excalibur mining corp ltd - juno annual technical report 2011...interpolation of block grade into a...
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
Title Page for Reporting under the NT Mining Act
Titleholder Tennant Gold
Operator Excalibur Mining Corporation
Tenement Manager M & M Walter Consulting
Titles/Tenements MLC45, 46, 47, 68, 154, 155, 284, 578, 579
Mine/Project Name Juno
Report title including type of report and reporting period including a date
Annual Technical Report Juno
Period 1/1/2010 – 31/12/2010
Personal author Peter Thomas
Corporate author Excalibur Mining Corporation
Company reference number Juno 2010
Target Commodity or Commodities Gold Copper Bismuth
Date of report March 2011
Datum/Zone GDA94 Zone 53K
250 000 K mapsheet Tennant Creek SE53‐14
100 000 K mapsheet Tennant Creek 5758
Contact details Postal address
Excalibur Mining Corporation
PO Box 1779 West Perth
Western Australia 6872
Fax 08 9322 3005
Phone 08 9322 8000
Email for further technical details [email protected]
Email for expenditure [email protected]
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
Annual Technical Report
Juno Project
MLC45, 46, 47, 68, 154, 155, 284, 578, 579
Period 1/01/10 – 31/12/2010 Author: P Thomas March 2011
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
Executive Summary During the reporting period Cube Consulting continued their commissioned re‐evaluation of Juno resources. Cube designed RC and Diamond drilling at Juno as a part of their commission. Drilling included 55 RC holes for 10944m and 16 diamond tails for 1282m. Also completed was a DGPS survey of hole locations and downhole gyro survey. Cube Consulting completed the review and reported mid year. The report resulted in a massive downgrade in the Juno resource.
Photo 1: Resource Drilling at Juno
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
Contents Summary 1. Introduction 2. Location 3. Tenement Status 4. Geology and Mineralisation 5. Previous Exploration 6. Activity during the Reporting Period 7. Current Resources 7.1 Juno Resource Methodology 7.2 M10 Resource Methodology 8. Future Work 9. References Tables 1. Tenement Status 2. Current Resource Statement 3. Previous Resource Estimate Figures 1. Project Location Map 2. Tenement Location and Geology 3. Regional Geology Map Photos 1. Resource Drilling at Juno 2. Historical diamond drilling at Juno 3. Diamond Drilling (Night shift) at the Juno project Appendices 1. Drill hole collar table 2. Drill hole survey data 3. Assay results 4. Geological Logs 5. Tenement Details 6. Cube Consulting report
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
1. Introduction This report details activities undertaken by Excalibur Mining Corporation Limited (“Excalibur”) upon the Juno Project in the period 31st January 2010 to 30th January 2011. 2. Location Juno is located in central Northern Territory, some 8km east south east of Tennant Creek (Figure 1). The area is accessed via a bitumen road from Tennant Creek.
Figure1: Project Location map
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
3 Tenement Status The Juno Project consists of nine tenements. A tenement status summary table is included as table 1 below. Current (March 2011) tenement details are presented in appendix 5.
Figure 2: Tenement Location and Geology.
TENEMENT AREA (HA) GRANTED MCC284 18 08/07/1989MLC45 16 05/01/1965MLC46 10 05/01/1965MLC47 16 05/01/1965MLC68 9 18/06/1968MLC154 5 17/02/1973MLC155 6 17/02/1973MLC578 9 28/05/1968MLC579 9 28/05/1968
Table 1: Juno project tenement status
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
4 Geology and Mineralisation The project area (Figure 3) is located within the Proterozoic Tennant Creek Inlier which is comprised of a turbiditic flysch sedimentary sequence abutting various volcanic rocks. In the Tennant Creek region, these rocks are typified by the Warramunga Group, which commonly strikes east‐west with variable dip. They have been intruded by various granites and deformed by the Tennant Event of 1850 Ma. Gold‐copper‐bismuth mineralisation has been found to be hosted by fine grained haematitic mudstones and shaley siltstones. The mineralisation is poddy in nature and is typically located within steep dipping hinge zones of regionally minor folds with localised shearing and accompanying chlorite and silica +/‐ dolomite alteration. These dilation zones of rich gold mineralisation are also typified by strong magnetite alteration below the base of oxidation. Above the base of oxidation the magnetite is chemically weathered to haematite. The distribution of the metals is variable, with no direct correlation between bismuth, gold and copper though some of the better known deposits display zonation. For example, it is common to find an outer magnetite/dolomite altered copper zone, a mixed magnetite‐silica bismuth zone and magnetite + gold zone in the core. The mineralisation style at Tennant Creek is generally small tonnage but high grade pods of iron rich mineralisation. Gold is also generally very fine grained in fresh deposits, but very coarse and nuggety in the oxidised deposits, such as Nobles Nob.
