Ashburton Gold-Copper Exploration Project · of copper, lead and silver has also been recorded in the Ashburton Basin, mainly from the Ashburton Downs copper deposits within the Project

Overview of the

Ashburton Gold-Copper Exploration Project

on behalf of

Australian Exploration Mining Construction Company Pty Ltd

By John Williams

Consulting Geologist

October 2019

Summary

Large mineral rich area available with numerous copper and gold occurrences up to 15g/t

gold and 20% copper.

Proximity to large gold mines (Paulsens 4Moz) and resources (Xanadu 0.5Moz)

Opportunity to discover numerous smaller deposits

Under-explored area due to remoteness, seasonality and difficult access. But proximal to

other mining infrastructure (Paraburdoo) and roads.

New interpretation of gold areas which could lead to potential new discoveries.

Opportunity to focus on improving accessing key sites for detailed groundwork.

Introduction

The Ashburton Gold Copper Exploration Project comprises Exploration Licence (Application) E

08/3113 which is registered in the name of AEMCC. E08/3113 is a graticular covering approximately

square kilometres.

The project area is approximately 1000kms north of Perth and 30kms southwest of the mining town

of Paraburdoo.

The topography of the project area varies from flat wash covered areas adjacent to large creek

systems that flow into the Ashburton River, to steep hill country. Much of it inaccessible to 4WD.

Historically much exploration has been helicopter-supported. The river system is prone to flash

flooding during the wet season, which with the high temperatures during summer make meaningful

access to the licence area difficult. Effective exploration is often restricted to between April and

November.

ASHBURTON GOLD COPPER

EXPLORATION PROJECT

Immediate access to the project is very good due to the Meekatharra – Ashburton Downs Road

running through the south of the tenement area. Numerous station tracks and tracks to historic

copper mines appear to provide access however they are in very bad condition to most sites of

interest. Rivers and creeks wash away tracks and some of the bush at times is impenetrable because

of dense vegetation.

ASHBURTON GOLD COPPER

EXPLORATION PROJECT

ASHBURTON GOLD COPPER

EXPLORATION PROJECT E08/3113

Regional Geology

The Ashburton Region is underlain by rocks of the Capricorn Orogen, a major tectonic zone between the

Archaean Yilgarn and Pilbara Cratons. The Ashburton Basin is a northwest trending arcuate belt of

Proterozoic sedimentary and volcanic rocks forming the northern margin of the Capricorn orogeny. Rocks

along the northeastern half of the project area belong to the Palaeoproterozoic 2446-1786Ma Wyloo

Group comprising low-grade metasedimentary and metavolcanic rocks. The unconformably overlying Blair

Basin is represented by the ca. 1806Ma metasedimentary and metavolcanic rocks of the Capricorn Group.

The Capricorn Orogeny also deformed and metamorphosed rocks of the Ashburton and Blair Basins,

giving them their characteristic NW-SE fold axis, shear and foliation trends and low-grade metamorphic

mineral suite.

The Late Palaeoproterozoic to Mesoproterozoic Edmund and Collier Basins together form the Bangemall

Supergroup, previously referred to as the “Bangemall Basin”. The Edmund Group is at least 4km thick and

consists of mostly fine grained siliciclastic and carbonate sedimentary rocks. It is younger than 1620Ma

and older than the ca. 1465Ma suite of dolerite sills which intrude it. The 2-2.5Km thick Collier Basin

disconformably overlies the Edmund Basin and consists largely of siliciclastic sedimentary rocks. Most of

the Collier Basin developed to the East, outside the Project area, at about 1400 to 1070Ma. An extensive

system of dolerite sills intrudes both the Edmund and Collier Group rocks and is dated at 1078 to 1070Ma.

Around 1070-755Ma an tectonic event deformed the Bangemall Supergroup, reactivating basement

structures as reverse faults.

Prospectivity Targeting

Criteria for targeting the area is as follows:

The tenement application area is in the heart of the Ashburton Goldfield.

