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Non Ferrous Projects

TRUNDLE

OVERVIEW

EL 4512 is located in Central New South Wales immediately adjacent to the township of Trundle and approximately 355 kilometres west of Sydney and 50 kilometres west of Parkes. The tenement is 100% owned by WPG. EL 4512 is subject to royalty conditions with PlatSearch and Nosebi.

WPG has farmed-out the Trundle project to Cybele Resources (Australia) Ltd, a wholly owned subsidiary of Canadian company Calibre Mining Corporation. Cybele can earn a 70% interest in the Trundle tenement by completing exploration expenditures totalling $3 million over a 3 year period with a minimum work commitment of $600,000 in the first year. Cybele can earn an additional 20% interest in the project by completing a Feasibility Study.

REGIONAL GEOLOGY

The project area is situated within a regional belt of Ordovician volcanic complexes that occur within the Early Palaeozoic Bogan Gate Synclinorium. These rocks are host to several significant gold-copper and gold porphyry deposits including Northparkes, Cowal and Wyoming. Other significant deposits include the recently mined, high sulphidation epithermal gold deposits at Peak Hill and Gidginbung. Mineral resources with a combined total of 7.8 million ounces of gold have been discovered by exploration within this geological province since 1977.

The late Ordovician Raggatt Volcanics at Trundle comprise a co-magmatic suite of andesitic volcanics, pyroclastics, volcaniclastic sediments and minor carbonate rich horizons including limestone intruded by sub-volcanic stocks that range in composition from diorite to quartz monzonite. The Raggatt Volcanics are high-potassium calc alkaline to shoshonitic in composition and are widely considered to be stratigraphic equivalents of the Goonumbla Volcanics that host the large Northparkes porphyry copper-gold deposits 20 to 25 kilometres to the east. Interpretation of regional aeromagnetic data suggests that the Raggatt Volcanics may in fact have originally been deposited as part of the Goonumbla Complex and subsequently displaced to the west by a major north south trending rift that is now occupied by the Devonian Tullamore Syncline.

A zone of pyroclastics and volcaniclastic sediments in the central part of the project area is possibly of Upper Silurian age, and may unconformably overly the Raggatt Volcanics. Sediments and minor acid volcanics of the Lower Devonian Derriwong Beds unconformably overly the Raggatt Volcanics on the western side of the project area. On the eastern side, the Derriwong Beds and Upper Devonian Hervey Group sandstones overlie the Raggatt Volcanics along a low-angle west-dipping thrust fault.

There are numerous old small-scale copper-gold workings scattered throughout the project area, many of which are associated with skarns that lie adjacent to intrusive complexes. Much of the recent past exploration for porphyry mineralisation has been focussed in the immediate vicinity of these occurrences.

Past exploration by others has comprised detailed regional mapping and rock chip sampling, low-level aeromagnetic surveys, RAB drilling and gravity surveying along road traverses, and aircore drilling over most of the area on 200 and 400 metre centres. RC percussion and follow-up diamond drilling has intersected low-grade porphyry-style and skarn associated copper gold mineralisation at several of the known prospects. Details of the more encouraging gold intersections are listed in the table below. Low rank propylitic, calc-silicate and weak quartz-sericite-pyrite alteration are characteristic features of the mineralised intervals.

EXPLORATION POTENTIAL

WPG considers that the Trundle project area still has excellent potential for the discovery of economic porphyry gold-copper deposits. With the exception of Copper Hill, most of the previous deeper drilling has been wide-spaced and conducted either within or in the immediate contact zones of the relatively large mafic monzonite-diorite intrusive complexes. Rock types encountered invariably comprise a mix of andesitic volcanics and intrusives with minor skarn horizons. Alteration assemblages in most cases are propylitic and akin to the typical outer halo of other known LFB porphyry systems. Experience at Northparkes by the Directors has shown that the pipe-like bodies of economic mineralisation are associated with late-stage quartz monzonite porphyries that can be up to several hundred metres removed from the larger mafic intrusions. In addition they may only have small bedrock geochemical and potassic alteration footprints that are less than the 400 metre spacing used in previous regional aircore drilling programs over a significant part of the project area.