Figure 3: Regional Geology Map
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
5 Previous Exploration Previous exploration within some of these tenements has been extensive. The magnetic anomaly that was formed by the Juno deposit was discovered by the Aerial, Geological and Geophysical Survey of Northern Australia in 1936. Drilling was first conducted on this area by National Lead of America prior to 1960. In March 1960 Peko Mines N.L acquired the tenements from Merloo Gold Mines N.L, and commenced the diamond drilling programme that ultimately discovered the Juno deposit in DDH02 in October 1964. Of interest holes 1, 3 and 4 were all barren, whilst the deviation of hole two from its planned target saw it hit significant values that would have been missed had it stayed on course. Exploration drilling activity increased following the discovery hole intersection (12.19m @ 170.11g/t Au, 30.63g/t Ag, 0.13% Cu, and 1.39% Bi, from 229.21m), with a considerable amount of surface and underground diamond drilling being completed over the years. Ultimately the Juno gold mine produced 839,000 oz of Au from 0.45 Mt of ore.
Photo 2: Historical diamond Drilling at Juno
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
6 Activity during the reporting period Excalibur’s focus during the reporting period was an independent third party validation of Juno resources. Cube Consulting of Perth were contracted to perform the review. The company continued with a drilling program to redefine the resource in the immediate vicinity of the Juno ore body and the underlying M10 deposit. Drilling included 55 RC holes for 10944m and 16 diamond tails for 1282m. All drill holes were surveyed by licensed surveyor BBS Surveys Alice Springs and gyro surveyed by Direct Systems Melbourne. Geological logs, assays results and all survey data are attached. All on‐site activity at Juno concluded in April 2010. Cube consulting completed their review and the results were announced to the ASX on the 4th June 2010. By August 2010 the company had terminated technical staff. No rehabilitation was undertaken during the period.
Photo 3: Diamond Drilling (Night shift) at the Juno project
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
7. Current Resources
7.1 Juno Resource Methodology
Historical Geopeko drilling data was validated against the original hard copy logs and combined with the more recent EXM drilling data into a single drilling database. All the historical imperial drilling data has been transformed into MGA coordinate system by Cube using surveyed grid transformation points, and all relevant data converted to metric measurements.
A total of 42 Excalibur and 549 historical Geopeko holes (535 underground and 14 surface holes) were zone coded and used in the resource estimation. Most drilling was selectively sampled based on visual alteration and all intervals that were not sampled or assayed were assigned a nominal background value of 0.005 g/t Au, 0.0001% Cu and 0.0001% Bi. Geological interpretation was based on historical Geopeko alteration models which were modified with the more recent EXM drilling. Based on the interpreted geological model, four mineralised domains were defined on 5 metre sections.
A total of 5,179 two metre composites were used to interpolate the grade into a block model with suitable gold assay top cuts applied on a domain by domain basis.
Density was assigned to each alteration and mineralised domain based on 2,834 bulk density measurements undertaken by Excalibur and Northern Assay Laboratories. The assigned values for mineralisation were 3.3g/cm³ for Domain 100, 3.9g/cm³ for Domain 500 and 4.0g/cm³ for Domain 800.
Interpolation of block grade into a Surpac Block Model used Ordinary Kriging. Variography analysis and Qualitative Kriging Neighbourhood Analysis were utilised to identify direction of mineralisation continuity and variogram, and also search neighbourhood parameters.
The resultant grade block model (5mN x 10mE x 2.5mRL) was depleted by the 3D mining void as defined by original pay run mine plans and sections, with the stope and underground workings validated by 25 EXM drill holes.
The resource was classified as Inferred, taking into account the high level of historical assay data, the drill spacing, and low confidence in the continuity and location of the remnant mineralization and pillars associated with the historic stoping areas.
7.2 M10 Resource Methodology
A total of eight historical Geopeko holes and one Excalibur diamond drillhole were zone coded and used in the resource estimation.
The resource database is the same drilling database used for Juno estimate and all historical Geopeko drilling data was validated against the original hard copy logs by Cube, and transformed into MGA coordinate system and metricised.
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
Most drilling was selectively sampled based on visual alteration and all intervals that were not sampled or assayed were assigned a nominal background value of 0.005 g/t Au, 0.0001% Cu and 0.0001% Bi.
A nominal 0.5g/t Au domain was interpreted on 10m spaced sections based on historical Geopeko alteration models These boundaries were domained only where there was lateral continuity over more than 1 section and was defined by 2 or more drill holes. This resulted in 3 grade domains being defined.
