CUDAL
Gold, Copper – NSW
Alkane Resources Ltd 100% (subject to 2%NSR and buy back option to Rio Tinto Exploration Pty Limited)

The two exploration licences (EL 4155 & 5851) centred 25 km west of the city of Orange, adjacent to Alkane’s Molong prospect and the Cadia Valley Operations of Newcrest.  The tenements are located on an outlier of MVB andesitic volcanics, separated from the main belt to the east by the Columbine Mountain Fault, another major crustal structure.  Remnants of a Tertiary basalt sheet are scattered throughout the tenements.

Since 1991 Rio Tinto and partners have completed several exploration phases targeting Cadia-Ridgeway type monzonite hosted porphyry copper-gold systems.  This work included ground geophysics, surface geochemistry and 45 RC and 2 core drill holes.  The best results were returned from the Dairy Hill prospect where RC drilling of a quartz stockwork breccia in a dacite porphyry, with dimensions of 550 metres by 150 metres, generated broad low grade intercepts such as 48 metres grading 0.35% copper and 0.31 g/t gold.  Much of the target area and its extensions remain undrilled.

Several other targets have been partially tested, including Bowen Park where a large surface geochemical anomaly (3.7km by 100-500 metres) returned high grade rock chip values within a broad alteration zone.  RC drilling generated intercepts such as 33 metres at 0.21g/t gold and 0.31% copper; 6 metres grading 0.99g/t gold and 0.06% copper; and 2 metres at 2.73g/t gold and 0.66% copper.  Other skarn targets and magnetic anomalies have not been tested.

Alkane views the potential of the Cudal prospect as very similar to its Moorilda project located approximately 50 km to the south-east.  The target at Moorilda is structurally controlled gold mineralisation associated with a major break and favourable lithologies.

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