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IRONHURST TENEMENT (EPM 25817)
- IRONHURST BRECCIA PIPE

Introduction

QUEENSLAND FLAGSHIP PROSPECT – IRONHURST GOLD AND POLYMETALLIC BRECCIA PIPE

Many of the significant gold deposits in north Queensland are related to the Permo- Carboniferous volcanics and associated intrusives including the Kidston, Mount Wright, Mount Leyshon and Red Dome gold deposits. A Permo-Carboniferous subvolcanic intrusive breccia body, the Ironhurst Breccia, occurs in the Ironhurst Project area.

<See Figure 1: 150216_25817 Red_Landsat_150k_Roads_EPM_Townst>

The Ironhurst breccia pipe exhibits very similar characteristics to Mt.Wright, Kidston and Mt. Leyshon gold mines*. In particular the Mt.Wright gold mine exhibits the same metal zonation near surface as Ironhurst does. The key to the analogy of the two is the strongly anomalous lead, zinc and silver results from drilling into the tuffaceous cap of the pipe at surface.

The Ironhurst breccia pipe is a brownfields project that has had $AUD2M+ spent to date on extensive geochemical/geophysical surveys and drilling. The advanced status of this prospect highlights just how close to discovery this gold deposit is.

The breccia body at Ironhurst is surrounded by high order BCL gold values in streams draining the area. Considerable testing of this body had previously been completed by Seltrust who concluded that this particular breccia had been deeply eroded with the removal of any gold deposit that may have occurred within the breccia. This conclusion was based on the presence of substantial base metal values within the shallow portions of the body. At that time the geological model for this style of gold deposit indicated that base metals were considered to have been deposited beneath the gold zone and within the root zones of the pipe. More recent information from these bodies shows that base metals in fact usually overlie the gold bearing zone.

“The more recent interpretation of the metal distribution in these styles of deposits open up the possibility of a gold deposit at greater depth in the Ironhurst breccia which may be discovered by deeper drilling”. (Lesh & Lewis, 2007). This modern interpretation is founded on decades of studies on this style of gold deposit and we now know that the geological models of historic times were the complete opposite of what they should have been.

Diamond drilling core and rock chip samples from historic diamond and reverse circulation drilling programs have been located and stored. These will be used to test for pathfinder elements that have not been tested for in the past. These results will be used by our interpretation expert to assist in vectoring into the orebody and finalising future drillhole placement.

To date, no expert interpretation has been undertaken on the regional structural controls and complete geophysical and geochemical datasets. We are excited to announce that leading interpretation expert at Moore geophysics has been engaged. Once the report is finalised, we expect future drill targets at Ironhurst identified and subsequently drilled. It is our belief that this drilling program will lead to the discovery of the gold rich ore body that exists at depth within the pipe.

In summary, we are extremely excited with the Ironhurst prospect. We believe that the discovery drillhole at the prospect is within reach, due to the extensive historic work that has been completed to date. Minimal work is required to define drilling targets at depth and once complete, the discovery of the Ironhurst gold deposit will be close to fruition.

• Kidston Gold Mine - Extracted 5 Million ounces of gold, equivalent to USD$ 6.17 Billion.
• Mt. Leyshon Mine – Extracted 3.5 Million ounces of gold, equivalent to USD$ 4.3 Billion.
• Mt. Wright Gold Mine – Resource of 1.3 Million ounces of gold, equivalent to USD$ 1.6 Billion

<See Figure 2: Exceptional Geological Location>

Ironhurst Geology

The oldest rocks in the Georgetown Inlier consist predominantly of Proterozoic metasediments, metabasalts, granites and volcanics. The metamorphic grade within the Proterozoic rocks increases generally from lower greenschist in the western region of the inlier to amphibolite facies (Einasleigh Metamorphics) in the east. Extensive granitoid intrusion occurred throughout the eastern part of the inlier during the Middle Proterozoic and again in the Siluro-Devonian period. A number of Permo-Carboniferous volcanics complexes, including the Newcastle Range, Maureen and Cumberland Range volcanic centres, indicate widespread felsic volcanic activity at this time. The inlier is partly overlain by Mesozoic and Cainozoic sediments of the Eromanga and Carpentaria Basins to the north and west indicating an extensive terrestrial sedimentary event in Mesozoic to Tertiary times.

