Golden Mile South

PROJECT HIGHLIGHTS

• Primary Focus in Gold Environment: Gold exploration near Kalgoorlie, Western Australia. MWL's tenements lie within one of the most prolific gold & nickel producing areas in the world. Kalgoorlie's gold production and remaining resources in excess of 70 million ounces.
• 4 Kilometres from Superpit: North-western boundary of MWL's Kalgoorlie tenements (112 square kilometres) only 4 kilometres from the Kalgoorlie Superpit, Australia's largest producing gold mine - annual production in excess of 800,000 ounces.
• Surrounded by Gold & Nickel Deposits: Surrounded by +100Moz Au and +4.5Mt Nickel, endowed region.
• Extensive Gold Mineralisation Know to Exist: Previous exploration drilling confirms presence of gold mineralisation on tenements up to 8 metres @8.3 g/t. Anomalous gold values throughout the tenement areas to be followed up.
• Underexplored Ground Opportunity: Effectiveness of previous exploration provides reduced by small, fragmented tenement holdings, extensive soil cover and weathering and drilling that in many cases failed to reached bedrock.
• Full Geophysical Data Coverage: Detailed gravity and aeromagnetic survey carried out and processed.
• Golden Mile Stratigraphy: New geological interpretation indicates that favourable dolerite and basalt units cross into MWL's Tenement Group.
• Nickel Potential: Known platinum anomalies (pathfinders for nickel) to be followed up for nickel drill target generation.

The tenements are located in one of the most highly mineralised areas in the world, being close to the giant Golden Mile gold deposit and the Mt Charlotte gold deposit (estimated past production and remaining resources of 74 Moz of gold) MWL considers that the tenement areas have the potential to host substantial gold deposits as well as being prospective for nickel.

The north-west boundary of the Golden Mile South (GMS) tenements is approximately 4 kilometres from the Superpit open cut gold mine. The Superpit is operated by Kalgoorlie Consolidated Gold Mines Ltd (KCGM), a joint venture company between two of the world's largest gold producers, Newmont Mining Corporation and Barrick Gold Corporation. The Superpit is Australia's largest producing gold mine. When fully developed, this open pit mine will be 4.3 kilometres long, 1.4 kilometres wide and 600 metres deep. In 2003 the operations produced approximately 870,000 oz of gold. The Kalgoorlie region is host to over 100M oz of gold and over 4M tonnes of Nickel metal - truly one of the premier addresses in the world of mineral endowment.

The Hannans South gold deposit and treatment plant, the historic Golden Ridge and Boorara gold mining centres, the more recently discovered (1995) Nimbus silver deposit, the Blair underground nickel mine and the Kalgoorlie nickel smelter are all located within 10 Kilometres of MWL's tenements.

Kalgoorlie is the principal regional gold mining centre for the Eastern Goldfields of Western Australia. Proximity to Kalgoorlie makes exploration relatively cheap by global standards, with easy access to infrastructure and facilities.

Access to the tenement area is provided by a sealed road which passes through the northern sector of MWL's tenements. The major sealed road connecting the mining centres of Kalgoorlie & Kambalda passes within a few kilometres to the west of the tenements. Numerous station tracks, fence lines and previously cleared grid lines facilitate  access to the remainder of the tenements. Infrastructure (i.e. power lines, bores and pipelines) related to the adjacent Superpit operation also cuts across the tenements.

Figure 1

REGIONAL GEOLOGY AND MINERALISATION

Regional Geological Setting

MWL's tenement areas lie within the most highly mineralised greenstone belt in the Eastern Goldfields Province of the Yilgarn Block (Figure 2).

It is generally believed that there were three cycles of volcano-sedimentary deposition in the Eastern Goldfields which lead to the formation of the Archaean greenstone sequence. Each cycle commenced with mafic and ultramafic volcanism, and terminated with felsic to intermediate volcanism and associated sedimentation. The repetitive nature of the resultant rock sequences is explained by both multi-cyclic deposition and structural repetition.

The Norseman - Wiluna greenstone belt is characterised by a strong, north-west structural trend represented by major fault zones and shear zones which can be traced over hundreds of kilometres. The faults have divided the volcano-sedimentary greenstone sequences into elongated domains with more or less coherent internal stratigraphies. The timing of gold deposition is typically late within the tectonic evolution of its host terranes.

The greenstone belt is bounded by granitoids which are massive, magmatic or recrystallised granodiorites and monzogranites. Internal granitoids and locally abundant porphyry intrusions (dykes, sills and plutons) of similar composition occur throughout the belt.

Proterozoic dykes cut across the Yilgarn Block. The dykes are clearly defined by strong linear positive or negative magnetic anomalies.

Tertiary alluvial and lacustrine deposits and younger quaternary sediments overlie a large proportion of the Archaean stratigraphy.