Beechworth Project (Victoria)
Exploration in the Beechworth Region has defined 2 lead GF scale projects; Hillsborough and Hurdle Flat – Rocky Point. Both feature well defined structures to support open cast and underground mining. Less advanced projects to be concurrently advanced; Bowman’s Forest with similar potential to the above, Stringer Hill and Happy Valley GFs.
The first of the 3 GFs have economic grade remnant ore identified in multiple structures with drill ready targets for resource definition. Exploration programs are designed to test targeted structures at depth, defining those for advancement to JORC resource definition.
Resource estimate of the two Lead Projects: 1,080,000-1,500,000 oz
Individual mine contributions from the 2 lead GF projects are calculated to 300 metres depth and are initially accessible off existing adits:
Hillsborough GF | 250,000 – 430,000 oz
Permits are in place for pre-production multi thousand lot bulk sampling. Initial production is available from a >60,000t broken at surface resource of battery sands and tailings to be followed by adit accessible remnants. Potential for a limited drill program to establish 170m of adit accessible backs from the Bon Accord structure to 4.3 m wide with a strike >200m.
Rocky Point – Hurdle Flat GF | 600,000 – 1,000,300m oz
The structural model for this project identifies numerous resource targets that provide potential for exploration to support a significant increase to this estimate. Significant near surface and adit accessible remnant resources are available from multiple projects. LGMA builds on previous exploration to develop a resource base for the Lead Projects.
Separate reports on the lead Rocky Point – Hurdle Flat and the Hillsborough GF projects detail the structural modelling that forms the basis of resource estimates and exploration targets. The west portion of the EL contains most hard rock sources including largest mines that have shed most of the Beechworth area alluvials that produced ~5m oz.
Exploration is being advanced over projects not sufficiently qualified for inclusion in current estimates and are detailed in the EL 4697 Beechworth Report. Four GF scale targets have a capacity to provide a major boost to above estimates. They have received scant attention from previous explorers and are summarised on page 6. Also summarised are ~50,000t of potentially economic tailings within 30Km of the Hillsborough plant site
The Hillsborough GF geological setting indicates a potential to host 500,000oz.
The GF extends over 2.5 kms along a regional fault extending from the Mt Stanley Granite massif to the south and runs parallel to the Kiewa Kancoona faults.
The Yakandandah Granites boarder to the east where sampling of intrusions record anomalous gold.There is potential for granite hosted ore bodies in the under lying intrusives and those along the easterly margin where the Taff project granitic dykes are located.
Ore body forming temperature – pressure gradients associated with intrusion and fault interaction can extend to great depths on the granite contact margins to provide considerable scale and depth potential. This project has a diversity of mineralised settings – 8 historic mine groups feature the following styles of ore bodies with multiple occurrences of each type:
Granitic dykes, fissure reefs, enriched beds, hornfels and stock works. Early production is supported by broken at surface resources of tailings and battery sands that grade from 1 – 4.5g/t.Remnant ore assessable from 800m of adit and drives in the Homeward Bound mine. A freehold property site within the pending lease area is available to fast track commissioning of processing plant. The plant will also provide satellite treatment of Rocky Point – Hurdle Flat bulk sampling – production and from other projects within the extended EL area.
Two key projects planned for development to follow production from surface resources and the mining of remnants identified underground in the Homeward Bound and those accessible to surface excavation in the South Taff. The Bon Accord is major resource target accessible from Homeward Bound underground workings with extension of existing drives.
A drill program to confirm resource extension to the adit level has approved Work Plans. The South Taff is 1.2Km to the south, the strike of mineralization exceeds 300m, is open north and south with surface sampling confirming a highly anomalous open zone (6.6m @ 2.72 g/t Au) with near surface channel sampling to 11.2 g/t.
The high grade core was only partly mined to the 45m (lowest) adit. Surface mining using an excavator can produce initial ore feed in the order of the grades indicated above.
There is potential to recommission the bottom adit for initial underground exploitation before decline access.
LGMA is the owner/operator of Exploration Licence (EL) 4697. Areas previously held in EL 4836 have now been amalgamated into EL4697. It covers advanced mining opportunities in the Beechworth area and following amalgamation extends to the east into mountainous terrain that has been subject to only limited exploration.
Previous exploration mainly re-evaluated areas of localised historic mining. LGMA has built on that through comprehensive historic review, regional/local scale mapping, sampling and magnetics to provide the basis for structural analyses. A predictive model has been developed from an understanding of ore body relationships with mineral corridors or trends.
The Hillsborough GF was an initial focus for LGMA with a mandate to achieve early production. It features broken ore at surface and remnants accessible off an existing adit. Subject to drill conformation; 170ms of backs from the major Bon Accord ore body can be accessed off the adit with ore available for surface excavation of the South Taff granitic dyke.
At the Rocky Point Homeward Bound a structural/predictive model has led to the identification of numerous drill targets and drill targeting geo-chem locations. They are based on the projection of structurally controlling faults and fault intercepts from detailed mapping, their relationship to strong appropriately positioned creeks and gully topographic features and known gold occurrences.
The Image clearly defines areas of high prospectivity that have the potential to significantly add to the resource estimates given early in this document.
The big time potential of the Beechworth project is for discovery of large sediment hosted, disseminated, sulphide deposits. Prospective host settings have been identified and await further geo-chem targeting ahead of drill testing.
LGMA has developed the project to a stage where the large resource targets have been identified and now require further development capital. This presents an opportunity for equity participation in a portfolio of highly prospective gold projects of scale. They include advanced, whole Gold Field targets that feature ore at surface, broken and in situ resources with the potential for open cast mining. Most projects also feature established adit access for early underground mining.