The Ashburton Goldfield is comprised of Proterozoic rocks which host most of the largest

gold deposits for example in Australia at Tanami 20Moz, Tropicana 5Moz and Telfer 30Moz.

Recent major gold discoveries in the Ashburton Goldfield such as at Paulsens (4Moz) have

shown the region is under-explored.

The Ashburton Goldfield has a history of difficult access which has impeded the progress of

exploration since the first gold discoveries over 100 years ago.

The tenement area contains several reported gold occurrences.

There are also copper mines which is related to gold.

A suitably large area was available for application so that cost effective exploration to occur

Geoscience Australia (AGSO) have recently completed a deep seismic study of the area

which indicates:

o Archaean rocks may be emplaced deeply beneath some of the Ashburton.

o Faults under the tenement area have been interpreted as mantle tapping.

o Reactivation of such deep-seated faults can result in the formation of mineral

deposits such as at the Tanami, Telfer and Tropicana.

AGSO Seismic Study has three key findings in relation to the Ashburton Gold Copper Exploration

Project:

1. Baring Downs Fault interpreted as mantle tapping

2. Achaean rocks probably underlie Ashburton Basin

3. Very large magnetic anomaly exists under the project area

Nanjilgardy Fault hosts numerous gold deposits including Paulsens 4Moz. The Baring Downs Fault is

also mantle tapping and could also feed ancillary faults such as Blair and Beasley and which could be

the source for gold and base metal occurrences in the project area. Reactivation of faults during the

Proterozoic can result in the emplacement of subsequent gold and base metal deposits sourced

from deeper rocks including an Archaean basement.

“The aeromagnetic anomaly (red) could be caused by a very strongly magnetic unit such as the

Hamersley Group occurring at depth…”

“Deep-seated source, below strongly dismembered Ashburton Formation…”

(comments by AGSO Seismic Study)

Deep Seated Magnetic Source

E08/3113

The GSWA 1:100k geological map below indicates mapping is still not completed despite being

proximal to world class mines and deposits.

PROBABLE CONTINUANCE OF ARCHAEAN

ROCKS UNDER ASHBURTON

Collier Basin

ASHBURTON GOLD COPPER

EXPLORATION PROJECT E08/3113

Edmund Basin

Ashburton Basin

Project Geology and Mineralisation

The Project area is in the Ashburton Basin. The Ashburton Basin is represented by the Wyloo Group, a

12Km thick SE trending sequence of meta-sediments and meta-volcanic rocks, the upper sequences of

which are present in the Project area. Here, the Ashburton Formation comprises mudstone and siltstone

with lesser quartz-sandstones. Sands, silts and muds of the Capricorn Group were deposited

unconformably on deformed and metamorphosed Wyloo Group during the Capricorn Orogeny.

The plan below shows most of the area underlain by Proterozoic Ashburton formation

metasediments (cream colour). Occasionally overlain by Capricorn sediments. The green area is a

mafic intrusion, probably a dolerite sill as part of the Narimbunna dolerite which has intruded the

Ashburton Basin usually as northeast trending dykes.

The exploration project can be divided into three areas of interest.

Northern Gold Trend – Extending north-west from gold / copper occurrences identified by other

mineral explorers at Mt Elephant.

Middle Copper-Gold Trend (with or without gold) – The copper deposits mined in the 1960’s are

described as hydrothermal veins and gossans containing base metals. The copper trend was included

Capricorn Fm

Ashburton Fm Narimbunna dolerite

in the project area because copper occurs at many other localities in the region associated with gold

and may not have been explored for gold adequately.

Southern Gold Trend – Several gold occurrences occur in an area of prolific quartz veining.

Northern Gold Trend

Southern Gold Trend

Middle Copper- Gold Trend

Previous Mining and Exploration

The Ashburton Mineral Field has a long history of gold, copper, silver, lead and zinc exploration and is

among the oldest in the state. Several smaller prospects which were exploited for gold ±copper, silver and

lead are located nearby including the Soldiers Secret and Top Camp gold deposits. Small-scale production

of copper, lead and silver has also been recorded in the Ashburton Basin, mainly from the Ashburton

Downs copper deposits within the Project area and others in the region such as Kooline (Pb, Ag) and Bali

Hi (Cu-Pb-Ag) areas.

