Mt. Roe Project

Overview

The Mt. Roe Project is located approximately 30km south of Karratha in the Pilbara region of West Australia.  The Pilbara region is known for its iron ore deposits and substantial associated infrastructure. In addition to exploration projects for shear hosted gold systems, since 2016 the Pilbara has also been known as an emerging area for significant gold potential specifically in paleoplacer-style or Witswatersrand-style conglomerate hosted gold deposits.

Figure 1

The Company’s project encompasses two sets of tenements, the Mt.Roe and the Prinsep blocks, covering 1,232ha of land immediately adjacent to Novo Resources Karratha Gold project and Artemis Resources Silica Hills property.

Exploration

Conglomerate Hosted Gold:

On the MT Roe tenements, conglomerate and related sedimentary rock units have been identified below an inferred equivalent of the Mount Roe basalt.  This unconformity has been traced by way of mapping and trenching for approximately five kilometers to the south-southwest along the base of the Sholl Ridge.  Exposure of the sedimentary units in some areas is much better leading to the belief that block faulting has played a roll in preservation and exposure of the target rock units.  Gold nuggets found on the property are a mixture of flattened ‘melon-seed’ nuggets characteristic of conglomerate hosted gold while others are more coarse specimen type nuggets.  Gold nuggets found in certain areas of the property exhibit the same characteristics as recent nugget discoveries in conglomerate host rocks by Novo Resources, Artemis Resources, De Grey Mining and Kairos Minerals Ltd.

Exploration activities for Conglomerate Hosted Gold and the detrital (weathered) equivalents has focussed on two areas, one more advanced than the other, of the unconformity and related conglomerate and sedimentary units.  Work programs included: mapping of inferred cross faults, both ancient and more recent; trenching to identify areas of sedimentary units on the unconformity; and stream sampling to determine areas of the unconformity potentially shedding gold.  Most recently, excavation of a cobble channel, possibly part of a braided channel system, has indicated that there are areas below current surface that preserve conglomerate rock textures and that are inferred to sit on strongly weathered and leached ‘basement’ units.  Rounded and flattened nuggets were found to be irregularly distributed along the trench with an increased number of nuggets located immediately adjacent to a mafic dike cutting a conglomerate host unit in the shallow sub-surface.

Figure: Known nugget collection locations; Conglomerate Hosted Gold (‘CHG’) areas of interest (‘AOI’)

Figure 2

Figure: Area of recent trenching to expose and follow cobble-filled channel (hatched red pattern).

Figure 3

Plates 1 and 2a,b (respectively below) referenced in above figure. The photographs are of selected samples and are not representative of mineralization that is hosted on the property.

Figure 4

Targeting for ‘traditional style’ gold deposits:

The Prinsep  tenements have received an initial pass of stream samples followed by two phases of soil sampling and prospecting.  This work has resulted in the definition of a large weakly anomalous gold in soil anomaly surrounding a much stronger more restricted gold in soil anomaly.  This area has also returned select high grade grab samples from sub-crop and outcrop.  The anomalous area seems to be roughly coincident with the location of an inferred contact of a talc schist with a strongly deformed package of locally silicified volcanic derived sediments, iron formation and chert units.  A second anomalous zone to the NE still requires additional follow-up work programs.

Figure 5

Given the proximity of the Artemis Resource coarse gold vein style mineralisation at Silica Hills, roughly 600m southeast, NxGold undertook a more traditional exploration approach which included detailed unmanned aerial vehicle (“UAV”) magnetics surveying, silt sampling, soil sampling and prospecting.  Based on the work to date a number of drill ready and near drill ready targets have been developed with additional areas that require follow up activities to determine if they remain of interest.

Figure: Stream sample results.

Figure 6

Figure: Soil samples on reduced to pole magnetic intensity map.

Figure 7

Target areas are listed below:

Conglomerate Hosted Gold potential

Conglomerate: location of outcropping conglomerate and sediments, part of unconformity related conglomerate hosted gold, basin forming shear structure structures, proximal to historical nugget collecting areas and dryblowing area

Kangaroo: moderate stream anomaly; on edge of large circular magnetic high feature, location of historical nugget collecting, part of unconformity related conglomerate hosted gold

Bulldog: historical nugget location, strong stream anomaly, underlain by large circular magnetic high feature; possibly part of the unconformity related conglomerate hosted gold, proximal to breccia dyke

Cat: weak stream anomaly, part of unconformity related conglomerate hosted gold, requires field follow up

Structurally Controlled potential

Eagle: strong stream anomaly, historical specimen nuggets, trenching exposed gold bearing vein, moderate to strong soil anomaly, underlain by large circular magnetic high feature; coherent gold in soil anomaly over magnetic peak, numerous geophysical derived magnetic features (structures)

Hawk: strong stream anomaly, strong soil anomalies below historical 80oz nugget patch which is valley parallel require expansion of grid and follow up, strong coherent soil anomaly above 80oz

Swan: moderate stream anomaly, historical dryblower area, weakly auriferous veins exposed during trenching, cross structure anomalous in copper; possible shear and extension veining zone

Sun: strong stream sample anomaly, location of NW-SE trending 50m pinch and swell quartz vein

Crow: strong stream anomaly; local sub-cropping Cu-Au vein, strong but limited soil anomaly

New ridge top silt anomaly requires follow-up

Silver rich veins on margin of surface projected MAG anomaly.