Warumpi JV

The Warumpi project presents a unique and excellent opportunity to build the Company’s growth profile with the addition of a grassroots exploration project in a newly recognised geological belt, with limited previous exploration, which is considered to have excellent potential to host structurally controlled gold and copper, stratabound lead-zinc and intrusive related nickel-copper mineralisation.

Westgold’s exploration experience and track record in the region has played a part in securing this exciting greenfields opportunity. Heritage clearances are already in place which will allow the Company expedited access to the ground to conduct first-pass mapping and surface geochemical sampling programmes during 2012.

The area has not seen any substantial past exploration due to a previous lack of geological knowledge, a thin cover of dune sands and limited outcrop in an area with restricted access related to aboriginal freehold lands. However, recent work undertaken by the NT Geological Survey has redefined the Warumpi Province suggesting strong geological similarities in age and rock types to the Mount Isa, McArthur Basin and Broken Hill regions which host many large “world class” base metal deposits.

Westgold considers the region has affinities to the Tropicana Belt and therefore potential for gold mineralisation associated with the many large scale regional thrusts and faults evident in the regional geophysical data. There are also limited historical (and potentially unreliable) gold and copper anomalous rock chip samples along these interpreted structures which provide additional incentive to explore the region.

Westgold has entered into an option and joint venture agreement to explore and ultimately earn up to 80% equity in five tenements (3 granted, 2 applications) within the essentially unexplored Warumpi Province, located approximately 300km west of Alice Springs in the Northern Territory.

The terms of the agreement are summarized as follows:

Stage 1
$600,000 Expenditure within 2 years to earn 51% equity
Minimum expenditure of $250,000 in first year before withdrawal.
 

Stage 2
$2,000,000 Total Expenditure (including Stage 1) within 4 years to earn 80% equity.

FIGURE 1 - Locality Plan Warumpi Project