projects

 
T'Boli Gold-Silver project has a National Instrument, NI 43-101, Compliant Inferred Resource of 2,400,000 tonnes, grading 5.5 g/t gold and 21 g/t silver, for 420,000 contained ounces of gold and 1,600,000 ounces of silver.

This National Instrument, 43-101, Compliant Inferred Resource stems from the JORC Inferred Resource that included 23 diamond drill holes totalling 7,057 meters and 131 adits that were mapped, surveyed and sampled.

drilling intersections

The news release dated June 4, 2008 announced these results.

Cadan announced results from ongoing underground vein sampling over veins, ranging in widths from 40cm to 150 cm, and all located within an area of the northern vein system now identified for near term bulk testing to determine gold and silver grades as part of a possible larger underground resource. NI 43-101 compliant disclosure (PDF 1.69MB).

highlights

The news release dated June 4, 2008 announced these results.

The 3D block diagrams at right show the distribution of the resource at T'Boli.

T'Boli Gold Silver Project lies within the approved Mineral Production Sharing Agreement ("MPSA") 090-97-XI covering some 84.20 hectares that was granted November 1997.

background

The T'Boli project area is underlain by dacitic to andesitic, locally basaltic, agglomerates, tuffs and flows of the Mt. Parker volcano and intruded by high level dacite porphyry of the Malibato Intrusive.

The main focus of exploration interest is the structural corridor defined by the northwesterly trending Kematu and Desawu Faults. This fault corridor marks the southern margin of the Malibato Intrusive and is made up of a complex of high level dacite porphyry and tuffaceous material. A system of en echelon structural zones striking east-west cuts through both the porphyry and tuffs. These structures appear to be confined by the northwest trending Kematu and Desawu Faults and may represent the main pathways for upward movement of fluids in the late stages of the evolution of the volcanic system.

Two major zones of alteration have been identified so far, the T'Boli Zone which runs through the main workings from east to west and the Lam Asam Zone which passes through Blangas to the Lam Asam area of workings.

The T'Boli Zone is centred on a high grade epithermal stockwork vein system and is the subject containing the resource. At least three main high grade veins are located in the two stockwork zones (South Vein Set and North Vein Set) each with their associated mineralised alteration envelope.

T'Boli is an epithermal vein and stockwork system carrying gold and silver and is thought to be of the carbonate base metal hot spring style as defined by Leach and Corbett. In carbonate base metal hot spring style systems gold is associated with base metal introduction and is silver rich, these systems are regarded as developing at intermediate levels between porphyry and shallow epithermal systems. Carbonate base metal hot spring style systems are known throughout the SW Pacific and this class of mineralisation includes Acupan, Porgera, Wau, Kelian, Mt Kare and Gold Ridge, which are all multi-million ounce deposits.

A structural corridor between the Kematu and Desawu faults is the main focus of exploration interest where two main zones of alteration and gold mineralisation have been identified, referred to as the T'Boli Zone and Lam Asam Zone. The mineralised zones are hosted in a complex of high level dacite porphyry and tuffaceous material. To date, detailed exploration has been confined to the T'Boli zone.

The South Vein Set is hosted in tuff, close to the contact with the porphyry in an area of more intense alteration associated with disseminated pyrite. Veining is complex and gold is also disseminated in the host rocks. Small scale mining activity has been concentrated in rich veins along this diffuse contact between dacite porphyry and the tuff. The vein set can be traced over a strike length of some 700 metres with widths of at least 30 metres.

The North Vein Set bifurcates into North A and North B veins, and is hosted in competent altered dacite porphyry that is less altered and pyrite mineralised than the South Vein Set. Gold is commonly contained in discrete veins a few cm to 50 cm thick. Intervening rock is generally weakly mineralised. The North A vein set is approx 10 metres wide and has been traced over a strike length of 400m. The North B set has been traced for 800m at and average width of 30m.

Gold is associated with silver, including silver tellurides. Silver varies in its ratio to gold according to factors, and is of economic interest.

Four other vein sets have been identified, North Veins C, D, E & F, to the north.

exploration

exploration to date includes:

• Site map preparation using photogrammetric techniques from aerial photography
• Drilling and channel sampling of the main workings.
• Accurate survey by licensed surveyor of drill collars, adit collars and underground surveys of major tunnels.
• Resource estimations
• Preliminary metallurgy
• Re-interpretation of the earlier ground magnetic surveys
• Further soil sampling (ridge and spur) and interpretation of earlier geochemical work
• Initial regional exploration
• Adit mapping, channel sampling and positioning of many of the small scale local workings
• Soil sampling on 100m x 40-80 m grid over 65 lines
• Completion of a first phase of drilling of 23 diamond holes: 7,050m.

t'boli porphyry copper target

Exploration continues on the T'Boli copper soil and coincident magnetic anomaly covers an area of 1,000m x 1000m and located some 1.7km WNW of the defined gold-silver resource. Recent geophysical survey returned low chargeability in the area and may indicate a deep seated target. A helicopter geophysical survey is being scheduled and this should provide a more precise location of the target.