Continuity Risk in Narrow Reef Gold Deposits - Implications for Evaluation and Exploitation

Narrow reef gold deposits are generally less than 4 m in width and relatively complex geological phenomena. They often display variable geometry, attitude, continuity and internal architecture. Economic grades are mostly restricted to specific structural domain(s) and localised within discrete ore shoots that have a nuggety internal grade distribution. On account of the often extended history of geological events, the specific factors localising gold-rich domains are likely to be unique to a particular mine or even reef. These features lead to a high resource risk and require careful management during both evaluation and mining. The gross form, location and global continuity of gold reefs can generally be determined from surface diamond drilling leading to the definition of Inferred Mineral Resources. It is likely that for the definition of Indicated and Measured Mineral Resources underground development and/or close- spaced diamond drilling will be required. Understanding geometry and continuity permits the resource to be more effectively managed, lowering risk/uncertainty. This in turn will allow for well-informed financial and operational decisions. Most importantly, project expectations and milestones can be set at achievable levels.