Australian Gold and Copper Limited’s Gundagai Gold Project (EL8955)

Drill Ready Gold and Polymetallic Targets

Background

The Gundagai project consists of an exploration licence covering 265km2 (EL8955 ‘Gundagai’) and comprises multiple drill ready prospects considered prospective for McPhillamys-style gold (e.g. Grandview), epithermal gold-copper (e.g. Rosehill) and large-tonnage zinc-lead-silver prospects (e.g. Bongongalong).

Gold prospects show similarities to the Late Silurian hosted McPhillamys 2.3Moz Gold Deposit (ASX:RRL). The drill ready Grandview Gold Prospect is characterised by a zone of sheared quartz-sericite-carbonate-pyrite altered volcaniclastics returning up to 35g/t Au in composite rockchips and represents a near term high-grade gold discovery opportunity.

Geological Setting

The Gundagai project straddles the mafic volcanics of the Ordovician Jindalee Group with deformed serpentinites, early to late Silurian sediments and intermediate volcanics. Main Ridge is a 4km trend of sheared, gold-bearing, sediments, analogous to the Silurian rocks of AGC’s Grandview prospect. Mineralisation at Grandview is thought to be late Silurian in age with gold up to 35g/t in composite rockchips being associated with disseminated and structurally hosted pyrite, similar to the McPhillamys deposit.

Previous Exploration

Historically Gundagai was an important gold mining district in the late 19th century for both reef gold and alluvial river gold. Large scale alluvial mining and dredging took place in the rivers and significant gold was won. Numerous reef gold mines were also worked and have later been explored by more recent techniques. The Eyrie prospect has a strong Au As correlation and is hosted by the Ordovician Jindalee Group. The prospect is marked by a 800m long and 200m wide very strong As and Au soil anomaly and is still open along strike in both directions. Shallow drilling resulted in:

WE956 1m at 4.19g/t Au from 69m and 8m at 0.22g/t Au from 102m
WE2 4m at 4.14 g/t Au from 48m
WE4 4m at 1.46g/t Au from 50m
WE6 4m at 1.45g/t Au from 12m

Modern exploration started in the 1960’s for base-metals with North Broken Hill Ltd exploring the Bongonalong Pb Zn Ag prospect where they defined a very large Pb Zn Cu soil anomaly (max soil value 0.39% Pb), this area was highly regarded and heavily explored by Pacminex Pty Ltd, The Broken Hill Proprietary Company Ltd, then in a JV by Australian Anglo American Ltd.

There are many wide, low-grade but broad Pb Zn intercepts documented, including:

DDH1 1.5m @ 3.3% Pb, 1.7% Zn
DDH1-9-3D: over 60m of quartz carbonate veins hosting galena sphalerite and pyrite mineralisation inc 1.2m at 4.2% Pb and 2.1% Zn and
DDH1-9-6D: Multiple wide zones of >1% Pb plus Zn

Twelve historic drill holes have been drilled over 5km strike and intersected lightly folded and fractured, rhythmically banded sandstone/siltstone with abundant ptygmatic quartz-carbonate veins hosting low grade lead, zinc and pyrite mineralisation over +50m wide intervals.

Australian Anglo American Ltd later defined a large Pb soil anomaly across Bongongalong South (1.7km +850ppm) which remains open in both directions along strike.

The Rosehill Prospect was first sampled in 1969 by Mineral Engineers Pty Ltd and is characterised by a 3km long, 60m wide Au Cu gossan with encouraging epithermal quartz pyrophyllite alunite sericite pyrite alteration. Three shallow holes in the early 1970’s by Pacmindex and then EZ Ltd confirmed very intense, upper-level, epithermal alteration including significant pyrite with anomalous gold and base metals and demonstrates that further drilling is warranted.

The Grandview Prospect was explored by Shell Ltd in 1986 and saw significant trench results (5.8m at 2g/t Au, 2.7m at 6.44g/t Au, 1.9m at 1.67g/t Au, 30m at 0.2g/t Au (in mine adit)). This work resulted in three shallow RC holes being drilled underneath historic gold mine workings. The RC holes were testing a 1.5km long zone of sheared and altered sediments and resulted in wide intercepts, including:

PGH-G-1: 54m at 0.26g/t from 0m including 6m at 0.63g/t from 42m
PGH-G-2: 6m at 1.0g/t from 36m and 21m at 0.38g/t Au from 66m
PGH-G-3: 3m at 1.62g/t from 33m

Exploration Potential

Grandview Gold Prospect

The Grandview prospect is drill ready and has significant potential to host McPhillamys-style gold mineralisation. Recently, quartz sericite pyrite carbonate alteration has been mapped over 1200m x 150m and 1m composite rockchip samples assayed 17g/t, 26g/t, 33g/t and 35g/t high-grade gold from sheared chert & altered sediments. These rockchips are the first samples analysed in 36 years and results of strong Bi Te As pathfinders demonstrate the similarities to the McPhillamys resource (French et al 2015). The extensive surface gold anomalism defined by rockchips and soil geochemistry provides several drill ready prospects.

Rose Hill Gold Prospect

The 3km long, Rose Hill epithermal Cu Au Prospect hosted by intensely altered porphyritic andesitic volcaniclastics with geochemical pathfinder (Fe, S, Bi, Mo, Te, Cu, Pb, As) anomalism provides evidence for a fertile epithermal gold deposit.

The 3km long, Cu Au surface geochemistry and quartz, alunite, pyrophyllite pyrite alteration is typical of a high level epithermal alteration halo which, in the late stages of deposit formation, can produce a depletion of metals from retrograde acid alteration above the ore body and will result in very low drill intercepts if not drilled deep enough. This, coincident with a strong magnetic destruction zone is evidence the system has depth potential which makes this a valuable priority target for progressing towards drill ready stage.

Bongongalong Zinc Lead Prospect

At Bongongalong, 5km of gossanous horizons and many low-grade but broad drill intercepts provide an attractive base metal prospect. Recent sampling of historic drill core confirmed the presence of Pb Zn Ag mineralisation with high temperature pathfinder elements As, Bi, Te, Au, Sb, S, Fe.