The HJV began drilling at WKP in 2010 following extensive airborne and ground geophysics, surface geochemical sampling, and geological mapping defining a series of major resistive features within rhyolite volcanic (interpreted) dome features, that had the classic features of potential epithermal vein systems. These resistive features defined the Western, Central and Eastern domains that are used in modelling and resource descriptions.
Several campaigns of diamond drilling completed 15 diamond drill holes totalling 7,607 m with an average hole depth of 507 m:
Each program was successful in intersecting higher grade mineralization, and extensive low-grade mineralization, and with close coincidence with the resistivity models used in targeting.
Characteristically high grade narrow mineralized intersections were made on the margins of the resistive features, and on the margins of andesite dykes intruding the rhyolites.
This provided a strong geological/geophysical targeting tool that will direct further drilling campaigns.
These high grade intersections were responsible for the new discoveries of T-Stream Structure, The Western zone, and the EG (Eastern Graben Structure).
Three dimensional modelling of geology and mineralization was used extensively to aid targeting, and complemented the resource modelling used to undertake the maiden resource assessment of the project.
A significant drilling/technical program is planned, to expand the limits and reliability of the T-Stream high grade veins, collect environmental background data, and pundertake reliminary metallurgical testing to assist in a preliminary economic assessment, progressing toward a development decision.
Mineral Resource Reporting
The maiden resource assessment is presented in the independent technical report, entitled "NI 43-101 Technical Report on the mineral resource estimate for the Wharekirauponga (WKP) Gold Project, Hauraki, New Zealand" prepared by David Ross, P.Geo. Principal Geologist with Roscoe Postle Associates Inc., Toronto.
Mineral Resources for the WKP deposit were estimated using drill hole data available to May 31, 2013. At a cut-off grade of 3.0 g/t Au and a true thickness of 1.5 m, Inferred Mineral Resources are estimated to total 1.3 million tonnes at an average grade of 6.2 g/t Au and 9.3 g/t Ag for a total of 260,000 ounces of gold and 390,000 ounces of silver.
Resources are reported using three different grouping methods: by cut-off, by domain, and by geographic area as defined by the CSAMT low resistivity anomalies:
Broad low grade mineralization
Diamond drilling of the Broad Central Zone has outlined vein mineralization that demonstrates three-dimensional continuity, thickness, and grades that can potentially be extracted economically by open pit mining methods. However, based on identified mineralization and the project’s location (Crown-owned land, within a Department of Conservation-administered Forest Park) underground development of the high grade T-Stream vein is considered the most pragmatic target.
Mr Simon Henderson, MSc Geology (CODES), an AusIMM Chartered Professional under the Discipline of Geology; is a Qualified Person as defined by National Instrument 43-101 and an employee of the Company, has reviewed and approved the technical information given above.