Metal: Gold
Aurora Minerals’ Macraes West Project is 1173km2 in area and is located in the Central Otago region of the South Island of New Zealand, 150km northwest of the city of Dunedin. The Company’s permit abuts the north western boundary of the Macraes Flat mine and exploration permits.
Macraes Flat was discovered in the 1980’s and is now the largest producing gold mine in New Zealand with production of 175,000oz in 2003. Since commencement of open pit mining in 1990, approximately 1.68 million ounces of gold has been produced from a series of pits along the shear zone. Interestingly, historic (1890-1936) gold production at Macraes Flat was only 15,000oz from isolated high grade quartz veins.
Mineralized shears in this area can extend for many kilometres: 30km in the case of the Hyde Macraes Shear Zone and 15km for the Rise and Shine Shear Zone which hosts the old Bendigo gold workings (150,000 oz historic production). Aurora Minerals’ Macraes West Project lies directly between the Macraes Flat mine and the Bendigo workings.
Aurora Minerals’s geologists, in collaboration with Kenex Knowledge Systems, have interpreted the potential for extension of the Hyde Macraes Shear Zone through the eastern part of the permit for at least 10km of strike.
While exploration has been carried out on the Macraes Flat permits and at Bendigo, there does not appear to have been extensive and intensive modern exploration between the two. Aurora Minerals’ Macraes West permit covers this area.
Previous alluvial production for Aurora Minerals’ area includes 80,000oz gold from the Hamilton alluvial diggings.
The Company believes that the presence of the widespread placer deposits in the Cental Otago region coupled with the presence of a major deposit (the Macraes Flat mine) adds to the region's attractiveness for exploration. Parts of the postulated strike of the Hyde Macraes Shear Zone are under cover. The best potential for near surface gold mineralisation is in the approximately 20km of elevated terrain where the prospective unit – the Haast schist - is exposed or under thin cover.
Aurora Minerals/Glass Earth Joint Venture
(Aurora 30%, Glass Earth 70%)
Aurora Minerals received a report in late 2008 on the initial exploration progress at its Macraes West Joint Venture Project in the Otago District of the South Island of New Zealand. The project lies west of the 7.2Moz Macraes Gold Mine held by Oceana Gold.
Glass Earth Reports:
“The Aurora/Glass Earth JV land was highlighted by the Resolve airborne geophysical survey as a priority area for on-ground exploration.
In the Rock & Pillar zone, the geophysical survey revealed extensions of the Hyde-Macraes shear (host to the 7.2Moz, Macraes Gold Mine (Oceana Gold Limited)) and several other potentially mineralised shears to the south; the discovery of these features generated the delineation of the new individual projects, namely Cap Burn, Pig Burn and Cambridge Creek, three prospects which are now advancing to drilling stage. [Aurora note: Cambridge Creek lies outside of the JV area]
In the Rough Ridge Zone, the geophysical survey exposed a district of higher magnetic affinity with a higher volcanogenic component of the metamorphic pile. This coincided with anomalous regional gold geochemistry that focused attention on new hard rock gold mineralization at the SparrowHawk anomaly.
Detailed exploration led to very encouraging surface rock chips consistently assaying between 1 and 9g/t Au, with exceptional results (up to 69.2 g/t Au) in individual outcrops.
Two drill-holes testing this occurrence have provided anomalous but sub-economic gold results to date. The drilling has highlighted the accuracy of, and assistance provided by the combination of geophysical anomalism and gold geochemistry in a new hard rock gold area. Work is on-going in the SparrowHawk area. Glass Earth is very encouraged by its initial 12 months field work on this JV area, with a new hard rock prospective area at SparrowHawk and three new project areas on Rough Ridge, two of which lie within the JV area, providing focus for further exploration.” Maps of the project area showing the various prospects is attached. The following is a table of the best drill intercepts from the two diamond holes completed at Sparrowhawk. SHKDDH001 – drill depth 215m Depth From (m) Depth To (m) Sample ID Au (ppm) 113 114 GE24023 0.15 114 115 GE24024 0.34 145 146 GE24109 0.10 147 148 GE24111 0.80 149 150 GE24113 0.77 150 151 GE24114 0.19 151 152 GE24115 0.37 152 153 GE24116 0.15 153 154 GE24117 0.51 154 155 GE24118 0.10
Two drill-holes testing this occurrence have provided anomalous but sub-economic gold results to date. The drilling has highlighted the accuracy of, and assistance provided by the combination of geophysical anomalism and gold geochemistry in a new hard rock gold area. Work is on-going in the SparrowHawk area.
Glass Earth is very encouraged by its initial 12 months field work on this JV area, with a new hard rock prospective area at SparrowHawk and three new project areas on Rough Ridge, two of which lie within the JV area, providing focus for further exploration.”
Maps of the project area showing the various prospects is attached.
The following is a table of the best drill intercepts from the two diamond holes completed at Sparrowhawk.
SHKDDH001 – drill depth 215m
Depth
From (m)
To (m)
Sample ID
Au
(ppm)
113
114
GE24023
0.15
115
GE24024
0.34
145
146
GE24109
0.10
147
148
GE24111
0.80
149
150
GE24113
0.77
151
GE24114
0.19
152
GE24115
0.37
153
GE24116
154
GE24117
0.51
155
GE24118
SHKDDH002 – drill depth 293m
29
30
GE24166
0.13
53
54
GE24387
63
64
GE24175
0.64
75
76
GE24181
0.11
80
81
GE24344
0.39
106
107
GE24452
108
GE24190
0.14
241
242
GE24404
0.26
243
GE24405
0.67
244
245
GE24407
246
GE24408
259
260
GE24459
Glass Earth Limited (TSX V and NZAX code: GEL) has now spent the required $750,000 to earn its 70% equity in the project.
Aurora may now elect to fund its 30% interest share of the joint venture or dilute to 20% carried until commencement of a bankable feasibility study.
At a time in the future, prior to a decision being made on commencing a bankable feasibility study, Aurora may elect to claw back to a percentage interest in the JV of a total of 30% by reimbursing GENZL an amount equal to twice what it would have spent as if it had been contributing pro-rata for its 30%.