White Mountain

The Granite Castle deposit on the western boundary of White Mountain has recently been drilled by others to confirm significant gold and silver in grades and tonnage of potential economic significance. In addition, at the centre of White Mountain is an intrusion of an Ordovician-Silurian granitoid which hosts a trend of deposits, namely the Diecon Mine (gold); Edwards prospect (antimony) and Northeast Workings (gold). These deposits lie along strike in a general east-west direction. In addition two granites, SDgul and SDgbg, which are both in contact with each other, and along which mineralisation has been reported, host numerous small gold deposits as well as small copper and antimony occurrences in the shallow subsurface.

White Mountain

An outcrop sample from the general area of the Jubilation workings. Mr. Campbell of I2M Associates, LL is in the foreground and Dr. Beams of Terra Search Pty Ltd. in the background.

Mineral Exploration

“After reviewing the historical mining and mineral exploration activities and associated company reports dealing with the known mineralisation within and to the west of the tenement area, we have concluded that the White Mountain tenement has substantial potential for mineralisation of potential economic importance.”

Historical Deposits

White Mountain is centred over a highly favourable area of the Lolworth region and includes several polymetallic historic mines and advanced prospects for gold, silver, copper, lead, antimony, nickel, and molybdenum, all of which have been the subject of intermittent exploration over the past 40 years. Major historical production to date is as follows:

The Diecon Mine (1910- 1916) produced 68 tonnes of ore for 17,400g (614oz) gold at 255.9 g/t. Edwards Mine (1915) produced 310 tonnes of antimony ore. Little Wonder Mine (1913 -1915) produced 17 tonnes of ore for 669g (24oz) at 29.4g/t. Sunday School Mine (1914) produced five tonnes of ore for 268g (10oz) gold at 53.6 g/t. Bradley’s Jubilation and Clements Copper were copper prospects and the Northeat workings a gold prospect.

Location and Infrastructure

White Mountain is located west-southwest of Townsville, Queensland approximately 300km via the Flinders Highway. It is accessed at various locations from the northern side of the main highway and covers an area of about 4,800 hectares (18.5sq miles).

Supporting transport infrastructure is available in Charters Towers, which acts as the hub for exploration in the general area, about 180km to the east via the Flinders Highway. The Mt. Isa to Townsville Railway runs parallel to the Flinders Highway heading east to Charters Towers and Townsville and west to Conclury and Mt. Isa. This railroad carries mined ore and concentrates from the Mt. Isa Mines, and more recently from mines in the Cloncury area to Townsville.

Extracts from CPR:

“After reviewing the historical mining and mineral exploration activities and associated company reports dealing with the known mineralisation within and to the west of the tenement area, we have concluded that the White Mountain tenement has substantial potential for mineralisation of potential economic importance.”

“…a few of the companies did conduct detailed surface sampling, some of which produced favourable results.”

Previous Exploration

A number of companies have been active in the general area. The first group consisted of the early miners of the 1800s and early to mid-1900s. The early explorers identified areas that remain of particular interest to present day exploration companies. These efforts were based on surface sampling and drilling to limited depths. Given the recent revival of gold prices many prospects are now being revisited.

The significance of the historical workings and recent exploration activities adjacent to White Mountain is that recognised shear zones in granite appear to be trending into the White Mountain EPM, especially in the southwest areas. This indicates the shear zones that occur in White Mountain are primary targets for follow-up exploration. The adjacent property reportedly hosts a JORC-compliant resource of 79,000oz of gold and 1.5m oz of silver located wholly within a 600m portion of a single, mineralised shear zone. The suggested target below the resource identified to date is projected by others to be about 350,000 tonnes amounting to more than one million oz gold and 21 million oz of silver or, assuming current precious metals prices, more than US$2bn in place, should such mineralisation be confirmed during drilling. This suggests that the White Mountain EPM offers favourable conditions for significant mineralisation of not only gold and silver, but also for other metals as well. Although the adjacent property to the west reported lead and zinc in addition to the gold and silver, White Mountain also appears to offer multi-metal targets involving sulphide mineralisation. These include antimony, copper, nickel, molybdenum, lead, zinc, and other metals, in addition to quartz-zone mineralisation associated with shear zones trending into White Mountain tenement from the west.

Those sites already known such as at Thalanga and West 45 Mines, about 60km southeast of White Mountain, and others cited in the CPR have since been investigated in greater detail. Discoveries in the Thalanga area were made as a result of the application of standard exploration techniques, such as surface reconnaissance, geological mapping, rock and soil sampling and various methods of aerial and ground geophysics followed by deep bedrock drilling and coring. With the recent advances in geophysics, especially ground magnetics systems, complemented by new satellite imagery and combined with new and revised models of mineralisation, and based on nearby activities, the Board has elected to acquire and vigorously explore White Mountain.

Strategy