WELLINGTON
Gold – NSW
Alkane Resources Ltd 100%

The Wellington Project is centred 15 kilometres to the southeast of the town of Wellington.  The project hosts several targets, including the Federal gold and Galwadgere copper-gold prospects.  The Galwadgere deposit, which has been the focus of most of the recent exploration effort, is located adjacent to favourable infrastructure, being three kilometres from the main Western Railway, near to power and water.

The Company carried out a drilling program in 2004-5 which has enabled an initial shallow resource to be calculated.  The main zone of mineralisation outcrops over a strike length of approximately 350 metres and is modelled over a total strike length of about 500 metres extending below Permian cover to the north.  The zone dips east at approximately 55°, plunges north at about 30° and varies in thickness from 5 to 35 metres.  The mineralisation consists of disseminated and stringer pyrite-chalcopyrite lenses within altered felsic volcanic rocks.  The system is structurally overturned and appears to be capped by a lead-zinc-silver-gold rich bedded massive sulphide with results up to 4% zinc, but to date this has rarely exceeded two to three metres in width.  There is potential for this horizon to increase in thickness to the north and down plunge. 

The initial resource estimate at 0.5% copper cut off is:-

These Mineral Resources are based upon information compiled by Mr Terry Ransted MAusIMM (Principal, Multi Metal Consultants Pty Ltd) who is a competent person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.  Terry Ransted consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.  The full details of methodology were given in the 2005 Annual Report

A scoping study based upon open pit mining and flotation concentration generated a positive cash flow but it was thought that a further 2 million tonnes were required to generate a favourable return on capital.  Several untested targets exist in the project area and these have resource potential, and further exploration has been planned to test the immediate area.

Full details of results are shown in the ASX Releases or Quarterly and Annual Reports in this web site