A total of 265 one metre composites were use to interpolate the grade into a block model with suitable gold assay top cuts applied on a domain by domain basis.
Density was assigned to each mineralized domain based on the Juno bulk density measurements undertaken by Excalibur and Northern Assay Laboratories. The assigned values for the mineralized domains were 3.3g/cm³ with the background value set to 2.7g/cm³.
For blocks in the model (1mN x 10mE x 10mRL) that were informed by a minimum of 8 composites the grade was interpolated using Ordinary Kriging (OK), the remainder were assigned the average cut composite Au value for that domain. The variogram that was used was an omnidirectional variogram that was calculated for the 500 Au zone in the Juno estimation.
The resource was classified as Inferred, taking into account the high level of historical assay data, the drill spacing and the confidence in the grade continuity.
Deposit Tonnes (Inferred) Grade Au (Inferred) Oz Au (Inferred) Juno 1,322,000 4.4 185,300 M10 485,000 4.2 65200 Deposit Tonnes (Inferred) Grade Cu (Inferred) Tonnes Cu (Inferred) Juno 1,040,000 0.5% 5200
Table 2 – Current Resources Statement
The Cube re‐evaluation resulted in a massive downgrade in resources at Juno and M10. The previous reported resource is presented in table 3 for comparison. Deposit Tonnes Grade Au Oz Au Juno Indicated 1,101,300 18.68 661.488 Juno Inferred 501,850 10.68 172,340 M10 Inferred 1,117,000 6.57 235,971
Table 3 – Previous (2009) Juno Resource Estimate
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
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8. Future work In November 2010 Excalibur commissioned SRK Consulting to perform a preliminary exploration targeting and mineral inventory evaluation. Future work at Juno will be determined by the outcome of this evaluation. 9. References Edwards, G C, 1987. Structural and geochemical controls on alteration and mineralisation, Tennant Creek goldfield, Northern Territory, B Sc Honours thesis (unpublished), Monash University, Melbourne. Jones, P, 2006. Excalibur Tennant Creek Tenement Package Exploration Potential, August 2006. McNeill, R. D., 1965. Indicated Ore Reserves at Explorer 8, Peko Mines N.L. Internal Report, 28th April 1965. Sullivan, M.P., 2009. Combined Annual Report, Juno Project. For Excalibur Mining Corp. Ltd, February 2009.
Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
Appendix 6 MCC284
Tenure Type Mineral Claim (Central)Number 284
Date Effective 8/07/2004Status renew retained
Area 18 HECTGrant Date 8/07/1989
Expiry Date 7/07/2014Renewal Application Date
Renewal Grant Date 20/10/2004
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 09/12/1986 10Grant 08/07/1989 07/07/1999 10Gazettals 05/09/1990Renewal Application 24/03/1999 5Renewal Details 08/07/1999Renewal Grant 09/08/2000 07/07/2004 5Renewal Application 09/02/2004 10Renewal Details 08/07/2004Renewal Grant 20/10/2004 07/07/2014 10Advertisements
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
MLC45
Tenure Type Mineral Lease (Central)Number 45
Date Effective 1/01/2011Status renew retained
Area 16 HECTGrant Date 5/01/1965
Expiry Date 31/12/2010Renewal Application Date 17/08/2010
Renewal Grant Date
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 09/11/1964 21Grant 05/01/1965 31/12/1985 21Gazettals 22/01/1965Renewal Application 19/06/1985 5Renewal Grant 01/01/1986 31/12/1990 5Renewal Application 26/06/1990 10Renewal Grant 07/10/1992 31/12/2000 10Renewal Application 04/10/2000 10Renewal Details 01/01/2001Renewal Grant 06/03/2001 31/12/2010 10Renewal Application 17/08/2010 10Survey Plan 27/08/2010Renewal Details 01/01/2011
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
MLC46
Tenure Type Mineral Lease (Central)Number 46
Date Effective 1/01/2011Status renew retained
Area 10 HECTGrant Date 5/01/1965
Expiry Date 31/12/2010Renewal Application Date 17/08/2010
Renewal Grant Date
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 09/11/1964 21Grant 05/01/1965 31/12/1985 21Gazettals 22/01/1965Renewal Application 19/06/1985 5Renewal Grant 01/01/1986 31/12/1990 5Renewal Application 26/06/1990 10Renewal Grant 07/10/1992 31/12/2000 10Renewal Application 04/10/2000 10Renewal Details 01/01/2001Renewal Grant 06/03/2001 31/12/2010 10Renewal Application 17/08/2010 10Survey Plan 27/08/2010Renewal Details 01/01/2011
