KLONDYKE GOLD PROJECT
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Klondyke Project (MLs 45/552, 45/668, 45/669 and 45/670)
Overview
The Klondyke Project historically had its resource calculations associated with the Klondyke King and Queen old mine areas which produced approximately 300,000 ounces of gold. The dominant exploration philosophy by historical explorers was to deep diamond drill to examine the underground mining potential of the Klondyke King and Queen Mines. Jupiter’s exploration program focused on examining a large scale shallow resource potential by combining the mining areas Klondyke King, Klondyke Queen, St George, Dead Camel, Cuban, and Kopckes Reward. A conceptual geological, metallurgical scoping study, and drill hole program was completed.
Location
The Klondyke property is located in the Pilbara Mineral Field of Western Australia 27km south-east of Marble Bar within Warrawoona Mining Centre. The region is reported to have produced 744.5kg of gold from 25,191t of ore at an average grade of approximately 30 g/t. In addition, 22.3kg of gold were reported from alluvial and dollied material.
History
Marble Bar was developed as a result of the gold rushes to the Pilbara in the late 1880s. It is assumed the Klondyke area was discovered around the same time. This gold mining province was home to some of Australia’s most famous gold nuggets including the 333 ounce 'Little Hero', the 413 ounce 'Bobby Dazzler', the 332 ounce 'General Gordon' and the Millennium Nugget.
In 1955, the Klondyke Centre attracted the attention of the Geological Survey of Western Australia. They drilled a number of old workings including Bow Bells (intersected 3.35m at 2.96g/t and 1.52m at 1.85g/t at depths) and Klondyke Queen (intersected 1.52m at 4.15g/t and an intercept of 3.82g/t).
Modern Exploration
During this period Aztec Mining, CRA and Lynas all worked the Klondyke area. Numerous drilling programs and exploration programs were carried out. Work included geological mapping, bulk sampling, underground sampling, soil sampling, magnetics, aerial photography, petrology and resource modelling and calculations.
Exploration highlighted the Klondyke Queen and King workings and numbers of mineralised intercepts were reported. Diamond hole program of four holes at Klondyke Queen yielded grades in excess of 1g/t and included 2m of 44.69 g/t, 1.7 m at 2.92 g/t, 0.6 m at 2.87 g/t, 10 m at 5.2 g/t and 10 m at 1.22 g/t.
It is estimated that by the end of 1997, 80 holes for 14,110 m of drilling, including 9,032 m RC drilling, were completed within the Klondyke Mining Zone. The resource calculations focus on the Klondyke King and Queen areas.
In 2005 and 2006, Jupiter carried out a RC drilling program at Kopcke’s and Klondyke King Prospects. The fifteen holes were drilled and this program confirmed gold mineralisation at Kopckes Prospect, which is located on the southern extension of Klondyke Shear system within the tenement group
Geology
The Klondyke tenements are on an Archean greenstone belt oriented west northwest and situated between the Mt Edgar Batholith to the north northeast and the Corunna Downs Batholith to the south southwest. Four deformation events have affected the sequence dominated by ultramafics and mafics rock types in project area. The third deformation event is represented by intense shear zones which are associated with gold mineralisation. The shears are steep dipping to near vertical.
Mineralisation
The gold mineralisation is localised within the zone of intense shearing and carbonate and sericite alteration. The gold, along with disseminated pyrite and to a lesser degree chalcopyrite and arsenopyrite, occur in quartz veins and stringers in the Klondyke Shear which runs approximately parallel to the dominant North West shear direction. Within the shear are silicified zones as parallel bands, often showing bounding structures both down dip and along strike.
At least four sub-parallel shear zones are recognised and two of these are associated with abandoned gold workings. At present, the highest value target zones within the project are the Klondyke King and Queen zone and the Kopcke’s Reward zone within the main Klondyke shear system.
Exploration
Jupiter completed its reverse circulation drilling at the Klondyke Project in January 2007. Ten reverse circulation drill holes, totalling 2,191 metres (Table 5 below) were drilled as part of an infill drilling program to test mineralisation between the surface and 200m depth level. This program focused on testing targets at the Klondyke King and Klondyke Queen [M45/669].
Table 5. Drill Hole Summary.
Drilling encountered mineralisation zones comprised of gold in quartz stringers and gold associated with pyrite and lesser chalcopyrite and arsenopyrite in altered and sheared country rock. Assay over the mineralised zones returned anomalies with values from 0.3 g/tonne Au to 23.4 g/tonne Au. Highlights from the drill hole program are in Table 6 and Figure 14 (Hole K07RC01 cross-section).
Table 6. Highlights from RC Drill Hole Program.
Figure 14.
Cross-section Klondyke Project Drill Hole K07RC01
looking north east.
Screen Fire Assay
Gold Assay Comparison with Fire Assays
A total of 179 samples from the January 2007 Klondyke percussion drill program were submitted for screen fire assay for gold. These samples were compared against the original gold fire assay samples. The samples were taken from holes K07RC01, K07RC04, K07RC05, K07RC06 and K07RC07 from mineralised intervals within the Klondyke shear system.
The average grade for the screen fire assay was 0.84 g/t. The average grade for the equivalent intervals for the fire assays was 0.69 g/t. This variance equates to approximately a 20% increase in grade report from the screen fire assays. For material above 0.5 g/t the average grade for the screen fire assay was 1.77 g/t and for the fire assay results the average grade was 1.55 g/t. This variance equates to approximately a 14% increase in grade report from the screen fire assays.
Based on these results it is proposed that screen fire assays are routinely conducted on any further samples submitted for assaying to accurately determine the gold grade of Klondyke.
Metallurgy Comminution Test Work
The metallurgical test work indicated that Klondyke ore is suitable for processing in a standard CIL plant with an estimated gold recovery of 90+%. The ore presented as a free-milling target with cyanide and lime reagent consumptions at the low end of normal usage.
The core sample was also tested to determine standard bond crushing, rod milling and ball milling indices. The bond crushing work index was high, averaging 38 kWh/t.
Outlook
Surface mineralisation remains under-explored. This mineralisation is key and the top of the potential resource requires further drill definition.
Further testing of the sub-parallel shears adjacent the Klondyke shear is also warranted. The Klondyke Gold Project is currently a second order priority for Jupiter as it focusses on it's Steel Feed Strategy, nevertheless minimum expenditure committments will be maintained on this project, whilst divestment opportunities are evaluated. Interested parties can contact the Company in the first instance.