Ballarat Exploration Update
Spectacular Gold Intersection
Castlemaine Goldfields Limited (ASX:CGT) announces results from exploration diamond drilling
on the Sulieman Line of mineralisation at its Ballarat Gold Project. These results are from the
Basking Fault Zone (BFZ) in the Llanberris Compartment and build on the knowledge gained
from exploration success in the adjacent Britannia compartment.
Sulieman Line of Mineralisation Highlights:-
* Spectacular gold intersection from CBU095 on the lower BFZ Fault (SUL2):
* 29.1 m @ 32.1 g/t Au from 230.7m,
including 6.95m @ 6.3 g/t Au from 241.05m – massive spur vein zone
and 9.3m @ 91.5 g/t Au from 250.5m – fault related massive quartz
The CBU095 hole is located at the northern end of the Sulieman North target (see Figure 1) and
lies approximately 135m west of the planned Lower Llanberris Decline. This decline is currently
being mined to access ore from the First Chance Line of mineralisation, with first gold
production planned to occur from this area in September this year.
The 29.1m interval comprises 70% quartz veining with the lower massive quartz section
associated with a strong west dipping fault zone. This lower fault zone can be traced 140m
along strike in existing drilling with the nearest hole, CBU054 45m to the south, containing 4.0m
at 8.1 g/t Au including 1.4m at 20.2 g/t Au (ASX: Sept 2010 Quarterly Report).
The horizontal width for the CBU095 quartz intersection is estimated to be approximately 21m
with height unknown. Follow up diamond drilling from the Lower Llanberris decline is now
planned to test this new and exciting gold target across approximately 40m of strike.
CBU095 was part of a three hole program to test the BFZ within the Llanberris compartment. All
holes were drilled from the Sulieman Decline. CBU093 intersected the Seven Stars Fault before
the intended BFZ target with no result. CBU094 located the Basking Fault without significant
quartz and although assay results are awaited, these are not expected to be highly gold
bearing.
Managing Director Mr. Matthew Gill commented “This is one of the best underground gold
intersections recorded to date in the Ballarat goldfield, and reinforces our conviction that the
best area to explore and mine for gold at Ballarat is at the northern part of the goldfield.
As detailed in our ASX release on 26th May 2011, the Sulieman Line of mineralisation in
Britannia holds potential for a 3rd ore source, and it was predicted that extensions to that gold
mineralisation could be found in the adjacent Llanberris compartment. Now that we have
returned to drill the Basking Fault in the Llanberris, it is very pleasing that the results are
supporting our geological theories.
We are currently extending the existing underground decline and this will pass close by this
intersection. We now plan to conduct in-fill drilling with the objective of being able to add this
mineralisation into our near-term gold production plan. This represents a great upside for us, as
we progress on schedule towards first gold production in September this year.”
Matthew Gill
Managing Director and Chief Executive Officer
Information in this document which relates to Exploration Results, is based on information compiled by Mr Wessley Edgar, a
full time employee and Exploration Manager for Castlemaine Goldfields Limited, who is a member of the Australasian
Institute of Mining & Metallurgy, and who has the relevant experience as a Competent Person, as defined in the 2004 edition
of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code)’. Mr
Edgar, has given and has not withdrawn prior to lodgment, his written consent to be named in this Announcement as the
person responsible for the Exploration Results statements and to the inclusion of these statements in the form and context in
which they appear.
Samples are from NQ2 sized diamond core which were cut using geological boundaries. Given the high visible gold content in
CBU095, quartz intervals between 230.7m and 261.8m were whole core sampled, split post crushing, and assay grades
composited to a weighted average grade for all split samples. Thus all sample supplied to the assay laboratory was analysed.
Intervals are length weighted grade averages with <2m internal dilution although lower grades and greater internal dilution
may be included only where the dilution is predominantly quartz veining (80-100% quartz). No top cut off grade is used.
Minimum sample interval is 0.3m. Core loss or unsampled intervals are ascribed a gold grade of zero.
All results are Leachwell© cyanide leach (24 hour) 2000g analysis. A series of external standards and blanks are used to
assess laboratory assay quality control
ABOUT CASTLEMAINE GOLDFIELDS LIMITED
Castlemaine Goldfields Limited (CGT) holds significant exploration titles encompassing five substantial goldfields in Central Victoria. This land holding gives CGT access to two of the three largest historical gold producing areas in Victoria (totaling some 17 million ounces of gold). CGT has 100% of the Ballarat, Castlemaine, Tarnagulla, Berringa and Sebastian Goldfields, with approved Mining and Exploration Licences over the key areas.
The primary focus is to return the Ballarat Gold project to production at a targeted annualised rate of approximately 50,000 ounces per year by the 1st Quarter 2012. Resumption of mine development commenced in March 2011 with first ore planned to be accessed mid-year followed by gold production in the 3rd Quarter 2011. Results of the successful mining study were announced on 14th February 2011.
It is anticipated that with further exploration success a similar rate of gold production could also be sourced from the Castlemaine goldfield. Substantial value will be added to the Ballarat project from resource discoveries and development of CGT’s other existing Central Victorian projects.
The inaugural JORC Code Inferred Resource estimate for the Chewton Deposit, and remnants at the Wattle Gully