The Top Camp gold deposit, being one of the earliest discoveries in this region, is located just 10km south

of E08/3113. Top Camp had a reported production of approximately 10,000oz from alluvial and hard-rock

shaft mining from its discovery in 1889 until 1966. It is thought that official production figures do not

reflect actual production and an estimate of approximately 21,000oz has been made to reflect true

production from this locality. A single gold nugget weighing 76oz was found at Top Camp in 1893.

Immediately west is Soldiers Secret, a gold prospect discovered soon after Top Camp. This site has had

many anecdotally recorded alluvial gold finds, the details of which are not officially recorded and hence

no production figures are available for the Soldiers Secret gold camp.

In addition to these known resource areas, very fine and fine-grained alluvial gold and gold nuggets have

been collected by prospectors using metal detectors, dry blowing and panning from several creeks’

peripheral to and from within the Project area.

Copper for fertiliser was mined in the 1960’s from a few deposits in the middle of the project area.

In the seventies and eighties majors like BHP, Newmont and BP Minerals began to explore the Ashburton

Basin. This early exploration resulted in the initial identification of some significant deposits, such as Mt

Olympus located 30kms to the east. The true potential of these deposits was not discovered until juniors

such Sipa Resources International NL began more detailed exploration at Mt Olympus.

4Moz

50Koz

In the 1980’s Metana Minerals NL carried out a broad stream sediment sample survey. Homestake Gold

(Australia) Ltd (1987-90) followed on from this and located numerous quartz veins carrying significant

gold. The gold was in quartz veins sporadically dispersed over a large area with no continuity apparent.

During 2012-18, Northern Star Mining Limited who own and operate the 4Moz Paulsens Gold Mine have

carried out broadscale work in the region. A regional geochemistry evaluation study completed in 2016

provided several targets and anomalies in which to focus. A number of project areas were defined for

further evaluation including east of Soldier Secret and at Rhino which are within the tenement area. Field

investigations included geological mapping, rock chip sampling and later soil sampling and some RC

drilling. The Geoview diagram below shows the locations of sampling by previous mineral explorers over

the Ashburton Project tenement area.

Authors Site Visit

During September 2019 the author visited the area in an effort to ascertain any potential for the

Ashburton Project. Several sites were outlined for further detailed analysis.

Site No. E N Comments

01 543699 7405836 Rockchip assay 15ppm Au (NST) plus several other significant assays over 1km (NST)

02 542770 7407845 Rockchip assay 4.63ppm Au (NST) plus several other significant assays over 300metres (NST)

03 537591 7408550 Significant gold in soil anomaly up to 105ppb Au (NST) in similar structural and lithological environment to the above prospects

04 520488 7405375 Rockchip assay 7.16ppm Au 1km east of Wandarry Barite Prospect on adjacent tenement which assayed 13.23ppm Au

05 525952 7406469 Ashburton/Ivenish/Devenish Cu-Pb-Zn Prospect - Area of shallow excavations. Veins 10-50 cm thick. Veins extend a further 1.5 km to the East. Produced 122 tonne @ 13.974% Cu for copper fertiliser (1960)

06 526504 7406269 Ashburton Mining Cu-Pb-Zn Prospect 1963 837tonne @ 19.144%Cu for copper fertiliser (1963)

07 530092 7403079 Goobaroo Pool Cu Prospect – Small excavation for copper

08 539800 7401700 Ashburton Downs Cumming Cu Prospect – Production of 331tonne @ 15.927% Cu

