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GATEWAY MINING LIMITED

ASX: GML

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Gateway Mining is a gold and base metals explorer with mineral interests in Australia. Successful exploration, resulting in the identification of economically viable mineral resources is the key to the Company’s growth and enhancing shareholder value. To achieve this growth the company holds a substantial portfolio of projects including Gidgee in Western Australia, Cowra in New South Wales and within the Mt Isa and Hodgkinson Basin regions of Queensland. The companys short term priority is to prove up a gold resource at Gidgee where drilling has intersected significant gold mineralisation at Montague.

Rosie North

Rosie North is located on the contact zone between the Montague granodiorite to the east and basaltic rocks to the west. Gold mineralisation is closely associated with the shallow easterly dipping contact as evident from drilling and the mined Rosie Castle open pit to the south.

Drilling has successfully intersected gold mineralisation along the contact zone over a 250 metre strike length that is open to the north. Drill intersections include 5 metres @ 19.10 g/t, 6 metres @ 8.03 g/t and 8 metres @ 6.95 g/t gold within 40 metres of the surface. Significantly the most northern hole returned 16 metres @ 1.96 g/t gold and is open along strike and at depth.

Drilling has also intersected narrow steeply dipping high-grade quartz-pyrite gold veins on the footwall side (below) of the main Rosie trend. Drilling results have included 1 metre @ 28.0 g/t gold and 2 metres @ 12.76 g/t gold in fresh rock at a vertical depth of 60 metres. Significantly the vein mineralisation appears continuous down dip in the fresh rock zone and has been intersected over a strike length of 75 metres. It is possible the steeply dipping veins may represent link structures to another shallow dipping zone at depth as a repetition of the Rosie zone.

More recent drilling carried out by WCP Resources intersected broad zones of anomalous gold at depth in hole WRC012, 200m to the east of the main Rosie North trend on line 6965000N, with an intersection of 102m @ 0.42g/t Au, including 1m @ 9.16g/t Au, plus a number of other narrow +1g/t Au intersections, all below the base of weathering. These results are significant in that they are from a very poorly tested area, and indicate the potential for gold mineralisation away from the main gold trend.

Other intersections from this drilling included 5m @ 2.72 g/t Au and 1m @ 12.65 g/t Au in hole WRC011, which was drilled to test the depth potential of the main Rosie trend. The results of drilling to date have reinforced the prospectivity of the Rosie area, and further drilling is required.

b>S Bend

RAB drilling results from the S Bend prospect have confirmed a gold anomalous trend over 150 metres strike length. Gold mineralisation is again closely related to the granodiorite basalt contact zone. RAB drilling composite sample results have included 5 metres @ 13.15 g/t gold from 30-35 metres downhole, 5 metres @ 6.86 g/t gold from 18 metres depth and 10 metres @ 10.5 g/t gold. Future drilling will focus on a total strike length over 600 metres from S Bend to Rosie North. Infill drilling is required to further test the oxide zone and to test for hidden high-grade veins in the hanging wall basalts.

Pannikin

Drilling 200 metres south of the previously mined Montague Boulder open pit has intersected abundant gossanous quartz veining and encouraging gold mineralisation. Results included an 8 metre intersection at 3.88 g/t gold and 5 metres at 7.62 g/t gold.

Central

The Central zone comprises a high-grade core over 75 metres in strike length that plunges shallowly to the north. The down plunge potential to the north still needs further testing as does highly gold anomalous quartz veins to the west (hanging wall) and east (footwall) intersected in drilling. Excellent grades have been intersected at Central including 6m @ 39.85 g/t (includes 1m @ 173.39 g/t), 3m @ 14.56 g/t, 2m @10.14 g/t and 1m @ 20.86 g/t gold.

Bullseye

The Bullseye prospect is located 200 metres to the south west of Central. The prospect occurs at the intersection of the main northwest trending shear and the northeast trend that hosts the Central high-grade shoot. Drilling has returned 5m @ 22.18 g/t and 5m @3.33 g/t gold within granodiorite hosted quartz-pyrite veining. The Bullseye trend extends northwards for approximately 300 metres within a lower grade halo and will be further tested. At the southern workings, 500 metres south of the Central zone limited drilling, (two holes) intersected a series of steeply dipping quartz veins that returned up to 7.69 g/t gold within a lower grade halo and warrants follow up drilling.