A detailed regional gravity survey conducted over the Trundle project area by PlatSearch immediately prior to the acquisition by WPG has delineated an anomaly situated to the east of the Trundle township. A re-interpretation of the regional geology of EL 4512 by WPG suggests that this anomaly may be the manifestation of a shallow depression in the bedrock Ordovician Raggatt Volcanics that has possibly been filled with younger Upper Silurian post-mineral cover rocks. Below background bedrock geochemistry for the few regional aircore and RAB holes that have been drilled in this area and a generally lower magnetic expression provide support for this interpretation. Bedrock depressions caused by preferential deeper weathering of the zones of most intense alteration are a feature of the Northparkes porphyry systems.
The lack of attention to the definition of quartz-rich porphyries by previous explorers also provides an exploration opportunity for WPG. Several small occurrences of these rocks have been noted in past mapping and drill chip logging but have not been followed up with systematic detailed sampling and drilling.

EXPLORATION PROGRESS SUMMARY

WPG has completed a detailed low-level aeromagnetic survey over the Trundle project area. Results have provided significantly enhanced magnetic detail of the prospective Ordovician volcanic-intrusive complex and are being used to define new porphyry copper-gold targets.

Two programmes of systematic RAB/aircore geochemical sampling have been completed at the Mordialloc prospect. Results defined significant new bedrock copper and gold anomalies with values up to 2,260 ppm copper and 0.29 g/t gold associated with monzonitic rocks akin to those at Northparkes. WPG completed an initial test of these anomalies with two 250m inclined RC percussion holes, both of which intersected zones of low grade porphyry-style mineralisation.

PEAK HILL EAST

OVERVIEW

The Peak Hill East Project is located in central New South Wales 360 kilometres west of Sydney and 45 kilometres north of Parkes. ELs 6342 and 6675 are 100% owned by WPG and comprise a contiguous area of 41 sub-blocks that cover an area of 116 square kilometres. Topography is flat to low rolling hills in the west with hilly bush covered terrain in the Hervey Range on the eastern side of the tenement. Good access is provided by the Newell Highway from Parkes.

REGIONAL GEOLOGY

The project area is situated in the Bogan Gate synclinorial zone of the LFB and within a northerly trending structural domain that is bounded on the west by the Parkes Thrust and on the east by the Coolac-Narromine Suture. Regional deformation is thought to have resulted from compressional tectonics and strike-slip movement between these two major structures.

The local geology comprises an interbedded sequence of sediments and volcanics of Mid to Late Ordovician age belonging to the Cotton Formation and Goonumbla Volcanics. Volcanic rocks include intermediate volcaniclastics with associated andesitic and trachyandesitic lavas. Some sub-volcanic Ordovician intrusives may also be present but do not outcrop. Upper Devonian sandstones and quartzites of the Hervey Group abut the Ordovician rocks and form prominent east-dipping, north-south strike ridges along the eastern side of EL 6342.

WPG's Peak Hill East Project lies within the well-mineralised Forbes-Parkes-Peak Hill-Tomingley gold belt. This zone has a significant historical gold production of greater than 1 million ounces to which, the recently completed open pit mining of low-grade ore at the Peak Hill high sulphidation epithermal deposit, has added a further 150,000 plus ounces. The prospectivity of the region has been strongly enhanced by the recent discovery of new porphyry style gold deposits at the Wyoming prospect near Tomingley. The discovery of a new gold-copper porphyry system at the Buryan prospect was reported in 2003 by another company exploring in the area immediately along strike from WPG's EL 6342. Promising drilling results include a 196 metre intercept of 0.16 g/t gold and 0.26% copper including 26 metres at 0.29 g/t gold and 0.52% copper.

