade underground deposit.
Further drilling of the East and West Lode extensions south of the Frances Furnace mine fault could also lead to the delineation of a high grade underground deposit.
Brilliant Well, located approximately 40 kilometres north of the village of Leonora, consists of three exploration licence applications covering an area of 208 square kilometres in the Eastern Goldfields Province of Western Australia. All three tenement applications are held by Brilliant Gold Pty Ltd and subject to a joint venture agreement whereby Brumby can earn up to 85% interest in the tenements.
The project area covers greenstone and granite terrain of the Norseman-Wiluna greenstone belt. The Teutonic Bore and Jaguar copper – zinc deposits arelocated about 10 kilometres to the west of the project area and the Tarmoola and Thunderbox gold camps are located 20 kilometres to the southwest and 40 kilometres to the northwest respectively. All of these deposits are in close proximity to the Keith Kilkenny Tectonic Zone, a transcratonic structure associated with major
gold and base metal deposits.
The Brilliant Well tenements straddle the contact between the extensive Bundarra granite pluton and greenstone stratigraphy
to the west. The contact may in part be related to structures associated with the Keith Kilkenny Tectonic Zone. At least one
major north-northeast trending splay, the Deep Well Shear Zone, comes off the Keith Kilkenny Lineament and cuts through the
southern and central part of the project area and gold anomalies occur at several locations along the splay within the project
area. Most of the project area is covered by a thin to moderately thick cover of transported material and consequently, Archean stratigraphy and lithologies are interpreted from aeromagnetic data and minimal exploration drilling data.
The Brilliant Well project provides Brumby with the opportunity to explore a large area of Archean granite – greenstone terrain
within a mineralised province well known for its deposits of gold nickel and base metals. The property holding contains both
major and minor structures with associated gold and, to a lesser extent, base metal anomalies which to date have only been
lightly explored. Exploration carried out so far can be considered to be of a preliminary nature and Brumby has identified several areas where RAB and aircore drilling programs are warranted to define targets for RC drilling. These are mainly along
the Deep Well Shear Zone where drill traverses are currently at a wide spacing, previous anomalous results have not been
followed up and favourable areas identified from aeromagnetic data have not been previously tested.
In the vicinity of Charlie Chicks Well, previous explorers have identified similar stratigraphy to that hosting the Teutonic
bore copper- zinc deposit. Although EM 7. INDEPENDENT GEOLOGISTS’ REPORTS BRUMBY RESOURCES LIMITED : 31 surveys were conducted in the area and anomalies identified, no base metals were detected in drilling. Since that period of exploration the sensitivity of EM techniques has improved considerably and new surveys are warranted in this area.
Aeromagnetic highs in the vicinity of Madman Well and in the northeastern part of the tenement area may represent ultramafic bodies with potential to host nickel mineralisation. Brumby considers this area to be prospective for nickel sulphide deposits and intends to investigate this potential with reconnaissance aircore drilling to identify bedrock lithologies.
2.The Frances Furness project comprises two granted tenements, Mining Lease 77/25 and prospecting Licence 77/3464 located approximately 4 kilometres southeast of Marvel Loch gold mine, Western Australia. The tenements, covering an area of 64 hectares contain deposits of high grade gold mineralisation that have been subjected to underground mining operations at various times during the last century. Brumby has entered into an option agreement with the tenement holders Dusky Holdings Pty Ltd and Lithios Exploration Services Pty Ltd to purchase a 100% interest in the tenements for a cash consideration and issue of shares to the vendors. The vendors will retain a 2% net smelter royalty on any production from the tenements. Details pertinent to the tenements and the option to purchase agreement are provided in the Solicitors’ Report on Tenements and the Summary of Material Contracts in Section 10 of this Prospectus.
The project area is easily accessible from Marvel Loch by regional roads and numerous tracks cross the tenements providing adequate access within the project area. In general the tenement area has a flat topography and is moderately to heavily vegetated with eucalyptus and acacia forest. Open farmlands of the wheat belt lie immediately to the west.