Xenolith

At Xenolith wide spaced RAB drilling over a strike length of 600 metres has intersected a mineralised trend that warrants further testing. Drilling has identified a 20 to 30 metre wide mylonite zone with significant associated gold anomalism including 26 metres @ 0.10 g/t gold, 5 metres @ 1.09g /t gold and a wider zone of 20 metres @ 0.20 g/t gold.

Detour

At Detour, shallow holes have tested the workings and recorded elevated gold values. Results have confirmed the existence of east west striking quartz veins. More drilling is required to test for the displacement of bedrock mineralisation away from the main surface anomaly. Drilling results include 1 metre @ 1.90 g/t and 4 metres @ 0.48 g/t gold.

Whistler

The company completed a preliminary estimate of the underground gold resource below the old open cut Whistler pit. A diluted, potentially mineable resource was estimated using a minimum horizontal width of approximately 2 metres. An Inferred mineable resource in polygons with average grade > 3 g/t gold was calculated as:

106,000 tonnes @ 7.5 g/t gold (uncut) or approximately 26,500 ounces.
106,000 tonnes @ 5.7 g/t gold (cut-topcut 15 g/t gold) or approximately 20,140 ounces.

Julia's Fault

Exploration by Gateway has discovered the Julia's Fault prospect, located near the western edge of the Montague tenement package. The prospect is located on an interpreted north to northeast trending structure that also hosts "The Cup" copper prospect which is situated 2km to the south. Gold at Julia's Fault is associated with disseminated to massive sulphides, and is hosted with strongly altered metasediments near the contact with underlying volcanics. Significant results include 14m @ 2.94 g/t Au (including 9m @ 4.2 g/t Au), 9m @ 2.0 g/t Au and 10m @ 2.42 g/t Au. Further drilling is required to fully test the prospect, with mineralisation being open to the north and south, as well as at depth with some holes ending in mineralisation.

The Cup

The Cup copper prospect is located approximately 2km SSW of Julia’s Fault, and is hosted in similar units to that at Julia’s Fault, and possibly along the same structural zone. The prospect is a Gateway discovery, and drilling to date has intersected significant widths of supergene copper sulphide mineralisation associated with anomalous gold and silver. Best intersections to date include 80m @ 0.66% Cu (including 20m @ 1.46% Cu) and 45m @ 0.74% Cu (including 30m @ 1.0% Cu). Mineralisation has been intersected for 350m along strike, and is open to the north, south and down dip to the west, with further work required to test the potential of this prospect.

Victory Creek

Exploration by Gateway has discovered the Victory Creek and Hypotenuse prospects. At Victory Creek, shallow 40 metre deep RAB drill holes on 100 metre spaced lines discovered a large multi-element (gold-arsenic-antimony) geochemical anomaly. Limited deeper RC and diamond drilling intersected wide zones of intense alteration up to 70 metres wide that is directly associated with the geochemical anomaly. Results of an IP survey have also identified a bullseye resistivity high coincident with alteration and geochemical zones. Drilling results include 45 metres @ 0.24 g/t gold and 67 metres @ 0.44 g/t gold (including 11 metres @ 1.13 g/t gold), 7 metres @ 1.40 g/t gold and 7 metres @ 1.76 g/t gold. Gold mineralisation is hosted by conglomerate, shale and felsic units under 20-30 metres of transported cover in an area where very little previous exploration has been undertaken. Barrick drilled two holes into the prospect in 2006 to test the geophysical anomalies. Although the results of these holes were disappointing the company still believes that the area is prospective for gold mineralisation.

Legendre JV

A gold anomaly has been identified within the Legendre JV covering an area of 600 x 600 metres. The company believes these results are indicative of a potentially large gold bearing system and will continue to test the area. Previous RAB drilling results included 10 metres @ 0.53 g/t gold and 20 metres @ 1.75 g/t gold. Also at Legendre previous RAB drilling by Gateway exploring for gold mineralisation has delineated ultramafics over a 3.5 kilometre length hidden below transported lateritised cover. The shallow drilling discovered elevated nickel (>0.3%), copper (>900ppm) and platinum (up to 47ppb). An interpretation of airborne magnetics confirms a magnetic high coincident with the ultramafic zone as delineated in the drilling. The zone is open to the south. Results of petrological studies on samples from drilling indicate the rock sequence targeted by Gateway are of komatiitic affinity formed as extrusive lava flows. A ground EM survey will be completed to test for possible conductors and to aid in drill target generation. The prospective komatiitic sequence has never been prospected for nickel sulphide mineralisation.

Kingston

A central core of greater than 0.10 g/t gold surface material in laterites extends over one kilometre. Previous limited shallow drilling on two traverses intersected gold mineralisation and narrow gossanous quartz veining. The Kingston trend requires further testing.