Other prospects and areas of interest in the immediate region include the old Great Britain and Emu Reef mines, the Glen Isla and Kyalite prospects south-east of Tomingley and the Glenbrook and Glenroy prospects east of Alectown. Previous exploration has recorded significant zones of quartz-sericite-pyrite alteration from the Cunich, MacGregors mine, Kyalite, Glenroy and Glenbrook prospects. One percussion hole drilled at Glenroy intersected 12 metres at 0.12 g/t gold. Similar values (16 metres at 0.11 g/t gold) were recorded from a percussion hole drilled to test the Glenbrook prospect.

EXPLORATION POTENTIAL

Exploration in the Forbes-Parkes-Peak Hill-Tomingley gold belt has achieved a significant recent success with the discovery of the porphyry gold deposits at the Wyoming and Caloma prospects near Tomingley. The Wyoming deposit is situated immediately north of the historic McPhails mine that produced approximately 96,000 ounces of gold from high-grade quartz veins. WPG considers that the prospectivity of the region has been further enhanced by results emerging from drilling at the Buryan prospect. Large intervals of low-grade porphyry style gold mineralisation have been reported from this locality.

Previous exploration delineated several large quartz-sericite-pyrite alteration zones but none of these were followed up with deeper drill testing programs. This style of alteration is an important characteristic feature of the Northparkes porphyry systems.

Three of WPG's Directors have an intimate working knowledge of the geology, alteration and mineralisation in the Parkes-Peak Hill district through their direct involvement in the Northparkes discoveries. The Company considers the Peak Hill East project has excellent potential for the discovery of new porphyry gold-copper deposits.

EXPLORATION PROGRESS SUMMARY

WPG completed a detailed low-level aeromagnetic survey over EL 6342 in 2005. Results provided excellent definition of the predominantly north-south striking prospective interbedded Ordovician volcanic and sedimentary stratigraphy that is host to the Wyoming and Caloma deposits near Tomingley to the north-west of the tenement. Detailed geological mapping and rock chip sampling together with ground checking of twenty three target areas selected from the results of the aeromagnetic survey has been completed. A rock chip sample collected from an outcrop of quartz veined andesitic tuff assayed 1.82 g/t gold and 1,265 ppm arsenic. A follow-up program of aircore drilling has been completed over five of the more promising magnetic anomalies.

LAKE CARGELLIGO

OVERVIEW

The Lake Cargelligo Project is located in Central Western New South Wales 20 kilometres west of the township of Lake Cargelligo and 580 kilometres west of Sydney. EL 6367 comprises 100 sub-blocks and covers an area of 284 square kilometres. The tenement is 100% owned by WPG.

REGIONAL GEOLOGY

The project area lies within a large north-south rift zone that incorporates the Rast Trough at Lake Cargelligo, and the Mt Hope Trough and Cobar Basin to the north. Recent mapping has established a Siluro-Devonian age for these basement rocks. Lithologies comprise interbedded sandstones, siltstones and shales that show evidence of only weak regional metamorphism. Minor andesite units have been recorded from previous bedrock drilling and can be interpreted from the detailed aeromagnetic data. These volcanics are thought to be largely conformable with the sediments.

Extensive areas of dacite to rhyolite belonging to the Ural Volcanics Formation occur throughout the Lake Cargelligo region but are best exposed in the Ural Range situated immediately south of the project area. These acid volcanics are generally resistive to weathering and consequently form broad topographic highs. Structural interpretation suggests that the dacites and rhyodacites have been emplaced in former fissures and in places may have been extruded as banded rhyolite flows to form flat-lying aprons over the older sediments.

Several major fault-shear structures are evident in aeromagnetic data. The most prominent of these is a broad, well defined, 14 kilometre long north-south oriented shear zone within which the rocks are known to be mineralised and intensely altered at three separate localities. The Achilles 1 prospect is located at the southern end of this shear structure and comprises a 1,300 metre by 250 metre zone of advanced argillic alteration which contains a number of shear-parallel lenses of strong silicification and quartz veining. Previous rock chip sampling and grid based soil sampling defined strong copper, lead and zinc with lesser gold, molybdenum and arsenic anomalies coincident with the mapped zone of alteration.

