Gold and Base Metals Exploration in Western Australia

Challa North

Challa North – Gold and Base Metals

The Challa North Project covers the northern part of the Windimurra Layered Intrusive Complex. The area is surrounded by large historic gold mines – Mount Magnet/Hill 50, Sandstone and Youanmi. Santa Fe has prioritised exploration at its Rosemary/Ann & N6 Copper/Zinc prospects and at our Pioneer/Windsor Gold prospect.

Rosemary/Ann & N6 - Copper Zinc

CRA Exploration Pty Ltd (CRAE) explored the Rosemary/Ann prospect in 1983 (WAMEX report A13821). They completed geological mapping, rock chip sampling, ground magnetics and a low powered ground electromagnetic survey. The CRAE rock chip ledger records assay results of up to 1,850ppm Cu and 5,400ppm Zn over 500m. No drilling is reported from these prospects. The Company collected two rock chips at the Rosemary prospect which returned 792ppm Zn, 536ppm Cu and 550ppm Zn, 364ppm Cu respectively.

In 2008 Maximus Resources Limited (Maximus) completed a regional broad spaced, 400m line, airborne EM (AEM) survey over an area that included the Rosemary / Ann prospect. This work located the N6 conductor about 1.5km to the south of the Rosemary / Ann prospects (WAMEX open file report A81908) The N6 conductor is described as a discrete mid-time conductor evident as peaks on 5 of the 100m spaced infill lines. No follow-up groundwork was reported by Maximus. The Company believes the Rosemary / Ann prospect together with the N6 AEM conductor 1.5km to the south may indicate a VMS system at depth.

    Following the end of the financial year, the Company completed a MLEM survey over the Rosemary / Ann prospect and a FLEM survey over the N6 airborne EM conductor. Four conductors were located at the N6 anomaly (Figure 3). No conductors were located at the Rosemary Ann prospect. The four conductors at N6 are shallow dipping and range from strong to moderate intensity. The top of the modelled conductors’ range in depth is from 50-100m.

    Pioneer/Windsor – Gold

    A total of three high grade historic mine workings with best grades: 8.9g/t, 19.0g/t and 25.3g/t have been mapped within a 2.2km Gold-Copper-Bismuth mineral system. 100m spaced magnetic data highlights at least two north-south structures with the eastern shear forming the contact between the Windimurra Igneous Complex (WIC) from the Yaloginda Formation and Big Bell Granites to the East. The western north-south shear appears to be the same structure that hosts the Windsor Castle mine workings 3.8 km to the south.

    The Leucogabbro country rock hosting the shear structures is classified as part of the lower zone of the Windimurra Igneous Complex (WIC). Field observations indicate that the fabric is distinctly massive and coarse grained away from the finite shear zones hosting the quartz veins and mineralisation. The main shear hosting the quartz veining appears to be strike continuous approximately north-south and narrow 2 - 4m wide; gold mineralisation within the system is likely to be focused along these narrow (conduits) shears. The country rock appears to be resistant to deformation and hence any locality where the structure needs to deviate slightly along the main shear corridor may act as a dilation point for gold mineralisation. The mineralisation occurs within a discreet 600m wide zone and is untested 1km to the north and 3.6km to the south of the surface outcrop due to shallow transported cover.