1.
Executive Summary
Brumby Resources Limited has acquired the rights to two gold exploration properties, Frances Furness and Brilliant Well, in Western Australia. The Brilliant Well project also has potential for the discovery of base metal deposits.
The Frances Furness project located approximately 4 kilometres southeast of Marvel Loch gold mine south of Southern Cross, Western Australia consists of two granted tenements covering an area of 64 hectares. The tenements contain deposits of high grade gold mineralisation that have been subjected to small underground mining operations at various times during the last century. Brumby has entered into an option agreement to purchase a 100% interest in the tenements.
Frances Furness is located within the Marvel Loch – Yilgarn Star section of the Archean Southern Cross greenstone belt
which has produced over 5 million ounces of gold from open pit and underground mining operations. Regional stratigraphy consists of sedimentary and volcanic rocks which have been subjected to a complex history of structural deformation and metamorphism. It has been suggested that contrast in ductility between metasedimentary rocks and maficultramafic rocks has focused structural deformation and formation of mineral deposits in the region.
The tenements contain three old underground gold mines, Salvation and Frances Furness. Frances Furness, the principal mine, produced over 15,000 ounces of gold. At the Frances Furness mine, underground mining and exploration focused on two sub parallel mineralised reefs, East and West lodes. Gold distribution is erratic in its location in both lodes and confined to shoots. The quartz lodes plunge south at about 45 degrees and the overall outline of the mineralisation shows a distinct similarity with that at the Marvel Loch mine. A sub-vertical northwest trending fault terminates the lodes south of the main Frances Furness underground working. Exploration over the past few years has detected what may be the East and West lode systems offset to the east on the south side of the fault. However, attempts to drill define mineralisation in this area have so far been unsuccessful.
The underground operation mined a south plunging quartz lode up to 1.2 metres in width to a depth of 75 metres. High gold values of up to 7 ounces per tonne were reported in stope sampling during mining in the 1930s. Significant intrusions of flat-lying pegmatite are present in the upper levels of the old workings. Little work has been carried out since that time.
The Eric Lode, discovered immediately northwest of the Frances Furness line of workings in 1996, parallels the general geological trend, dips at 60 degrees to the northwest and has a strike length of about 225 metres. It is hosted mainly within weathered mafic and ultramafic rocks positioned along the west side of a pyrrhotitic metasedimentary unit that has been traced north to the Salvation workings. Significant assays in reverse circulation percussion (“RC”) drill holes include intersections of 2 metres at 14.8 g/t Au, 1 metre at 65.0 g/t Au, 1m at 135.0 g/t Au, 1 metre at 12.25 g/t Au, 2 metres at 33.85 g/t Au and 1 metre at 11 4.99 g/t Au. The Eric Lode is weathered to around 75 metres depth or deeper on some sections and primary mineralisation has yet to be found beneath the current drill intersections. In spite of the high grade intersections there is little correlation between intersections and extreme variation between gold values reported by different analytical methods point to a coarse gold component. Consequently, no resource estimate has been made even though there is sufficient indication that some material could be possibly be mined as a small satellite pit to other gold mining operations in the region.
Recently, a significant intersection of 3 metres at 14.6g/t Au, within a 29 metre interval of alteration and associated anomalous gold at Salvation, highlights the potential for blind parallel lodes within the Salvation-Frances Furness corridor. Although appearing to have limited strike length this mineralisation may have extensive plunge continuity.
Brumby intends to test a variety of targets with RC and diamond drilling and develop new drill targets through further surface
exploration of the project area. Drilling on the Eric Lode to better define the mineralisation, outline resources and test depth extensions is a priority. Follow up drilling of the recent high grade intersection at Salvation could lead to the delineation of a new high grade underground deposit.
Further drilling of the East and West Lode extensions south of the Frances Furnace mine fault could also lead to the delineation of a high grade underground deposit.
