Buccaneer Porphyry Gold Prospect >1.5Moz

Hi All,

It is with great delight that today we issued our maiden resource estimation for the Buccaneer Porphyry Gold Prospect at the Twin Bonanza Gold Camp in the Northern Territory of Australia. With an Inferred Resource estimation of 1.67million ounces of gold this is one of the largest single deposit junior gold discoveries in recent years in Australia and the first million ounce plus porphyry hosted discovery in the entire Tanami Region. At today’s prices the estimated contained metal value declared in this resource is in excess of $2,000,000,000.  This independently estimated resource, from one of the industry's most respected consulting groups, is something we can be proud of. The full release can be sourced by clicking here.

This is not about drilling around old workings seeking remnant blocks from a bygone era in a mature belt.  This is more akin to the opening up of new regions, ignoring dogmas and following the road less travelled. Whilst our peers turned their attention to West Africa or the jungles of SE Asia, or the head frame shadows of Western Australia we looked into this wild and often forgotten red-heart of Australia. Australia remains one of the safest political jurisdictions in the world to search for mineral deposits but many believe she had already revealed most of her mysteries.   Twin Bonanza and our other 30,000 square kilometres of licenses are an area devoid of historic workings that the old gold rush missed. It is a blank map.  And down the end of a rough track off a lonely road we have built a substantial maiden resource in just a handful of months since we accessed the property. We call this region – “The Final Frontier” for gold in Australia for a reason – it is unbroken ground where the potential is defined only by our aspirations.

For many the issuing of a resource is the end of exploration and the beginning of feasibility studies. But for us this is just the beginning of an exciting new phase where we aim to grow Buccaneer and the other Twin Bonanza prospects into one of the great gold camps of Australia.  We still haven't defined the edges of Buccaneer yet. We plan to follow up on the new western zone (where we reported 81m grading 2.03g/t in the last hole of 2010). At the Buccaneer northern extensions alone we have 1.2 million square metres of porphyry that we are yet to drill. We also have the Old Pirate high grade gold prospect only 1800 metres away and 28 other prospects with surface mineralisation, geochemical anomalies and geophysical anomalies that require drill testing. The potential is redefined.

It has been less than 11 months since we acquired this prospect along with a further 6000 square kilometres of licenses from Newmont. It has taken a great effort from a young and dedicated exploration team to build this maiden resource in only a five month window of drilling with the rig split between Buccaneer and the Old Pirate discovery. Our on ground discovery costs are well below $3 per ounce. 

It is only a matter of a few weeks until the rigs start turning again. So we look forward to bringing you the constant stream of news as we tick off more milestones during the year.

Darren

Publication Date: 21st February 2011