The predominant structural trend in the Georgetown Inlier is oriented east west in the western portion but this becomes more north-south in the east.

<See Figure 3: Ironhurst Aerial image>

Within the Ironhurst Project area, the Lane Creek and Corbett Formations of the Middle Proterozoic Robertson River Subgroup of the Etheridge Group form the basement rocks. These are mainly comprised of schistose metasediments derived from siltstone to sandstone. Some of the finer grained units are graphitic. These metasediments have been intruded extensively by dolerite sills and dykes of the Cobbold Dolerite.

Adjacent to the Ironhurst Project area, the Forsayth and Delaney granites of Middle Proterozoic age intrude the metasediments and dolerites. A further intrusive of Permian age (Yataga Granodiorite) intrudes the Proterozoic rocks to the east of Ironhurst. The Maureen volcanic complex of Permo-Carboniferous age lies 6 km northwest of Ironhurst. This complex consists of a series of felsic volcanics and associated high level intrusives. It is likely that the volcanic breccia pipe which is mineralised at Ironhurst is genetically related to the Maureen volcanic complex.

Palaeozoic units in the project area include coarse sediments of the Devonian age Gilberton Formation and felsic volcanics of the Permian age Agate Creek Volcanics. The Gilberton Formation which occurs north of Gilberton generally consists of poorly sorted terrestrial sandstones with conglomeratic lenses. The Agate Creek Volcanics which occur in the same general area include andesitic to rhyolitic lavas and tuffs. Flat lying Mesozoic sandstones and conglomerates of the Yappar Member of the Gilbert River Formation overlie the older Proterozoic and Palaeozoic rocks immediately west of the project area.

<See Figure 4: TMI Magnetic image highlighting reverse polarised feature at Ironhurst>

<See Figure 5: RBG Radiometric stretch with KThU Spectrum overlain>

Geochemical Surveys

Historic geochemical surveys have identified highly anomalous gold, silver, lead and zinc values at the Ironhurst prospect.

ANOMALOUS SOIL GEOCHEMISTRY OVER PIPE
<See Figures 6a - 6g>

COMPARISON OF METAL ZONATION AT MT.WRIGHT AND IRONHURST
The anomalous lead, zinc and silver present in the tuffaceous cap at the Mt.Wright breccia pipe, highlights the gold potential at depth in the Ironhurst pipe. Examination of the geological lithology logs at Ironhurst show that only a few of the drillholes have pierced the tuffsite cap into the breccia below.

METAL ZONATION AT THE MT. WRIGHT (BRECCIA PIPE) GOLD MINE
<See Figure 7v>

METAL ZONATION AT IRONHURST
<See Figures 8a - 8g>

BEST INTERSECTIONS FROM HISTORIC DRILLING DATA

Collar ID Range Depth %Zinc g/t Gold g/t Silver g/t Bismuth %Copper
IHP1 0 - 28m 28m 1.5 - - - -
IHP5 58 - 70m 12 m 1 - - - -
IHP6 79 - 116m 40m 1 - 3 - -
IHP7 22 - 48m 26m 0.6 - 5 - -
IHP-9 8 - 20m 14m 0.6 - - - -
IHP10 84 - 104m 20m 10.7 - 13 - --
IHP15 98 - 112m 14m 1.97 - 6.7 - --
IHP21 76 - 86m 10m 1.78 - - - -
IHP23A 161 - 301 140m 2.2 0.09 3.4 - -
IHP24 81 - 285 204m 0.61 0.06 4 - -
IHP25 25 - 219m 194m 0.58 0.07 3 - -
IHP28 8 - 76m 68m - - 5.9 - -
IHP30 16 - 132m 116m - - 3.05 - -
IHPD32 0 - 264m 264m - - 4.67 - -
22 - 152m 130m 0.41 - - - -
289 - 303m 14m - 0.24 2.3 18.5 0.05
348 - 360m 12m - 0.28 2.2 17.4 0.04

These historic drilling intersections illustrate the highly anomalous grades of zinc and silver in the tuffaceous cap in the shallow portions of the pipe at Ironhurst.

