Waite Kauri Project

P 37/6634-6636, P 37/6664-6665, P 37/6757 & P 37/6791-6792 (Birimian Gold 100%)

Introduction

The Waite Kauri Project represents an exciting opportunity for Birimian Gold, with excellent potential for economic nickel oxide mineralisation due to the project containing the southern strike extensions to GME Resources Limited Waite Kauri nickel oxide deposit. This project consists of eight granted prospecting leases, namely P 37/6634-6636, P 37/6664-6665, P 37/6757 & P 37/6791-6792, which cover 1570 hectares of the eastern limb of the Benalla anticline (see Figure 1.1). The project is located on the southern strike extensions of GME Resources Waite Kauri nickel oxide deposit (measured resource of 1.30 Mt @ 1.33%Ni/0.14% Co*).

Location & Access

The Waite Kauri Project is located 670 kilometres to the northeast of Perth in Western Australia. The tenements are located 43 kilometres to the northeast of Leonora, and are accessed via the Leonora-Laverton road, and then via pastoral station tracks and mining haul roads.

Previous Exploration

Exploration over the project area has historically been for gold mineralisation, however the project shows excellent prospectivity for nickel.

The first recorded exploration in the region was conducted by Australian Selection Pty Ltd (later BP Australia Ltd) in the late 1960s to early 1970s, and included geological mapping, rock chipping and aeromagnetic surveys. This exploration was of a regional nature and was of little relevance to Birimian Gold's project area.

Newmex Exploration Ltd conducted exploration for nickel in the early 1970s. This work consisted of a programme of 895 surface soil samples and rock chips, which were followed up with a drilling programme consisting of 17 percussion and 4 diamond drill holes. Surface sampling delineated a nickel anomaly in the order of 0.1-0.2% nickel at surface, which now forms the surface expression of GME Resources NL's Waite Kauri nickel oxide deposit (1.30 Mt @ 1.33%Ni/0.14% Co*).

Sampling also generated a number of anomalies that remain untested, including a substantial nickel anomaly within Birimian Gold's tenement, P 37/6665 (see Figure 1.2), which shows values of up to 0.28% nickel at surface. Drilling conducted by Newmex tested the GME oxide position to the north and some peripheral mineralisation, however this drilling does not extend into Birimian Gold's project area.

The project was the subject of little exploration in the 1980s, but again came under scrutiny in the early 1990s, this time for gold mineralisation. BHP Gold Mines Ltd/Newmont Australia Ltd conducted a small programme of stream sediment sampling and follow up soil sampling. This programme generated one anomaly within the tenement now held by Birimian Gold, as P 37/6792. Newcrest Mining Ltd took over the exploration from its predecessors and conducted further soil sampling and a programme of 66 RAB holes in the central area of P 37/6792. This drilling produced some anomalous results, with the best assay being 3m @ 0.15gpt Au from 3 metres depth. It should be noted that the effectiveness of these drill holes is questionable due them being relatively shallow, and many holes finishing in saprolite or failing to reach bedrock.

Dominion Mining explored the area to the south of the Waite Kauri in the early 1990s. An extensive programme of stream sediment sampling was undertaken, with a number of samples falling within the southern half of P 37/6757. Assays of up to 10 ppb Au were obtained in the stream sediments and were followed up with an east-west oriented line of soil sampling at 50 metre spacings. Results of up to 8 ppb Au were obtained from this sampling, and require further investigation, given the colluvial cover through the area, which may be masking the underlying mineralisation.

In the mid 1990s Normandy Exploration Ltd and Johnson's Well Mining NL explored the region; exploration covering the project area was limited to geological mapping.

Geological Setting

Regional Geology

The Waite Kauri project covers an area within the northern half of the Minerie 1:100 000 GSWA Map Sheet. The project straddles the granite-greenstone contact to the north of the Murrin Murrin lateritic nickel mining operations, in the Northeastern Goldfields of Western Australia.

The stratigraphy within the project area is interpreted to be a sequence of intermediate to ultramafic Archaean greenstones associated with the eastern limb of the Benalla Anticline. A number of doleritic dykes crosscut the project in a northeasterly orientation, and are indicative of the underlying structural architecture.

Prospect Geology

A veneer of Recent alluvial/colluvial cover and Tertiary laterite covers the tenement area, partially masking the geochemical signature of underlying mineralisation. The sub to outcropping stratigraphy consists of a sequence of massive to strongly foliated, Archaean intermediate volcanics and ultramafic units on the western side of the tenements, with increasing basement granitic units to the east.

Mineralisation & Resource Potential

The project area has been the subject of limited exploration and no historical mining. The potential of this project initially lies in the presence of the economic nickel oxide mineralisation less than 400 metres to the north of the tenement boundary of P 37/6665. GME Resources have delineated a measured resource of 1.30 Mt @ 1.33%Ni/0.14% Co* at Waite Kauri, which GME has reported to have the correct metallurgical characteristics to allow it to be processed at the Murrin Murrin treatment facility (see Figure B), only 15 kilometres to the southeast of the resource position.

A careful evaluation of the Newmex Exploration data reveals that the geochemical signature of the nickel oxide mineralisation extends into Birimian Gold's project area, namely P 37/6665 (see Figure 1.2). Surface geochemistry shows a broad nickel anomaly that is over 300 metres wide, and nearly a kilometre long, but remains untested to the south. This anomaly averages values of around 500 ppm nickel, but shows values up to 2850 ppm, or 0.28%, nickel at surface. It will be a priority of Birimian Gold to assess the potential of this geochemical anomaly through extensional soil sampling and drill testing.

The gold potential of the tenements remains largely untested due to wide spaced surface geochemistry and limited drill testing of only one small area of the project, however there does seem to be potential for 'Tarmoola' style gold mineralisation within the granite carapace.

* Source: http://www.gmeresources.com.au/