The Achilles 2 prospect is situated three kilometres north of Achilles 1. At this locality intense quartz-sericite-pyrite alteration is hosted by highly sheared and foliated dacitic tuff. The altered and mineralised rocks are exposed in a small road metal quarry and contain strongly anomalous base metals accompanied by weakly anomalous gold values. Aircore drilling on 50 metre by 25 metre centres has been completed over a small grid and outlined unclosed gold, copper, lead, zinc and arsenic anomalies.

The Achilles 3 prospect is located at the northern end of the shear structure and comprises a further significant zone of outcropping alteration and mineralisation. Outcrop occurs over a strike length of approximately 3 kilometres in a discontinuous zone up to 600 metres wide. Limited random rock chip samples collected during previous reconnaissance mapping returned anomalous base metal values.

The Lake Cargelligo region has been explored by a number of companies over the past 38 years. Most companies focused on the base metal potential in the Browns Reef area, on the magnesite to the north of Mt Tooronga, or on minor gold in quartz veins within the acid volcanics of the Ural Ranges.

The most recent period of previous exploration was carried out in the mid-1990s and involved an 18 month program of mostly regional exploration. This work included regional mapping, stream sediment and BLEG sampling, drilling of 94 vertical aircore holes to bedrock, detailed air photo interpretation and image processing and interpretation of geophysical data.  Prospect development was focussed on the Achilles shear zone and was advanced to the drill target definition stage at Achilles 1 in late 1997.

EXPLORATION POTENTIAL

WPG considers that the Lake Cargelligo project area has excellent potential for the discovery of shear hosted polymetallic-gold mineralisation of similar style to that at The Peak mine near Cobar. Outcrop of rhyolite is present in the western side of the shear zone at Achilles 1 and is of similar age and composition to the rhyolite bodies associated with the mineralisation at The Peak.

Previous exploration at the Mt. Boorithumble prospect intersected significant base metal mineralisation in three drill holes with values up to 1.95% lead, 2.0% zinc and 1.2% copper. The mineralisation is associated with pyrrhotite and lies beneath a weak magnetic anomaly. WPG plans to follow-up these promising intercepts with further systematic gephysical and geochemical surveys.

Some five kilometres of strike length of the Achilles shear zone north of the Lachlan River is poorly exposed. WPG believes that systematic exploration of this zone has good potential to yield further targets that can be rapidly advanced to the drilling stage. Altered and mineralised outcrop at the Achilles 2 and 3 prospects provide an immediate focus for additional prospect development and drilling. Further detailed analysis and interpretation of the regional aeromagnetic data has the potential to define additional shear structures as well as magnetic anomalies that could warrant field investigation. 

EXPLORATION PROGRESS SUMMARY

A two hole diamond drilling programme has been completed at the Achilles 1 prospect. A major zone of intense hydrothermal alteration associated with sheared and foliated interbedded volcanics and sediments was intersected in DDH-A1-2 from the surface to a down hole depth of 160 metres. Alteration comprises pervasive sericite-hematite in the oxide zone and quartz-sercite-pyrite in the primary zone. Variable amounts of copper sulphides, mostly blebs of disseminated chalcopyrite with minor chalcocite occur in the strongly altered rocks.

Soil sampling at the Achilles 3 Prospect has defined a significant lead anomaly, that is now ready for testing with deeper drill holes. Aircore drilling on widely spaced traverses accross the Achilles shear zone between the Achilles 2 and 3 prospects has located new zones of hydrothermal alteration with weakly anomalous base metal geochemistry.

