Independent Report shows 2 to 4m oz Potential in Mixing Zone
The Nevera Main Zone is a low-sulphidation epithermal carbonate - base metal sulphide - gold deposit of the "mixing zone" style. Mixing zone mineralisation is deposited predominately as veins, stockworks and breccia matrix when deeply penetrating downwards circulating carbonated groundwater mixes with rising hot mineralised magmatic fluids derived from a deep intrusive source. Other Pacific Rim examples include Kelian in Indonesia and Hidden Valley and Wafi in the Morobe Goldfield of Papua New Guinea The deposit is hosted at the contact between the lavas, porphyries and breccias of the Crater Mountain Volcanic Complex and the underlying Chim Formation sediments. The deposit occurs as a broad flat lying auriferous zone straddling the contact juxtaposed with a more steeply dipping structurally developed auriferous zone, part of the Nevera Breccia Complex and Fault System.
A new wireframe representing the gold envelope has been interpreted by H&S based on the above geological principles, the diamond drilling (on 100m spaced sections) and a nominal gold cut off grade of 0.15g/t. The dimensions of this new mineral body are 750m of strike, 550m of dip and an average thickness of 150m to give an approximate volume of 60 Mm3.
19 drill holes have intersected this interpreted wireframe with an average gold grade for 801 x 4m composites of 0.7g/t.
Thus the Exploration Potential for the Main Zone at Nevera is defined as:
100 to 200Mt @ 0.5 to 1g/t Au for contained gold of 2.0-4.0 Million ozs using an average density of 2.65t/m3 and a gold cut off of 0.15g/t.
Anomalous Economic gold intersections were returned from drill holes outside the above identified Main Zone envelope, and these would be recovered during any open cut mining campaign. Further drilling with a view to converting the mixing zone mineralisation into defined resources is being planned during the Company's present exercise of consolidation and detailed evaluation of data. (The potential quantity and grade is conceptual in nature.
There has been insufficient exploration to define a Mineral Resource within the Mixing Zone and it is uncertain if further exploration will result in the determination of a Mineral Resource within the Mixing Zone.)
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About Crater Gold Mining
Crater Gold Mining Limited (ASX:CGN) is engaged in the exploration, evaluation and exploitation of gold and other base metal projects. The Company's segments include Croydon, Fergusson Island and Crater Mountain. The Croydon project consists of two sub-projects in far North West Queensland, the Croydon Polymetallic Project and the Croydon Gold Project. The Fergusson Island project consists of two gold exploration projects at Wapolu and Gameta on Fergusson Island, in Milne Bay province, Papua New Guinea. The Gameta Deposit lies within exploration license (EL) 1972. It is located on the northeast coast of Fergusson Island. The Wapolu Deposit lies within EL 2180. The Crater Mountain is an exploration and production project located in the Papua New Guinea Highlands approximately 50 kilometers southwest of Goroka. The project consists of three contiguous ELs, straddling the border between the Chimbu and Eastern Highland Provinces.
Crater Gold Mining