Lawson Gold
Lawson Gold Annual Report 2013


The Lawson Gold Project is located approximately 45 kilometres northeast of Kalgoorlie, Western Australia. The Project area comprises four Mining Leases (M27/262, M27/263, M27/264 & M27/265), an Exploration Licence (EL27/345) and an Exploration Licence Application (ELA27/432), which together form largely contiguous ground covering a total area of approximately 48.32 km2 (see Figure 1).

The Project is situated approximately 20km to the north of the Kanowna Belle Gold Mine, which forms part of Barrick Gold Corporation's Kanowna operation and had resources attributable to Barrick Gold Corporation of over 2 million ounces of gold as at 31 December 2009. Other significant gold deposits and gold mining operations located near the Project include Paddington, Broad Arrow and Mulgarrie. The Project also abutts the northern boundary of the high grade Silver Swan nickel mine.

location map overview

Figure 1 – Geology and Summary of Previous Gold Exploration

The Director's consider that the exploration and discovery history of the Kanowna Belle gold deposit provides a useful comparison and insight to the potential of the Project area. Lawson Gold's exploration model and exploration target for the Project area is for the discovery of a Kanowna Belle style gold deposit.

Lessons gained from the exploration and discovery history of the Kanowna Belle gold deposit will be readily applied and useful in directing cost-effective exploration at the Project area. The discovery hole for Kanowna Belle was the result of a follow up RC drilling campaign that was supported by a 24 hole RAB drilling program (best 8m @ 4.5g/t Au) designed to test the peak soil anomaly identified as part of a close spaced soil sampling. Due to constrained lateral distribution of gold in soil, pathfinder elements were useful in directing and prioritising exploration including As, Cu, Zn, Bi, and Sb.

Recent work on the Project has involved open file information and historic exploration data being assembled into a structured database along with several site visits conducted by experienced geologists to identify and visually assess gold targets on the ground and inspect some of the available core from recent nickel exploration.

Following this work, the following have been identified as key areas for follow-up:

1. Gold nuggets are widespread near surface in the Project area with many occurrences located within in-situ soils and away from alluvial transport zones suggesting that source mineralization of nuggets may be nearby.

2. The untested surface and near surface soil gold anomalies (20-50ppb Au over an area that is 4 kilometres long and 300-500 metres wide) show good continuity, are statistically robust (based on large numbers of samples from in-situ soils) and define coherent trends for targeting of follow-up drilling.

3. Geophysical surveys, especially interpretation of aeromagnetic surveys, indicate several structural zones as gold targets that remain untested by drilling - despite these targets having anomalous surface geochemical results.

4. Core drilling conducted for nickel exploration contains narrow quartz +/- sericite/biotite alteration zones that are worthy of analysis for gold. Significant sulphide concentrations (1-40% pyrite + pyrrhotite) were logged in altered metasedimentary rocks in the immediate footwall to ultramafic units that may relate to potential gold mineralization.

5. RAB drilling has been sporadic and not always directed with a gold focus. Often gold analyses were limited to bottom of hole samples, which can be easy to underestimate or overlook gold potential. However, there have been significant RAB and RC drilling results from limited follow-up drilling of soil gold anomalies.

FerrAus (then called NiQuest Limited) identified two areas of gold mineralisation from previous exploration by Mt Kersey Mining. The northern most area, named the Tyrells Prospect, consists of three consecutive RAB drill holes returning >1g/t Au over intervals >/= 1metre. The best gold intersection reported by Mt Kersey Mining from drill hole GINB 758 was 4m @ 8.58g/t Au in weathered basement clays from 44 metres depth.

The main area of gold mineralisation indentified by FerrAus is concentrated around the Lawsons Gold Prospect. This prospect was drilled by both Mt Kersey and FerrAus with both companies intersecting gold mineralisation in RAB drilling with numerous results containing 1-3g/t Au from various levels within the soil and deep weathering profile. The best gold intersection of 5m @ 18.22 g/t Au was recorded in FerrAus drill hole ESR054 in a composite sample from 72m depth in altered metasedimentary rocks. Importantly, this drill hole stopped at 77 metres depth with the last interval grading 1m @ 6g/t Au suggesting that gold mineralisation remains open at depth. Seven RC percussion drill holes were completed, two by Mt Kersey Mining and five by FerrAus. Four of the five holes drilled by FerrAus intersected narrow intervals of gold mineralisation containing 1-2g/t Au. Based on geological descriptions in drill hole logs, the gold mineralisation is contained mainly in altered metasedimentary rocks, some with significant amounts of quartz veining containing sulphide minerals.

location map overview

Figure 2 – Lawson's Prospect

At this early stage, the Directors consider that the gold exploration potential of the Project is best measured by the strength of the soil gold anomalies and the relative merits of RAB and RC drill results from previous exploration.

It is the Directors view that the Project area warrants focussed, systematic gold exploration and the existing targets warrant immediate follow-up exploration and drill testing by RAB, Aircore and/or RC methods, particularly at the Lawsons and Tyrells prospects. A systematic approach to follow-up exploration of the soil gold anomalies is intended to ensure that numerous targets will be generated for RC and/or diamond drilling.

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