EURIOWIE

OVERVIEW

The Euriowie project is located in far-western New South Wales, 40 kilometres north-east of Broken Hill. WPG has earnt a 60% interest in the project area under the terms of a joint venture agreement with PlatSearch and Eaglehawk. EL 5771 comprises 86 sub-blocks for a project area of approximately 244 square kilometres. The tenement is located over Western Lands Lease pastoral properties. The land surface is typically flat western plains country and the predominant land use sheep grazing for wool production. Access to the area is via the Barrier and Silver City Highways from Broken Hill and locally through station roads and tracks.

REGIONAL GEOLOGY

The Euriowie project is situated on the southern part of the Euriowie Block in an area that is covered largely by Cainozoic sediments, most of which are alluvial sands. Where outcrop occurs it is generally low sub-crop or partly scree covered and exposure of sulphide-rich units is particularly poor. The outcropping basement rocks are mostly Lower to Middle Proterozoic metasediments and metavolcanics of the Willyama Supergroup dominated by highly deformed Broken Hill and Thackaringa Group sediments.

Recent detailed mapping has highlighted the occurrence of several styles of mineralisation within the Proterozoic basement. These include regionally extensive zones of blue-quartz-bearing ferruginous gossans, quartz-magnetite iron formation, localised garnet quartzite, quartz gahnite cupriferous lode as well as locally sulphide-rich layered and brecciated calc-silicate rocks. Several of these lithologies are prospective for stratiform to stratabound IOCG deposits. Numerous small widespread outcrops of pyritic quartz veins, many of which contain anomalous copper and gold, also occur in the area.

Recent exploration by others has focused on the search for base-metal sulphide deposits with lesser emphasis on copper-gold and nickel-copper-PGE mineralisation. Companies that have explored for copper-gold and nickel-copper-PGE have carried out only minor rock chip sampling and RAB drilling. Several airborne magnetic and radiometric surveys have been completed, and ground follow-up of forty magnetic anomalies includes percussion drill testing of fifteen of these anomalies. With the exception of the B40 anomaly, all of these were very weak signatures and are unlikely to be related to stratabound copper-gold mineralisation. Further north, one percussion hole drilled to test an IP anomaly at the Son of Man prospect did not penetrate beneath the main gossan outcrop.

In 2003 PlatSearch conducted reconnaissance gossan sampling and mapping over much of the project area. Significantly anomalous results were obtained from a number of the prospects sampled. Aeromagnetic data was reprocessed to produce better images and compilation of available geochemical data was integrated with PlatSearch's sampling results.

EXPLORATION POTENTIAL

Despite the overall lack of outcrop the Euriowie project area contains a significant number of ferruginous gossans that have been mostly ignored or tested in a cursory fashion for base metal sulphides by previous explorers. Results of recent sampling show these gossans contain widespread and strong anomalism in gold (up to 40 g/t), copper (up to 37.7%) and silver (up to 650 g/t). Known oxide copper workings including the Fairy Hill mine occur within this belt. The widespread gold anomalism, usually in association with copper, is a particularly encouraging sign and demonstrates good potential for IOCG deposits. Several of the known prospects within the project area have been actively explored by WPG. Higher priority IOCG targets that have been subjected to prospect development exploration by WPG are as follows:

Yalcowinna Creek
This highly promising prospect comprises an extensive sulphide gossan outcrop with a strike length of over 600 metres and in places is up to 50 metres wide. Several small prospecting pits and shafts have been excavated on oxide copper showings and the host sediments are intensely altered. The gossan is located at the eastern end of a large untested magnetic anomaly 3.5 kilometres in length. Rock-chip sampling by PlatSearch in 2003 returned values up to 590 ppb gold and 11.9% copper. In 2005, WPG carried out a further phase of sampling that returned values of up to 2.2 g/t gold and 6.9% copper.

