PACE Discovery Drilling embodies a supportive partnership with industry to undertake drilling in areas determined by DMITRE to have economic mineral potential, but currentlyhampered by cover rocks or other factors that discourage investment. PACE Discovery Drilling 2012 preferentially funds high quality, technically and economically sound projects that promote greenfields exploration targets.

Successful proposals are assessed as those containing the highest quality exploration targets based on sound technical, scientific and commercial criteria. The successfulapplicants have approximately one year to complete their programs and submit reports and drilling samples.

In 2011 Golden Cross reviewed geophysical data to identify six targets with similar characteristics to known IOCG prospects and deposits elsewhere in the Gawler Craton as shown in Figure 1. These were reported to the ASX on 29 August, 2011. A further fourteen targets have since been identified in 2012 from images prepared by Melbourne-based consultants, PGN Geoscience. Some of the various models used are shown in Figure 2.

Golden Cross has been advised that funding of $75,000 has been approved towards the drilling costs of the 2011 targets. Accordingly the company will progress access requirements for the sites and relevant clearances under agreements it signed with Native Title Claimants during 2011, with a view to commencing drilling as soon as practical. GCR continues to progress its 100%-owned Copper Hill project with metallurgical testing at ALS Metcon in Sydney and ALS Ammtec in Burnie delivering improved results. Potential exists to considerably reduce the Mill and Plant capital costs for Copper Hill if an existing one, currently for sale, proves suitable. An inspection has been carried out and financial studies are underway.

GCR will soon announce new resource estimates for its Cargo Gold Project.

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•  Chairman Chris Torrey has resigned to head up Silver City Minerals. Mr Torrey has guided the company through several critical phases which have seen substantial increases in the Copper Hill resource, completion of a detailed study of strategies to maximise production from Copper Hill and delivery of the Copper Hill Scoping Study. His support for GCR’s expanded exploration activities has been greatly appreciated. He has assisted in the search and selection of a new chairman and he leaves GCR with heartfelt good wishes and the thanks of directors and staff.

Copper Hill

• 2 million tonnes per annum mill and plant capital estimate of $92 million
• Total estimated notional capital cost, all-up, of $155 million
• Metallurgical studies continuing with improving recoveries

Other Projects

• Cargo twin-hole drilling completed: 3 core holes totalling 344 metres
• Queensland Coal – new 2,250 square kilometres of tenement applications in the Eromanga Basin
• South Australia – Gawler Craton IOCG targets – geophysical interpretation completed. Access and drill planning continuing

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Golden Cross Resources (GCR) has completed a program of three twin PQ/HQ core holes to confirm previous reversecirculation drilling results at the Spur-Dalcoath gold targets at Cargo.

The Cargo Goldfield lies 15 kilometres west of Cadia and 50 kilometres south of GCR’s advancing Copper Hill project containing resources of over 500,000 tonnes of copper and 1.35 million ounces of gold.

Cargo has been mined intermittently for over 140 years. Cyprus Gold Australia drill-tested gold zones in the 1980’s defining what are now potentially economic bodies of near-surface gold mineralisation.

A mineralised zone of 55m grading 1.27 g/t gold from 53m [compared with 54m @ 1.04 g/t gold from 41 metres in JG74] contains, using a 0.5 g/t gold cut-off grade and 2 metre maximum internal dilution interval, the following economic intercepts:

• 6.3 metres @ 2.82 g/t gold from 59.7 metres
• 13 metres @ 3.99 g/t gold from 69 metres
• 3 metres @ 1.06 g/t gold from 102metres

The upper two zones consolidate into 25.3 metres @ 2.79 g/t gold if a 0.3 g/t gold cut-off with a 2 metre maximum internal dilution are applied.

As with SD003, reported by GCR on the 16th March, there is considerable additional information now available from this core drilling program of the internal grade distribution with peak values of 25.7, 10.85, and 9.12 g/t gold over one metre intervals within thinner, but very high grade, sub-zones.