Brilliant Well, located approximately 40 kilometres north of the village of Leonora, consists of three exploration licence applications covering an area of 208 square kilometres in the Eastern Goldfields Province of Western Australia. All three tenement applications are held by Brilliant Gold Pty Ltd and subject to a joint venture agreement whereby Brumby can earn up to 85% interest in the tenements.
The project area covers greenstone and granite terrain of the Norseman-Wiluna greenstone belt. The Teutonic Bore and Jaguar copper – zinc deposits arelocated about 10 kilometres to the west of the project area and the Tarmoola and Thunderbox gold camps are located 20 kilometres to the southwest and 40 kilometres to the northwest respectively. All of these deposits are in close proximity to the Keith Kilkenny Tectonic Zone, a transcratonic structure associated with major
gold and base metal deposits.
The Brilliant Well tenements straddle the contact between the extensive Bundarra granite pluton and greenstone stratigraphy
to the west. The contact may in part be related to structures associated with the Keith Kilkenny Tectonic Zone. At least one
major north-northeast trending splay, the Deep Well Shear Zone, comes off the Keith Kilkenny Lineament and cuts through the
southern and central part of the project area and gold anomalies occur at several locations along the splay within the project
area. Most of the project area is covered by a thin to moderately thick cover of transported material and consequently, Archean stratigraphy and lithologies are interpreted from aeromagnetic data and minimal exploration drilling data.
The Brilliant Well project provides Brumby with the opportunity to explore a large area of Archean granite – greenstone terrain
within a mineralised province well known for its deposits of gold nickel and base metals. The property holding contains both
major and minor structures with associated gold and, to a lesser extent, base metal anomalies which to date have only been
lightly explored. Exploration carried out so far can be considered to be of a preliminary nature and Brumby has identified several areas where RAB and aircore drilling programs are warranted to define targets for RC drilling. These are mainly along
the Deep Well Shear Zone where drill traverses are currently at a wide spacing, previous anomalous results have not been
followed up and favourable areas identified from aeromagnetic data have not been previously tested.
In the vicinity of Charlie Chicks Well, previous explorers have identified similar stratigraphy to that hosting the Teutonic
bore copper- zinc deposit. Although EM 7. INDEPENDENT GEOLOGISTS’ REPORTS BRUMBY RESOURCES LIMITED : 31 surveys were conducted in the area and anomalies identified, no base metals were detected in drilling. Since that period of exploration the sensitivity of EM techniques has improved considerably and new surveys are warranted in this area.
Aeromagnetic highs in the vicinity of Madman Well and in the northeastern part of the tenement area may represent ultramafic bodies with potential to host nickel mineralisation. Brumby considers this area to be prospective for nickel sulphide deposits and intends to investigate this potential with reconnaissance aircore drilling to identify bedrock lithologies.
2.The Frances Furness project comprises two granted tenements, Mining Lease 77/25 and prospecting Licence 77/3464 located approximately 4 kilometres southeast of Marvel Loch gold mine, Western Australia. The tenements, covering an area of 64 hectares contain deposits of high grade gold mineralisation that have been subjected to underground mining operations at various times during the last century. Brumby has entered into an option agreement with the tenement holders Dusky Holdings Pty Ltd and Lithios Exploration Services Pty Ltd to purchase a 100% interest in the tenements for a cash consideration and issue of shares to the vendors. The vendors will retain a 2% net smelter royalty on any production from the tenements. Details pertinent to the tenements and the option to purchase agreement are provided in the Solicitors’ Report on Tenements and the Summary of Material Contracts in Section 10 of this Prospectus.
The project area is easily accessible from Marvel Loch by regional roads and numerous tracks cross the tenements providing adequate access within the project area. In general the tenement area has a flat topography and is moderately to heavily vegetated with eucalyptus and acacia forest. Open farmlands of the wheat belt lie immediately to the west.
