PROJECTS

PORTERS MOUNT GOLD-COPPER PROJECT
EL 6591 FORBES NSW

Licence Granted: 29th June 2006
Location: 40 kilometres southwest of Forbes
Area: 66 square kilometres (23 units)

Target: Intrusion and breccia related gold-copper-molybdenum porphyry system.

Commodities Sought: Gold, copper, silver, molybdenum

Exploration Philosophy:
Capital is searching for gold-copper and copper-molybdenum ore shells at depth and for shallower high-grade epithermal and skarn deposits within a geochemically fractionated and zoned porphyry-related hydrothermal system. The occurrence is in close proximity to the world-class Cowal gold deposit near West Wyalong and has features in common with the Kidston and Mt Leyshon deposits of North Qld.

Project Status:
Exploration in EL 6591 is being directed towards the location of gold-copper and copper-molybdenum ore-shells within what is interpreted to be a very large, vertically stratified mineral system. The principal target is a world-class, gold-copper-molybdenum deposit that would be amenable to extraction by bulk underground mining methods. Such a target is predicted to lie beneath a cap of heavily mineralised breccias that are interpreted from their geochemical signature and other characteristics to overlie gold depositional windows in the system. The licence is close to Barrackís Cowal gold mine (a resource of 51 Mt @ 1.7 g/t containing 139 tonnes of gold) and Newcrestís Marsden porphyry copper prospect (a resource of 190 Mt @ 0.35% copper). The tenement is strategically located within the very productive East Lachlan Orogen province which is also host to the world-class Cadia-Ridgeway and Northparkes copper-gold porphyry deposits.

Exploration had reached the stage where numerous very attractive drill targets with significant discovery potential had been defined within a broad area of geochemical and geophysical anomalism.

An aircore drilling programme targeting an oxide gold resource and several magnetic and gravity anomalies was carried out during March and April 2010 (see announcement). A petrological analysis of the rock chips of the programme indicated alteration.

Analysis of the drilling results and petroogical report indicate that targets exist below the cover and that future drilling would be deep diamond drilling to test the bedrock.

The system covers a large area approximately 5 x 3 kilometres and joint venture partners are being sought to accelerate the exploration programme.

Objectives of Programme:
Capital is aiming to drill an ore grade intercept within the system to form the basis for systematic resource outline drilling.

Porters Mount Location Map