The Company’s three Wishbone licences are located in the highly prospective Mingela area which lies within the eastern outcrops of igneous and metamorphic rocks of the Ravenswood-Lolworth Province. The Ravenswood Granodiorite Complex outcrops throughout the area and is bounded by a large shear zone structure along which much of the gold mineralisation in the region is located.
Wishbone II, III and IV
The area in and around Wishbone II, III and IV has been explored for decades, though many sites within the tenements remain underexplored and untested.
The northern boundary of Wishbone II is located approximately 8km by road to the south east of Mingela, and is located some 80km, via the Flinders Highway, south of Townsville, Queensland. It is a further 24km to the southern boundary where it crosses the road.
The Mingela region is characterised by widespread shows of mineralisation, an occurrence shared with many mining districts that host major ore bodies, suggesting the geological setting is conducive for a major ore body to be present in the general area beyond those already discovered (i.e. rediscovered) such as the Mount Wright and the Welcome Discovery areas. The larger historical deposits found at or near the surface include:
The Welcome Mine – produced 91,000g (6,737 oz) of gold in 3,658 tonnes of ore @ 25 g/t. North Queensland Resources estimate the mine has a current shallow pit resource of 250,000 tonnes @ 3.0 g/t gold. Grass Hut Mine (1887-1910) – produced 68,000g (2,397 oz) of gold in 2,014 tonnes of ore @ 33.76 g/t. New Caledonian Mine – produced 467,500g (16,500 oz) of gold at a grade of 30 g/t. Mount Sulphide Mine (1934-1940) – produced 1,860g (66oz) of gold with grades up to 29.06 g/t and 21,210g (748oz) of silver with grades up to 331.4 g/t. Althea/ Christian Kruck Mine – Gold Mines of Kalgoorlie estimates an indicated open-pit resource of 0.63m tonnes @ 3.1 g/t gold totalling approximately 2m grams (70,548oz) of gold. The City of Melbourne Mine – workings returned 56,700g (2,000 oz) of gold in 1,983 tonnes of ore @ 28.6 g/t. Kitty Cummings Mine – workings returned 4,650g (164oz) of gold in 340 tonnes of ore @ 13.68 g/t. King Solomon Mine – workings returned 2,737g (97oz) of gold in 45.7 tonnes of ore @59.9 g/t. Rose of Allandale No.1 SW Mine – workings returned 2,644g (93oz) of gold in 73.12 tonnes of ore @ 36.16 g/t.
As a result of recent discoveries at the Welcome deposit (located 10km west of Wishbone II) and others to the north-west, combined with new information made available regarding the Mount Wright Mine (20km south of Wishbone II) and the Mount Leyshon Mine (60km southwest of Wishbone II), a renewed interest has developed in the trend along which the Company’s Wishbone licenses are located.
The area in and around Wishbone II, III and IV has been explored for decades, though many sites within the tenements remain underexplored and untested. In addition, exploration activity over the last 20 years was undertaken using standard techniques including surface reconnaissance, geological mapping, rock and soil sampling, various methods of aerial and ground geophysics, bedrock drilling and coring.
The Company commenced an exploration programme at Wishbone II, which included geochemical sampling and ground magnetic surveying, and highlighted the potential for gold and multi-element mineralisation at the Oaky Mill and Hanging Valley Prospects. Both prospects are associated with known gold-bearing structures; in Oaky Mill's case, the structure is along a trend that runs northwest from the producing Mt. Wright gold mine to the south. The other is the NE Structure that trends toward the Blue Doe historical mining area. The next phase of exploration activity will look to further define Oaky Mill, Hanging Valley and the NE Structure for the purpose of establishing potential drilling targets.
The northern boundary of Wishbone II is located approximately 8km by road to the south east of Mingela, and is located some 80km, via the Flinders Highway, south of Townsville, Queensland. It is a further 24km to the southern boundary where it crosses the road. The Wishbone licences are accessed via the settlement of Mingela and the Burdekin Falls Dam Road.
The Mt. Isa-to-Townsville railway is approximately 8km north of Wishbone II and runs parallel to the Flinders Highway heading east to Townsville and west to Charters Towers, Cloncury and Mt. Isa. This railroad carries mined ore and concentrates from the Mt. Isa Mines, and more recently from mines in the Conclury area to Townsville.
Extracts from CPR:
“Based on the available reports and associated information we have concluded that the Wishbone II EPM is a high quality exploration target meriting serious attention by the WBG management.”
“There are numerous prospects on the subject property so many that the first task would be to identify the most favourable prospects for more detailed examination.”
The Board of Wishbone Gold has identified the gold and precious metals exploration and development sector as an attractive investment opportunity, and one which has the potential to create rapid and sustainable growth for shareholders. The Board is of the view that the gold price will continue to strengthen in the medium to long term, leveraged on rising demand from China and India, in addition to remaining a store of wealth and an inflation hedge during a prolonged period of economic upheaval.
The Company’s initial focus will be on four high quality gold properties in Queensland, Australia; however its longer term objective is to expand and become a consolidator of viable gold projects, in order to secure a significant precious metals footprint from which to develop and deliver shareholder value. In addition to Wishbone Gold’s existing projects, the Board is constantly reviewing and evaluating precious metals projects around the world.
Only those which meet the Company’s strict investment criteria will be pursued. These include projects located in investor friendly jurisdictions where the application of modern evaluation techniques to historical data can be used to enhance the quality of information and, along with primary research, establish more accurate valuations and a viable exploitation strategy.
The Company’s initial four gold properties, located in highly prospective and previously producing areas of Queensland, Australia, demonstrate these attractive parameters. The area is of particular interest to Wishbone Gold due to the considerable exploration data and information previously collected by majors and junior mining companies since the 1960s. The Board see this as a critical resource which can be reworked by taking advantage of recent technological advances, to provide new exploration targets.
Projects with relatively low exploration risk will be sought. These will include those where the asset is underperforming, undeveloped and/or undervalued; in the early stage of the development cycle; where the resource and/or the deposit has attractive fundamentals; and where the geology, extraction and processing is not expected to be overly complex. Primarily exploration or development stage assets will be targeted, but producing assets will be considered if the Board believes they offer significant potential for unlocking value.
Where appropriate, the Company will use outsourced geologists to provide exploration and management services. Management believe outsourcing allows Wishbone Gold to gain access to a high level of expertise and associated infrastructure at an economic cost.