Exploration Results

The company’s exploration approach has involved rock chip and soil geochemical sampling. This has produced a number of geochemical anomalies which have been further investigated with geological and structural mapping. A number of new soil anomalies have been located during the past year, including the Pha Sod, Pha Daeng and Lok Sai Haai prospects.

Geology and Structure

Geological mapping by company and consultant geologists has resulted in a better understanding of the geological and structural setting at Pha Luang, and the context of zinc-lead mineralisation. The main structural direction trends 130-310 degrees and represents the strike of the limestone and surrounding shale and siltstone units. This trend is also parallel to a major thrust fault interpreted through the area.

Cross-cutting structures are believed important in focussing mineralisation into structurally prepared zones, and two major directions of 160-340 degrees and 040-220 degrees have been identified. At Nam Yen for example, mineralisation appears to be aligned along the 040-220 degree trend. A further structural trend is apparent dipping at about 20 degrees towards 040 degrees. As these structures become better defined, the company believes the controls on mineralisation will be become more understood resulting in an increased discovery rate.

Regional Geology

Soil Sampling and Prospect Location Map  

RC Drilling

RC drilling has been undertaken at the Pha Sod, Bon Noi, and Nam Yen prospects, with best results as follows:

Nam Yen  

The drilling at Pha Sod identified zinc sulphides for the first time. Although low grade in tenor, this discovery represents significant exploration progress. The topography and terrain at Pha Sod is very steep, and it was not always possible to locate the RC holes in the optimum positions to test the targets.

The drilling at Nam Yen has resulted in the delineation of a mineralised zone as shown below. It is still open in all directions, and further RC drilling is warranted to test for further extensions.

Drilling at the Bon Noi and Switchback prospects to test geochemical targets did not intersect sulphide mineralisation although a number of oxide intercepts were made, including:

Geophysics

Based on experience from other Mississippi Valley Type (MVT) exploration, and specific test work undertaken on mineralised cores from Pha Luang, the company undertook an Induced Polarisation (IP) geophysical survey over the Bon Noi, Nam Yen and Pha Sod prospects. The field survey was conducted by well-respected Kumsup Geophysics from Thailand, and the data was processed and interpreted by Southern Geoscience Consultants of Perth, Western Australia.

The survey showed a number of IP chargeability anomalies, which the company believed could represent sulphide mineralisation, and provided drilling targets at depths greater than those possible from surface geochemical data. A programme of 3 diamond core holes was undertaken to test the 3 main IP anomalies, BN1, BN3 and NY3. Unfortunately none of these holes intersected any visible sulphide mineralisation and the IP anomalies remain unexplained.