Barrelmaker South-Transit

Previous RAB drilling intersected gold mineralisation over a strike length of 200 metres. Results included 15 metres @ 2.31 g/t gold. Limited RC drill testing (eight holes) at 50 metres centres over a length of 200 metres penetrated to a maximum vertical depth of 100 metres. Drilling intersected (1-6 metres wide) shallow westerly dipping quartz veins. Results included 1 metre @ 1.24 g/t, 1 metre @ 2.61 g/t, 1 metre @ 6.91 g/t and 2 metres @ 1.44 g/t gold. More drilling is needed to test the Transit area.

Bo Peep

Six holes were drilled 50 metres east and west of gold anomalism associated with quartz veining within the Bo Peep granite. Results confirmed an apparent east/west orientation to the mineralisation and included 5 metres at 0.72 g/t gold from 25 to 30 metres.

Crater

A virgin discovery was announced previously where drilling on one line returned 13 metres @ 2.16 g/t gold. Five RAB holes confirmed a northerly trending arsenic anomaly close to an interpreted mafic-felsic contact.

Cowra Project (Minotaur Exploration earning 75%)

The Cowra Project is located within the Molong volcanic belt in the prospective Lachlan Fold Belt of New South Wales. This region hosts some of the State’s most significant mineral deposits including Cadia, Ridgeway, Lake Cowal and Browns Creek. The area was acquired for its potential to for porphyry related copper-gold mineralisation in Ordovician volcanics and sediments. The project covers over 60 kilometres of prospective Ordovician rocks. Potential may exists for volcanic massive sulphide base metal deposits. Exploration results to date have been encouraging The style of mineralisation found to date suggest that the porphyry related copper-gold model is a valid model to apply to this area.

Gateway’s exploration has focused on Kiola where the Company has completed detailed mapping, soil sampling, ground magnetics, IP and drilling. Results have delineated numerous prospects including the Nasdaq gold and copper bearing skarn, with drilling returning grades of up to 25.30 g/t gold and 8.41 g/t gold in narrow zones.

Surprise Project

The project comprises of two EPM’s - 9053, 13677, - and four mining leases- ML’s- 2483, 2509, 2686 and 90102. Located south of Kajabbi in the Mt Isa region, the project includes the historic Surprise Mine, its northern and southern strike extensions and numerous prospector pits and historical workings in the central and northeastern parts of the project.

Much of Gateway’s original work was focused on copper-gold targets. More drilling is required at Startle where shallow drilling to 30 metres vertical depth has intersected copper mineralisation over an open-ended strike length of 400 metres. Copper-in-soil anomalous zones at the Shock prospect and in the northwest remain untested. A reinterpretation of all data highlighted four gold only target zones that warrant testing. Of particular i nterest are the Jolt, Dazzle and Astound gold-in-soil targets.

The Jolt gold-in-soil anomaly extends for 4.5 kilometres. The Company completed infill soil sampling on seven lines spaced at 200 metres apart over 1.2 kilometre strike length. Sample spacing on the remainder of the anomaly is on lines 1 kilometre apart. Results confirmed a continuous gold in soil anomaly that extends for up to 1 kilometre. Within this zone are four zones of up to 150-metre strike length that contain greater than 50ppb gold with peak values up to 0.16 g/t gold.

The Dazzle gold-in-soil anomaly is located parallel and to the east of the Surprise mine. The anomaly extends for 1.7 kilometres.

A program of rock chip sampling was completed to ascertain additional geochemical information. Results included up to 0.6 g/t gold from the Jolt anomaly and 0.3 g/t gold from Surprise extended.

Hodgkinson Basin Project

The Hodgkinson Basin Projects are located 120 kilometres north west of Cairns made up of Exploration Permits for Minerals, 9934, 10026 and 12240, with another Permit 11765 under application. Through a joint venture with Republic Gold Limited, Gateway retains a 6% interest until a decision to mine. Gateway can elect to dilute to a 2.6% share and contribute or to a 0.6% NSR royalty. The company has identified several coincident structural anomalous zones with the potential to host significant gold mineralisation. Most of these zones remain untested.

Mine For

gold, copper, manganese, cobalt, nickel, iron ore, platinum group elements

Location of operation(s)

Queensland, Western Australia, New South Wales

Address

Level 7 , Simpson House , 249 Pitt Street
SYDNEY, NSW, AUSTRALIA

Phone

(02) 9283 5711

Email

Website


Last Updated

6/4/2011

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.