Fairy Hill Area
Strong oxide copper mineralisation consisting of malachite and azurite is exposed in and around the Fairy Hill mine workings that have produced over 4,000 tonnes at grades in excess of 2% copper. The mineralisation occurs in faults, fractures and joints and is also disseminated within the host gneissic rocks. Outcrop is generally poor in the immediate vicinity of the workings however banded quartz-magnetite gossans outcrop several hundred metres along strike adjacent to an extensive linear magnetic anomaly indicating additional potential for mineralisation. Rock-chip sampling by PlatSearch returned assays of up to 1.04 g/t gold and 37.7% copper. Follow-up sampling by WPG returned consistently anomalous copper and gold values up to 18.5% Cu and 1.86 g/t Au.

Son of Man
At the Son of Man prospect a massive sulphide gossan extends over a strike length of 3.5 kilometres. The gossan outcrop pattern is curvilinear on an east-west trend and parallel to a well-defined magnetic horizon that WPG considers could represent the down-dip expression of a pyrrhotite-rich lode zone. Limited rock chip sampling by PlatSearch in 2003 recorded values up to 13.1 g/t gold and 3.6% copper.

B40 Prospect
A diamond drill hole completed at this prospect in 1981 intersected a wide quartz-magnetite lode with up to 940 ppm copper and 1340 ppm zinc. It is probable that this lode is the top of a large steeply dipping tabular body and could be the host to significant iron oxide copper-gold mineralisation at depth. Magnetic modelling conducted by WPG suggests the body causing this anomaly is very large. There is considerable untested potential down-dip and along strike. The recent airborne EM survey showed a definite conductivity anomaly at the B40 prospect.

EXPLORATION PROGRESS SUMMARY

Grid based programmes of RAB sampling at Yalcowinna Creek and Fairy Hill defined significant bedrock copper anomalies over the mapped mineralised zones at both prospects. Results of a MLEM survey at Yalcowinna Creek defined an anomaly that coincides with the gossan outcrop and extends for a further 500 metres under shallow soil cover. Support for the interpreted extension of the mineralised zone was also provided by anomalous copper results from additional RAB drilling. The MLEM survey also defined a strong conductivity anomaly located in the down-dip position of the southern extension of the mineralised zone.

The Yalcowinna Creek anomalies were tested with eleven shallow inclined RC percussion holes and one precollared diamond hole on four section traverses. All holes intersected the mineralised zone down-dip from the mapped surface gossan. Mineralised intervals range in down-hole widths from 40 metres to 90 metres and comprise several concordant and more siliceous massive sulphide (pyrite-chalcopyrite) lode horizons that are up to 8 metres thick. In hole YC-1 assays for the 21 metre interval from 18-39m averaged 0.35% copper as did the 24 metre interval from 42-66m in hole YC-2.

The Fairy Hill geochemical anomaly was tested with six inclined RC percussion holes on two sections. Five of the six holes intersected broad intervals of consistent low-grade copper mineralisation. The best results came from hole FH-1 where assays from the 24 metre interval from 0-24m averaged 0.47% copper. While the mineralisation intersected in this initial drilling at the Yalcowinna Creek and Fairy Hill prospects is of sub-economic grade, WPG considers that in both cases it may form part of a low-grade halo surrounding a more significant body of massive sulphides at depth.

Detailed geological mapping and rock chip sampling together with ground magnetic, MLEM and grid based RAB geochemical surveys were completed by WPG at the Son of Man prospect. Results of this exploration defined a gossanous zone that is in excess of 1,400 metres long and from which 36 of 102 rock chip samples assayed greater than 0.1% copper up to a maximum of 2.81%. Gold values were less consistent but assayed up to a maximum of 2.97 g/t. Results of the geophysical surveys and RAB drilling also defined significant anomalies. These targets were tested with four RC percussion holes, all of which intersected zones of disseminated and veined pyrite within altered metasediments. Weakly anomalous copper and zinc values were recorded from three of the holes. 

Ground magnetic and MLEM surveys were carried out by WPG at the B40 prospect and defined several significant anomalies. These targets were subjected to reconnaissance RAB drilling and further tested with two deeper RC percussion holes. Nosignificant gold or base metal mineralisation was intersected.

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