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

    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.