Gregory

Exploration within the Gregory Project is primarily targeting iron-oxide copper gold (IOCG) deposits. The IOCG deposit class includes orebodies such as the giant Olympic Dam* deposit in South Australia.

The Mt Isa Mineral Province is recognised as one of the most significant IOCG provinces in the world. Numerous IOCG discoveries* have been made in the Mt Isa region over the recent past including Selwyn, Eloise, Osborne, Mt Roseby, Ernest Henry, Trekelano, Swan, Amethyst Castle and Rocklands.

IOCG deposits exhibit considerable diversity of style in terms of scale, host rock type, structural setting and mineral assemblage, however, the exploration model is well developed. Exploration for IOCG systems in Australia is primarily concerned with the use of remote geophysical methods to "prospect" under cover for iron oxide alteration associated with granitic intrusives and/or major fault systems. At a local scale the recognition of characteristic zones of hydrothermal mineral alteration can be important as an indicator of proximity to IOCG systems.

Geophysical data from within the Gregory Project area provides indicators of the presence of iron oxide alteration, in close proximity to granitic intrusives, within a complex structural setting. Drilling data also provides direct evidence of the development of intense magnetite-calcite alteration which may be of an IOCG affinity. As such the Directors consider the project area to be highly prospective for the discovery of IOCG deposits.

The key exploration features of the Gregory Project are summarised as follows:

• Major mineralising fault zone - The project area overlies the projected northern extension of the Mt Isa - Gunpowder Fault Zone. To the south of the project area numerous significant deposits owned by third parties lie within and adjacent to this major mineralising fault system including: the Mt Isa, Mt Oxide, and Gunpowder copper deposits*, the Mt Isa, Hilton and George Fisher silver-lead-zinc deposits*, and, the Skal, Valhalla, and Duke-Batman uranium deposits*.
• Association with granitic intrusives - Elongate gravity lows that extend along the length of the project area are interpreted as low density granitic intrusives. IOCG systems can be spatially associated with granitic intrusives which may act as a source for metal-bearing fluids or provide a regional heat source to drive deposit forming systems or both.
• Development of iron-oxides - The presence of multiple high order magnetic anomalies suggests development of discrete zones of iron-oxide alteration (magnetite) which may be associated with IOCG mineralising systems.
• Structural complexity - The complex pattern of magnetic anomalies within the project area suggests structural complexity of the target Proterozoic age host rocks. Complex structure may provide enhanced pathways for fluid flow and assist in the focus of metal bearing fluids. The development of arcuate (curved) magnetic trends to the southern end of the project area also suggests potential for possible dilatent (open) fault zones which are also considered favourable for deposit formation.
• Discordant gravity and magnetic anomalies - Detailed prospect scale geophysical data is yet to be acquired over the project area, however, it is apparent from preliminary processing of regional data that discordant offset gravity and magnetic anomalies exist. These features present immediate exploration targets that may represent high density hematite dominated IOCG alteration overprinting an earlier lower density magnetite assemblage.
• Concealed targets/limited prior exploration - Target host rocks within the project area are concealed by a thick sequence of younger sediments that discouraged prior exploration. Public records indicate that only one exploration drill hole to basement has been completed within the entire Gregory Project area. Drill hole NDS-D2, located at the southern margin of the project area intersected basement at 238m. Depth to basement across the project area is unknown but is inferred to range between 200m and 400m.
• Significant scale of opportunity - The substantial tenement position at Gregory (1,893km2) and large number of geophysical anomalies presents a significant scale of opportunity.

The Gregory Project represents an opportunity for discovery of multiple IOCG systems and potentially a new IOCG sub-province within the broader Mt Isa region.

Although the prime focus at Gregory is IOCG systems, the project area also presents significant opportunities for the discovery of Mt Isa-style sediment hosted copper deposits and Mt Isa style sediment hosted silver-lead-zinc deposits.

The proposed work program at Gregory will include the acquisition of detailed geophysical data (magnetics and gravity), geophysical modelling, and re-interpretation of basement geology and structure. Diamond drill testing of priority targets will follow. Consideration will also be given to use deep electrical geophysics (IP), where applicable to directly detect the presence of sulphide mineralisation.

* Not assets of the Company

• Gregory - Total Magnetic Image
• Gregory - Basement Geology
• Gregory - Landscape