PROJECTS

CHAKOLA GOLD & BASE METALS PROJECT
EL 5697 COOMA-BREDBO AREA NSW
(Harnett, Stonehenge, Gamma-Delta, Picasso, Driscolls Hill – Captial Mining 100%)

   

Licence Granted: 9 March 2000
Location: 15 kilometres north of Cooma
Area: 66.4 square km (24 units)

Target: Massive sulphide and disseminated gold & base metal deposits in Silurian volcanics
Commodities Sought: Gold, silver, copper, lead, zinc, molybdenum, antimony.

Exploration Philosophy:
In EL5697 Capital is searching for polymetallic ores of high unit value in volcanogenic (VMS) deposits with distinct lithological, geochemical and geophysical signatures. Targets include near surface oxide gold and supergene enriched copper deposits and deeper massive and disseminated sulphide deposits.

Project Status:
The company has outlined potentially mineable gold, silver and base metal resources within an extensive corridor of mineralisation at the southern end of the very productive Woodlawn ñ Captains Flat belt of mineralisation. The main mineralised corridor has been the focus for exploration within the tenement and positive results have continued to flow from rock chip and soil sampling and drilling since the inception of the project.

In 2008, an update of the gold-copper-silver-zinc-lead resource within the conceptual open pit at the Harnett prospect, as documented in the Company's 2008 Annual Report (page 6-7), was completed. This was done on the back of a third round of resource outline drilling the results of which also confirmed that there was additional resource potential for copper-gold rich lenses at depth and along strike. At the same time, the bulk of the metallurgical test work on the deposit was completed. Results were encouraging and further testing aimed at achieving the final float conditions is planned. Refinements were made to the Harnett Conceptual Mine Plan and an Environmental Impact Statement to support a Development Application has been completed and lodged.

An 8km long horizon of high exploration potential has been identified in the tenement and a within pit resource over a 720m strike segment at the Harnett Central prospect has been established at:

1.22mt @ 0.8 g/t Au, 0.5% Cu, 0.7% Zn, 0.4% Pb, 8.1 g/t Ag

This at an overall grade of 3.1 g/t gold equivalent, containing 31,000 ozs gold, 317,000 ozs silver and 6,100 tonnes copper. The mineralisation is open at depth and along strike within an an extensive sub-grade envelope. 90% of the copper and 80% of the gold is recoverable in a bulk sulphide flotation concentrate along with lead and zinc.

Capital is working to convert the Harnett resource to a proven ore reserve and to locate additional resources elsewhere in the tenement.

Throughout the 2009 June Quarter statutory consultation was completed and representatives from the Cooma Monaro Shire Council, the DA management authority, visited the proposed Harnett mine site to inspect the area and to review the concept plans in the field.

As a result of the above meeting a list of requirements and issues were forwarded to Capital Mining to address. An independent environmental assessment was commissioned to review the Project. The Board wishes to progress the Project and has committed funds to initiate Stage 1 requirements of this report.

   

Chakola Location Map