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PROJECTS (NEW)

COWARRA GOLD PROJECT
EL 5939 BREDBO NSW
(Capital 100% Under Transfer from Atlas Resources Pty Limited)

   

Licence Granted: EL 5939 30th April 2002 (Acquired from Atlas Resources Pty Ltd)
Location: 15km southeast of Bredbo
Area: EL 5939 28.4km2

Target: Gold in high-grade mesothermal veins and shear hosted sulphidic deposits

Commodities Sought: Gold

Metallogenic Province: Southern Divide Gold and Base Metals Belt

Exploration Philosophy:
Capital's evaluation of the property is being directed towards:assessment of the mineralisation remaining in underground blocks and pillars; the search for additional high grade mineralisation in plunging shoots; and assessment of the potential to retreat tailings.

Project Status:

In June 2009, Capital exercised its option to acquire a 100% interest in Exploration Licence 5939 from Atlas Resources Pty Limited (A.C.N. 003 463 036) and exploration of the property which includes the former producing Cowarra gold mine commenced.

The mineralisation is hosted by a swarm of at least five, sub-parallel shear zones in multiply deformed Ordovician sediments. The shear zones vary from 150 metres to two kilometres in length and carry narrow, sinuous sulphide and quartz-sulphide veins in a system that extends over an area 3x1km at the Cowarra mine. Historic production from the mine was at relatively high grades of around 8g/t gold by the Broken Hill Proprietary Co. Ltd in the 1940's and 5-13g/t gold by Horizon Pacific Ltd in the 1980's.

Un-mined ore remains in some shoots and results from Atlas' drilling in 2004-5 were encouraging. These included:

6.5m @ 6.2g/t gold from 39m in CRC001 - Victoria Lode;
4.0m @ 5.6g/t gold from 41m in CRC003 - Victoria Lode;
5.0m @ 11.2g/t gold from 64m in CRC022 - Victoria Lode;
2.0m @ 14.4g/t gold from 8m in CRC007 - Princess Lode; and
4.0m @ 10.8g/t gold from 69m in CRC029 - Democrat Lode.

The mineralisation is open along strike and at depth over a large area of the field and Capital views the area as having exceptional discovery potential.

Recent drilling and chip sampling has confirmed the presence of high grade gold shoots. The Board is waiting for the remaining diamond holes to be processed and assayed. Dependent on results Capital may look to progressing the Project with more drilling and a possible exploration decline. This will enable a bulk sample to be taken for metalurgical testing.

Cowarra project location map