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
MLC47
Tenure Type Mineral Lease (Central)Number 47
Date Effective 1/01/2011Status renew retained
Area 16 HECTGrant Date 5/01/1965
Expiry Date 31/12/2010Renewal Application Date 17/08/2010
Renewal Grant Date
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 09/11/1964 21Grant 05/01/1965 31/12/1985 21Gazettals 22/01/1965Renewal Application 19/06/1985 5Renewal Grant 01/01/1986 31/12/1990 5Renewal Application 26/06/1990 10Renewal Grant 07/10/1992 31/12/2000 10Renewal Application 04/10/2000 10Renewal Details 01/01/2001Renewal Grant 06/03/2001 31/12/2010 10Renewal Application 17/08/2010 10Survey Plan 27/08/2010Renewal Details 01/01/2011
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
MLC68
Tenure Type Mineral Lease (Central)Number 68
Date Effective 1/01/2009Status renew retained
Area 9 HECTGrant Date 18/06/1968
Expiry Date 31/12/2033Renewal Application Date
Renewal Grant Date 10/11/2008
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 09/10/1967 21Grant 18/06/1968 31/12/1988 21Gazettals 26/06/1968Renewal Application 30/06/1988 10Renewal Grant 31/08/1992 31/12/1998 10Renewal Application 16/09/1998 10Renewal Grant 28/10/1999 31/12/2008 10Renewal Application 22/09/2008 25Renewal Grant 10/11/2008 31/12/2033 25Renewal Details 01/01/2009Survey Plan 27/08/2010
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
MLC154
Tenure Type Mineral Lease (Central)Number 154
Date Effective 1/01/2004Status renew retained
Area 5 HECTGrant Date 17/02/1973
Expiry Date 31/12/2024Renewal Application Date
Renewal Grant Date 22/09/2003
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 10/11/1972 21Grant 17/02/1973 31/12/1993 21Renewal Application 07/10/1993 8Renewal Grant 12/12/1994 31/12/1998 5Renewal Application 16/09/1998 10Renewal Grant 05/04/2000 31/12/2003 5Renewal Application 01/07/2003 5Renewal Grant 22/09/2003 31/12/2024 21Renewal Details 01/01/2004Gazettals
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
MLC155
Tenure Type Mineral Lease (Central)Number 155
Date Effective 1/01/2004Status renew retained
Area 6 HECTGrant Date 17/02/1973
Expiry Date 31/12/2024Renewal Application Date
Renewal Grant Date 22/09/2003
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 10/11/1972 21Grant 17/02/1973 31/12/1993 21Renewal Application 07/10/1993 8Renewal Grant 12/12/1994 31/12/1998 5Renewal Application 16/09/1998 10Renewal Grant 05/04/2000 31/12/2003 5Renewal Application 01/07/2003 5Renewal Grant 22/09/2003 31/12/2024 21Renewal Details 01/01/2004Gazettals
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
MLC578
Tenure Type Mineral Lease (Central)Number 578
Date Effective 1/01/2009Status renew retained
Area 9 HECTGrant Date 28/05/1968
Expiry Date 31/12/2033Renewal Application Date
Renewal Grant Date 10/11/2008
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 09/10/1967 21Grant 28/05/1968 31/12/1988 21Gazettals 05/06/1968Renewal Application 30/06/1988 10Renewal Grant 31/08/1992 31/12/1998 10Renewal Application 16/09/1998 10Renewal Details 20/08/1999Renewal Grant 28/10/1999 31/12/2008 10Renewal Application 22/09/2008 25Renewal Grant 10/11/2008 31/12/2033 25Renewal Details 01/01/2009Survey Plan 27/08/2010
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Excalibur Mining Corp Ltd - Juno Annual Technical Report 2011
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MLC579
Tenure Type Mineral Lease (Central)Number 579
Date Effective 1/01/2009Status renew retained
Area 9 HECTGrant Date 28/05/1968
Expiry Date 31/12/2033Renewal Application Date
Renewal Grant Date 10/11/2008
Holders InformationName Percent Type M & M WALTER CONSULTING ContactTENNANT GOLD PTY LTD 100.00% Current Holder
Transactional History InformationTransaction Type Effective Date Expiry Date Period Area (km2) Application 09/10/1967 21Grant 28/05/1968 31/12/1988 21Gazettals 05/06/1968Renewal Application 30/06/1988 10Renewal Grant 31/08/1992 31/12/1998 10Renewal Application 16/09/1998 10Renewal Grant 28/10/1999 31/12/2008 10Renewal Application 22/09/2008 25Renewal Grant 10/11/2008 31/12/2033 25Renewal Details 01/01/2009Survey Plan 27/08/2010