09 513201 7391392 Rockchip assay 0.53ppm Au by NST

10 520100 7393800 Rockchip assay 16.4ppm Au by Balcome Pty Ltd

11 524236 7396233 Rockchip assay 2.3ppmAu from quartz vein

12 526778 7393576 Rock chip assay 7.6ppm Au from south of Prismoid Hill

13 526992 7395634 Prismoid Hill Gold Prospect - Anomalous pyritic quartz vein with gold assay values 1.9 m @ 1.85 g/t (0.5 m channel sample returned 7.6

g/t Au). Also 3 channel samples 350 m to the N returned 1.2 m @ 2.5 g/t Au for 60 m strike length. Au: Anomalous pyritic quartz vein with gold assay values 1.9 m @ 1.85 g/t (0.5 m channel sample returned 7.6 g/t Au). Percussion drillhole PHRC3 intersected 1 m @ 2.75 g/t Au at 39 m.

14 533131 7391742 Mafic intrusion with possible PGM potential

15 539548 7388621 7.26ppm Au Rockchip assay by Homestake Mining Ltd

Comments on Sites of Interest:

Site 01

Site 01 is the previous prospect originally found and explored by NST in 2015-18. After regional soil

geochemistry, NST honed-in on the prospect with further soil sampling to locate outcropping quartz

veins assaying up to 15ppm Au. The area plus one other 4kms to the north (Site 02) was drilled with

mixed results and the project was finally dropped.

Quartz vein near Site 01 with minor arsenopyrite assaying between 0.1 and 15ppm Au

Surface geochemistry outlines at Site 01 with multiple gold bearing quartz veins orange dashed lines.

Shallow plunging tightly folded mudstone shown in the photo above give clues to that mineralisation

plunges westwards

Quartz veins in the photo below are doubly folded into stacked s-folds, these provide a picture of the

probable architecture of mineralisation at Site 1. The view is to the west and quartz veins dip

Gold bearing

quartz veins

Geochem soil anomaly outline

northwards. However, the drill pads are on top of the ridge to the left and have most likely missed

their targets.

Diagram above shows the possible reason why the drill pads may have been positioned wrong. The

observer would have seen apparent south dipping quartz veins at base of hill below 15ppmAu

locality. However further north there is an exposure of ‘en echelon’ s-folded quartz veins with an

overall dip northward. Therefore, drillholes ARGRC 0016 to ARGRC0019 were probably drilled in the

wrong position and direction and completely missed any gold mineralisation.

Airphoto above shows interpreted north dipping gold mineralisation in yellow plus drillholes with

directions. Note holes 16 to 19 appear to be drilled in error totally missing mineralisation.

Holes in the wrong

place to hit target Plunge

Site 02

Rockchip sample 4.63ppm Au plus several other significant rockchip assays occur over 300metres

(NST). When visited by the author these were seen to be associated with a large quartz vein up to 2

metres thick.

The airphoto below shows the location and azimuth of drillholes by a previous mineral explorer.

Only AGRC005 intercepted weak gold mineralisation. Yet the results at surface indicate a 150metre

strike length of gold significant mineralisation. It is thought the reasons the previous explorers

drillholes did not intercept similar grades to surface grade could be for the following three reasons:

The drillholes were planned too far back from the vein or were too shallow.

The quartz vein pinches and swells and there is also displacement with cross-faulting which

can cause gold mineralisation to be sporadic;

Gold mineralisation may plunge shallowly in a north-westerly direction like at Site 01.

Therefore, most of the holes could have missed the gold mineralisation.

It is suggested here that the quartz reef be channel sampled across the top at regular (20metre)

intervals with a jack hammer to get a truer representation of the high-grade zone before drilling.

Area drilled by

previous explorer

Gold bearing

quartz vein

Soil Anomalies

From the airphoto it can be seen that most of the drilling is too far back from the vein and probably

missed the high-grade portion of the quartz vein; especially if it is plunging shallowly to the

northwest.

Shallow Plunge?

gold bearing quartz vein

Site 03

This is a significantly large soil anomaly which has had no follow-up. An access track from Site 02 is

required.

