Exploration and Development

The Company’s proposed strategy for the Gum Creek Gold Project comprises three key objectives:

 


Recent Exploration 

Key Points

The initial phase of the FY2018 reverse circulation (RC) drilling program nearing completion – 39 drill-holes completed for 4,969 drill metres at 13 prospects. Positive results from Psi, Toedter, Ray Charles and Shiraz South, including:

The initial phase of the FY2018 aircore (AC) drilling program is almost complete – 440 drill-holes completed for 20,118 drill metres at eight prospects. Better intersections include:

Ten 10 RC drill-holes planned at Ray Charles, Howards, Big West and Rail and 92 AC drill-holes proposed for Wahoo East, which will complete the initial FY2018 RC and AC drilling programs;

The initial FY2018 drill results warrant follow-up drill testing at several prospect areas, with priority targets at Psi and Toedter; and

A comprehensive review of the Gum Creek geochemical data base is underway.


Background

In the September 2017 Quarterly Activities Report, the Company advised that it had completed the initial phase of exploration on the 14 regional priority targets listed in the Company’s IPO Prospectus (October 2016). The Company also advised that it had commenced, in August 2017, follow-up drill testing on 20 new prospect areas generated as a result of the initial phase of exploration (Figure 1). The follow-up drill programs, using a combination of reverse circulation (RC) and aircore (AC) drilling methods, are expected to be completed early in 2018.  The majority of assay results from the drilling programs completed to date have now been received by the Company and are presented in this release.

Figure 1 Colour gravity image showing twenty prospect target areas

Figure 2 – Gum Creek regional plan showing areas with best RC and AC drill results


Reverse Circulation (RC) Drilling Program

RC Drilling – Progress

During the September 2017 Quarter, the Company reported on 27 reverse circulation (RC) drill-holes at 10 prospects areas.

Since then and prior to a scheduled break in the RC drill program in November 2017, a further six RC drill-holes were completed.  Drilling resumed in early December 2017, and an additional six RC drill-holes were completed at Wilsons South prior to a mechanical failure of the rig’s compressor system, which has delayed completion of the program until a replacement drill rig can be sourced in early January 2018. Ten RC holes at Ray Charles, Howards, Big West and Rail remain to be drilled to complete the initial FY2018 RC drilling program.

For the program to date, a total of 39 drill-holes for 4,969 drill metres have been completed at 13 prospects.  Drill-hole locations are shown in Figure 1 (hole co-ordinates are reported in Table 1, Appendix 1 of the ASX Announcement 21 Dec 17).

RC Drilling – Assay Results

As at the date of the September 2017 Quarterly Report, the Company had reported assay results for 19 of the 27 holes completed at that time. Final assay results (based on 1m RC assay split samples) for 33 drill-holes have now been received and are reported in Table 1, Appendix 1.  Initial composite 4m assay samples for the six RC holes completed in December 2017 are currently being analysed, with final assay results expected to be reported in the Company’s December 2017 Quarterly Activities Report.

All gold (Au) results in Table 1 are based on 30gm fire assays reported to a 1.0g/t Au lower cut-off grade. The 2012 JORC Compliance Tables to accompany these results are contained in Appendix 2.

The most encouraging assay results from the RC drill program were at Psi where fourteen drill-holes for 1,369 drill metres were completed (refer Figure 2 and Figure 3). The better intersections, which were previously reported in the September 2017 Quarterly Activities Report, included:

Other encouraging results returned were at Toedter, Ray Charles and Shiraz South.

At Toedter (Figure 2), a single RC drill-hole (GWRC482) targeting a coincident de-magnetised BIF and electromagnetic (EM) conductor, returned 1m @ 20.6g/t Au from 133m. The target tested by GWRC482 is one of five coincident BIF – EM targets associated with a 6km long, mostly buried BIF unit located to the west of the main Toedter prospect area.

At Ray Charles (Figure 2), one of three RC holes (TTRC439) drilled to target a series of Induced Polarisation (IP), EM and surface geochemical targets returned 1m @ 1.68g/t Au from 79m and 1m @ 2.53g/t Au from 83m. Four other planned RC holes at Ray Charles, in the vicinity of TTRC439, remain to be drilled early in 2018.

At Shiraz South (Figure 2), a single RC hole (TTRC429) drilled to target an IP anomaly located at depth immediately south of Shiraz, returned a final intercept of 1m @ 2.40g/t Au from 138m.

RC Drilling – Next Steps

The immediate focus for the March 2018 quarter will be to complete the remaining 10 planned RC drill-holes at Ray Charles, Howards, Big West and Rail in the initial phase of the FY2018 RC program.

Follow-up RC drilling is planned at Psi and Toedter. At Psi, an additional eight RC drill-holes are planned to test the shallow, south plunging banded iron formation (BIF) hosted mineralisation (Figure 3). The mineralised grades and thicknesses intersected at Psi are consistent with historical drilling intercepts and confirm the mineralisation is mostly confined to a single sheared structure with higher-grade lenses plunging more shallowly to the south than previously thought.

At Toedter, a combination of AC and RC drilling is planned to follow-up the high-grade intersection in drill-hole GWRC482, and test five other coincident de-magnetised BIF and EM conductors identified along a 6km long, mostly buried BIF unit located to the west of the main Toedter prospect area.

Figure 3 – Psi Long Section, showing 2017 RC drill results and planned 2018 pierce-points


Aircore (AC) Drilling Program

AC Drilling – Progress

The aircore (AC) drilling phase of the 2017 Gum Creek drill program targeted a series geochemical, geophysical and structural targets identified at a number of prospects, including Gidgee South, Howards, Kurrajong, Melbourne Bitter, Orion, Ray Charles, Wahoo West and Wilsons (Figure 1).

Between September and November 2017, a total of 440 AC drill-holes were completed for 20,118 drill metres at eight prospects. Drill-hole locations are shown in Figure 1, and hole co-ordinates are reported in Table 2, Appendix 1.

AC Drilling – Assay Results

Various AC intercepts were returned from Gidgee South, Melbourne Bitter and Orion prospects (Figure 2).  The anomalous Gidgee South AC results were at the Sprocket, Brifter and Ferrule prospect areas (Figure 4).  Best intersections returned from the AC drill program include:

No anomalous results were returned from the Ray Charles, Wahoo West, Howards and Wilsons prospect areas.

Table 2 in Appendix 1 lists the drill results for all the completed AC drill holes and Appendix 2 contains the appropriate 2012 JORC Compliance Tables to accompany these results. All gold (Au) results reported in Table 2 are based on 30gm Fire Assays reported to a 0.5g/t Au lower cut-off grade, using 4m composited samples. 

AC Drilling – Next Steps

Initial AC drilling is planned at Wahoo East (92 holes).

Follow-up AC drilling, to better define the anomalous results returned from the initial FY2018 AC drilling program, is planned at Toedter, Gidgee South, Melbourne Bitter and Orion.

 Figure 4 – Plan Gidgee South – showing areas of positive Aircore results

 


Geochemical Review

The Company holds an extensive geochemical database for the Gum Creek project, comprising over 81,000 surface samples and 70,000 drill holes.  During the December 2017 quarter, Horizon engaged GCXplore Pty Ltd to undertake a comprehensive review of the Gum Creek geochemical database with the aim of generating new drill targets and to assist in the planning for new exploration activities.

The work by GCXplore is well advanced, with several targets identified for drill testing in 2018. Further details on the work and targets is detailed in the December 2017 Quarterly Report.

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