Kanowna Lights Prospect

Western Australia, M27/0236 and M27/0177 (NMI 79%, Balagundi Gold 21%

The Kanowna Lights Prospect covers an area of 565 hectares and is ideally located in a high gold endowment region just 3kms north of the world class +5 million ounce Kanowna Belle Gold Deposit. It is also 2.5kms northwest of the 1 million ounce Red Hill Deposit and two historical production areas; the 250,000 ounce Kanowna Deep Leads and the 250,000 ounce White Feather reef system.

Historical exploration at the prospect identified two coherent north-south bedrock gold geochemical trends with lengths in excess of 800 metres. Recent drilling by NMI has identified potential for oxide gold mineralisation within these laterally extensive geochemical trends with drillhole KLRC010 returning intercepts of 7 metres @ 2.39g/t Au from 51 metres and 2 metres @ 2.00g/t Au from 64 metres within a broader gold mineralised envelope of 21 metres grading 1.35g/t Au. This intercept and an historical intercept of 21 metres grading 1.56g/t Au within the western geochemical trend suggests potential for oxide mineralisation over a horizontal width of 40 to 50 metres.

Within the eastern geochemical trend, drillhole KLRC011 returned an intercept of 13 metres @ 2.26g/t Au from 65 metres. This intercept and previously reported intercept of 15 metres @ 1.36g/t Au in KLRC005 has also identified potential for oxide mineralisation over a horizontal width of 40 to 50 metres.

Significant bedrock anomalism has been highlighted in a review of historical drilling with better drill intercepts of: 21m @1.56g/t Au (boh), 11m @ 0.99g/t Au (boh), 9m @ 1.01g/t Au (boh), 3m @ 2.05g/t Au (boh). 

Follow-up RC and diamond drilling programmes will continue to further evaluate the oxide and bedrock potential.

Successful gold exploration in the Kanowna Lights region has demonstrated that modern discoveries such as the Kanowna Belle Mine require an understanding that the upper surface of supergene enrichment in the area may occur at depths up to 50m below surface with much of the evidence of concealed mineralisation having been leached from the near surface environment. Exploration also needs to take into account that geochemical halos overlying concealed mineralisation may be displaced from the true position of the mineralisation.

Kanowna Lights Prospect Tenement Layout and Recent Drill Coverage: