Scott Lode: A Significant High Grade Gold Deposit

The Pajingo ore bodies consist mainly of auriferous quartz veins hosted by a suite of hydrothermally altered andesitic pyroclastics, volcanics and epiclastic sediments. Scott lode, the main economic deposit in the area, lies in a zone of major structural disruption and contortion. High grade gold and silver mineralisation is selectively mined by open pit methods. Standard grade control techniques and extraction methods were adapted to minimise mining dilution and to maximise metal recovery. Basic blending of grade ranges at the crusher has produced an average 10 gram/tonne gold head grade. The estimation of ore reserves calculated by both standard polygonal and geostatistical methods proved acceptable. Mineable reserves when compared to in pit reserves defined by blast hole drilling, indicate a decrease in tonnes and an increase in the grade resulting in an acceptable comparison of the total ounces of contained gold. The ore reconciliation of mined against milled ounces indicates that both ore reserve and grade control models underestimate the metal content in the orebody. Sampling techniques are being examined in an attempt to reduce this discrepancy.