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Golden Cross Resources (GCR) has commenced a program of three twin HQ core holes to match against previous reverse-circulation drilling at the Spur- Dalcoath gold targets within the Cargo Project. The Cargo Goldfield lies 15 kilometres west of Cadia and has been mined intermittently for over 140 years. Previous explorers, Billiton Australia(Shell Metals) and Cyprus Gold, drilltested several anomalous gold zones in the 1970’s and 1980’s and defined what may be, potentially, payable bodies of near-surface gold mineralisation.

Using a 0.5 g/t cut-off grade and 2 metre maximum internal dilution interval, SD003 returned:

10 metres @ 0.67 g/t gold from 5m
7 metres @ 0.5 g/t gold from 19m
30 metres @ 1.89 g/t gold from 33m
1 metre @ 38.0 g/t gold from 95m

There is notable internal grade variation within SD003 compared with the twinned hole CRC6, especially within higher grade zones. However, a direct comparison with CRC6 (58m @ 1.10 g/t gold) using a 0.3 g/t gold cut-off gives a slightly longer and slightly higher grade interval from SD003 of 63 m @ 1.15g/t gold.

These intervals are close to true width based on observations of the core and the extensive historical RC drill data set for the Dalcoath-Spur vein system. Selected core from this program will form the basis of metallurgical test-work to determine gold recoveries from a range of processing options.

Spur-Dalcoath

The Spur-Dalcoath area comprises several sub-parallel gold-bearing quartz vein systems with gold-bearing disseminated and veined pyrite +/- chalcopyrite zones, radiating from the central Cargo Porphyry Intrusion.

Close-spaced historical RC drilling generally extends to 50m vertically with a few holes testing deeper targets.

Initial pit optimisations, based on the Cyprus Gold and GCR drill data and using current gold prices, show clear potential for an economic resource to be defined at Spur-Dalcoath to a depth of 75 metres. H&S Consultants has been retained to estimate an Inferred Resource.

Results from the other two twin holes are expected within the next few weeks. SD004 has been logged, cut, and samples delivered to the ALS Laboratory in Orange. Hole SD005 is in progress and initial core is being cut and sampled. SD003’s location is shown in Figure 2 and co-ordinates for all three twin holes are listed in Table 1.

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Golden Cross Resources (GCR) has completed the first round of core drilling at the Spur-Dalcoath gold targets within the Cargo Project. The Cargo Goldfield lies 15 kilometres west of Cadia and has been mined intermittently for over 140 years. Previous explorers, Billiton Australia (Shell Metals) and Cyprus Gold, drill-tested several anomalous gold zones in the 1970’s and 1980’s and defined what may be, potentially, payable bodies of nearsurface gold mineralisation. GCR followed up with extensive drilling here in the late 1990’s.

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• Scoping Study delivered with plant capital cost estimate at $92 million
• Total Geological Resource: 215 million tonnes at 0.3% copper and 0.24 g/t gold
• Constrained Resource:153 million tonnes containing 511,000 tonnes of copper and 1.35 million ounces of gold
• Metallurgical studies continuing

Other Projects

• Cargo drilling completed: 6 holes totalling 757.9 metres
• Gawler Craton copper-gold: progress with access and other approvals for planned drilling

A revised resource estimate for Copper Hill has been made by Richard Lewis, principal of Lewis Mineral Resource Consulting Pty Ltd, FAusIMM, who is a Competent Person under the meaning of the 2004 JORC Code.
The new resource is bounded by a pit design based on elevated copper and gold metal prices. There is additional mineralization estimated outside this pit design, but at present does not have reasonable prospects of eventual economic extraction and cannot be included as a resource. These resources and additional mineralization are shown in Table 1.
The total resources are the same grade and lower in tonnes than those reported in June 2011. The changes have resulted from the additional drilling carried out, the different modelling technique used and do not include the resources outside the Reporting Pit.

Click here to download the presentation as a pdf file

Click here to download the presentation as a pdf file

Click here to download the presentation as a pdf file