Exploration and growth is an integral part of the operations at Chatree. Attention over the past 18 months has focused on new exploration opportunities and Mineral Resource enhancement targets within the Chatree Mining Leases. This exploration formed part of a strategic exploration program within the mining leases that commenced in late 2012 and was designed to investigate a number of specific areas that had the potential to upgrade both Mineral Resources and ore reserves at Chatree and included:
Upgrading Inferred Resources for optimal long term mine planning;
Targeting extensions to currently known areas of mineralisation; and
Exploring deeper higher grade structures that may have the potential to extend the pit deeper or potential for underground mining.
Drilling Program Highlights
Exploration drilling within the Mining Lease north of A Pit identified a new area of broad high grade gold mineralisation confirming the continuation of the A East Structure north of the existing resource. Diamond drill hole 07559DD and a follow up diamond drill hole 55 metres to the north intersected a silicified sedimentary breccia. Significant results from these two holes include:
07559DD - 49.4m @ 4.3g/t Au from 227m (including 29.8m @ 6.25g/t Au from 246m);
07575RD - 35.8m @ 5.3g/t Au from 235m (including 3m @ 45.30 Au g/t from 255m);
As at the end of April 2013, the Mineral Resource estimate at Chatree using 0.30g/t cut-off grade totals 4.03 million ounces of gold and 32.8 million ounces silver in 188.3 million tonnes of rock. The upgraded resource, including depletion from production to the end of April 2013, represents an increase of 356,000 ounces of gold and 2,162,000 ounces of silver when compared to the June 2012 Mineral Resource estimate for Chatree at the same cut-off grade.
