Red October - Au

    Underground

    The exploration activities at Red October present a unique opportunity to add significant value to the immediate mining operations as well as build a sustainable life beyond FY2018.

    The exploration program has now entered the next exciting phase, with the commencement of the +1,500m surface diamond hole. This hole will be the parent to two daughters and is aiming to test the Red October structures at depth.

    There is currently a production hiatus at Red October in the current quarter while exploration drilling is conducted from the base of the mine and Deep South reaches steady state output. Production is planned to re-commence at Red October in the December quarter 2016, with modest contributions of ~15koz anticipated in each of FY17 and FY18 (in line with the Carosue Dam five-year outlook). 

    Exploration drilling has also continued in the Red October structural corridor. An exploration hole (ROEX046) has been drilled into the footwall and has identified stratigraphic horizons previously unknown. A shear zone present on one of these contacts returned an anomalous result of 0.5m @ 5.11g/t. Further geological assessment of the hangingwall stratigraphic hole (ROEX040) has confirmed the magnetic high evident in the recently acquired ground magnetics correlates with the banded iron formation (BIF). This unit displays similar characteristics to the key stratigraphic unit which focused mineralisation in the upper 200m of the Red October deposit.

    Near mine exploration drilling has discovered a new lode (Lionfish) ~150m in the hangingwall of the Red October shear zone. Further drilling into the Lionfish Lode has demonstrated reasonable continuity and improved geological understanding. The drilling has shown that the lode is positioned on the top of a high MgO basalt flow. The subtle contrast in rheology has proven to be an effective mechanism to focus gold bearing structures. This relationship is common in the Red October environment. Results have been encouraging and, pleasingly, the drilling has also identified additional narrow linking structures where visible gold has been observed.

    Drilling highlights include:

    RORD119 - 4.3m @ 17.5g/t

    RORD105 - 0.3m @ 75.2g/t

    RORD106 - 5.8m @ 5.6g/t

    RORD109 - 0.3m @ 131.0g/t

     

    Treasure Island Exploration

    One kilometre north-east of the Red October mine is Treasure Island. The island is comprised of outcropping fine to medium grained gabbroic units and fine grained basalts. The mafic stratigraphy is locally intruded by small felsic porphyries.

    Recent detailed surface mapping has identified a number of shear zones that cross cut the stratigraphy in the same orientation as the "Anchor" structures at the Red October mine. The shear zones mapped in the south are believed to be the northern extension of the southern Anchor shear zone which terminates the mineralised Red October shear zone and the Marlin breccia vein.

    The mapping of these structures across the island identified a significant alteration halo, indicating that mineralising fluids may have passed through the shear zones. This prompted a rock chip and soil sampling program over the island to determine if the alteration signature was related to a gold mineralising event. The sampling has successfully identified a number of anomalous trends. Due to the fresh nature of the outcrop, an RC drill program is planned in H2 FY17 to investigate the source of the anomalous results.