The Kailis deposit is located within the eastern Goldfields province of the Archaean Yilgarn Block and comprises a mafic and ultramafic sequence intruded to the west by a diapirically emplaced granitoid (Raeside Batholith). The sequence is locally intruded by felsic, porphyry and lamprophyre dykes. regional metamorphism within the greenstone sequence is mid-upper greenschist facies and locally amphibolite facies at the granite greenstone contact. The belt is characterised by north north-west trending techtonic lineaments with regional foliation trending approximately north-south, sub-parallel to lithological contacts, the granite greenstone contact and the Mt George Shear trend.
Weathering over the resource is intense and generally follows the shear zone down to a maximum depth of 80 to 100m. Much of the resource area is covered by 5-40m of alluvial cover. This cover consists of transported, ferruginous and polymictic sands and gravels which grade into a zone of sandy clays and brittle, kaolinitic clays. There are also some thin (1 to 6m) bands of puggy/plastic lake clays containing minor sands and gravels. These alluvial materials occur as channels that cut perpendicular to the main Kailis stratigraphy.
Gold mineralisation is hosted in a quartz-sericite schist within a broad, shallow to moderately dipping shear zone with a strike length in excess of 1,800m. Mineralised intervals are often narrow (3 to 8m) , but thicken to 15-20m in places. A 2012 structural study identified narrow (~1m), sub-vertical NE-SW trending, quartz vein sets in the nearby Trump pit which cross-cut the main shear, extending into the hanging wall. These may represent a major control on high grade mineralisation throughout the Kailis deposit. The best gold grades tend to occur in the oxide and transitional zones with lower grade mineralisation in the fresh rock.
Saracen is currently reviewing the local data which includes a number of small high grade opportunities adjacent to the Goldfields Highway.