Site 04

Interestingly this site hosting small historic gold leases and a rockchip assay of 7.16ppm Au is on the

Middle copper trend and may show a direct relationship exists between the copper and gold in the

area. This site, when access is enabled remains a high priority target for follow-up.

Site 05, 06, 07, and 08

These copper mines occupy a broad trend which should be tested for gold once access is enabled.

Site 09

Surface sampling is required over a strike between the two rockchip assays of 0.53ppm Au and

1.32ppmAu. Follow sampling required here once access is enabled. See 1:100k geoplan below.

Site 10

Site of 16.4ppm Au rock chip by Bacome Pty Ltd (1997) and several other significant results were

obtained by Homestake (1990). Previous results were not duplicated in the short time spent at this

site.

Site 09: 1-kilometre long gold anomaly

Very thick quartz scree covers the surface for many square kilometres. The barren rock being more

resistant to erosion would mask surface expression of gold deposits. This may account for the erratic

nature of previous sampling which would occasionally find highly encouraging gold in quartz. For

example, previous mineral explorers have indicated several quartz samples up to 16.4ppm Au from

here but found little in the way of continuity.

The diagram above hypothesises barren ‘buck’ quartz scree masking possible gold bearing zones

beneath.

The thick blanket of scree covers tens of square kilometres.

Auger or RAB drilling is required to penetrate the underlying rock to test for gold.

Sites 11, 12, 13 and 15

These sites have the same thick blanket of buck quartz scree discussed at Site 10. Once access is

improved it is recommended that RAB drilling be utilised to test the underlying rock for gold.

Site 14

The 1:100k geological plan below shows the 4km by 2km sized mafic sill. Coordinates for further

sampling for gold, PGM’s and base metals are indicated.

Photo below shows part of the southern side of the mafic sill, the unnamed hill is seen rising 145

metres above the surrounding area.

Conclusions and Recommendations

Access to all sites of interest needs to be enabled before any effective exploration can take place.

Follow-up sampling was only effectively carried out at Site 01. Shows large, more than 650metre

strikelength of significant gold values. Drill and previous rock chip results indicate higher grades are

attainable. Architecture highly complex and needs to be further elucidated before further drill

programs.

It is envisaged the next stage of drilling will have at least three fences of drillholes inclined 60

degrees southwards. The blue lines are suggested drill fence position which is in the valley where an

alteration halo from the emplacement of an orebody may have increased weathering and erosion

here.

Despite the efforts of previous workers over the past 100 years, there has been very little

exploration in the area and so plenty of opportunity to follow up on the key sites of interest

described above and to generate more targets with systematic modern techniques. The initial focus

needs to provide good access for detailed sampling and mapping to be carried out. This would be

followed up with cost effective RAB drilling.

Further on the ground exploration will certainly lead to more gold being found.

F

F

The gold trends in yellow shown in the above diagram will provide excellent targets for a large

drilling program with a number of drill fences across strike.

References

A 28666 Metana Minerals, The Ashburton Project Final Report 1989

A 30064 Homestake Gold of Australia Ltd, Table Hill Project Ann Report, 1990

A53654 Bacome Pty Ltd, Ashburton Project, 1997

A 114522,115672 Northern Star Resources Ltd, Ashburton Downs Project, 2015-18

MARTIN, D McB. et al, (2005): GEOLOGY OF THE MAROONAH, ULLAWARRA, CAPRICORN,

MANGAROON, EDMUND, AND ELLIOTT CREEK 1:100 000 SHEETS. Department of Industry and

Resources.

BRIDGE, Peter J, Top Camp, Soldiers Secret & Dead Finish – The Ashburton Goldrush. Hesperian

Press, 2015.

THORNE, A. M. AND SEYMOUR, D. B. (1991): Geology of the Ashburton Basin Western Australia –

Geological Survey of Western Australia, Bulletin 139.

THORNE, A. M. AND TYLER, I. M. (2005): Geology of the Paraburdoo 1:100 000 Sheet –Geological

Survey of Western Australia, Department of Minerals and Energy, Explanatory Notes.