Note: The runs of low grade, but highly anomalous Gold, Bismuth and Copper in the deeper portion of diamond drill hole - IHPD32. This suggests that the deeper Gold-Bismuth-Copper-Silver metal zone encountered at Mt.Wright is just beginning to emerge at Ironhurst.

Geophysical Surveys

AEROMAGNETICS AND AERORADIOMETRIC SURVEYS

Extensive geophysical surveys have been conducted over the breccia pipe and surrounding tenement. This data will be used by our interpretation expert to define porphyry base metal and epithermal precious metal drilling targets.

These include:
• aeromagnetic and aeroradiometrics,
• ground magnetics
• Pole-dipole IP
<See Figure 9a>

GROUND MAGNETICS

<See Figure 9b and 9c>

POLE-DIPOLE INDUCED POLARISATION (IP) SURVEY

CHARGEABILITY

<See Figure 10a - 10d>

The IP chargeability anomaly that begins to appear at depth at Ironhurst is believed to be the emergence of the gold rich ore body. Expert interpretation of this data is currently being undertaken and drilling targets will soon be identified.

RESISTIVITY

<See Figure 11a - 11d>

Prospect Summary

The Ironhurst breccia pipe is an exciting investment opportunity

• Ironhurst is an advanced brown fields project with $AUD2M+ spent to date on extensive geochemical/geophysical surveys and drilling.

• Shows very similar characteristics to Kidston, Mt. Leyshon and Mt.Wright gold mines*

• Interpretation expert engaged to analyse structural controls, geophysics and geochemical datasets.

• Historic diamond drill core and RC chips located and currently undergoing pathfinder analysis.

• Limited work required to define drilling targets.

• Excellent potential to realise a 1 Million ounce plus gold orebody with minimal expenditure.

*Kidston Gold Mine - Extracted 5 Million ounces of gold, equivalent to USD$ 6.17 Billion.
Mt. Leyshon Mine – Extracted 3.5 Million ounces of gold, equivalent to USD$ 4.3 Billion.
Mt. Wright Gold Mine – Resource of 1.3 Million ounces of gold, equivalent to USD$ 1.6 Billion

CLARK HILLS TENEMENT (EPM 25857)
- HUONFELS PROSPECT

Introduction

HUONFELS PRECIOUS AND BASE METALS PROSPECT

The Huonfels precious and base metal prospect lodes occur within an area 3 km long x 1 km wide.

<See Figure 1: Huonfels surface & interpreted geology>

The prospect consists of two principal lode systems, the Kalevala system hosted by Proterozoic granite and the Asgard system hosted by metasediments. The lodes range from 300 m to 1000 m long and contain precious-metal rich shoots with short strike lengths of between 50 m and 100 m.

Mineralisation within the shoots is erratic. To date the richest mineralisation has been detected in the north-east shears. Wide alteration zones and lode stockworks occur at shear intersections. Gold, silver and arsenic values are widespread in the gossanous quartz lodes in the northern part of the prospect while lead and zinc are more common in the south where the lodes are a gossanous breccia rather than gossanous quartz veins. This zoning takes place over some 3 km on surface.

The possibility of a porphyry system occurring at Huonfels is increased by:

• A small outcrop of Mt Darcy micro-granodiorite, 2 km west of the lodes. Rock types of this composition are seen at Mt Turner and Phyllis May porphyry systems.

• Pebble dykes noted in CRAE’s drilling at the southern end of the lead-zinc rich end of the mapped shear system.

Huonfels Geology

All basement rocks in the Huonfels district are mapped as within the Lower Proterozoic Lane Creek Formation: weakly metamorphosed sediments grading into mica schists and quartzites. The metamorphic grade at the Huonfels Prospect is not as high as seen in the Red Dam and Lane Creek Project areas. The Middle Proterozoic Forsayth granite crops out in the northwest and hosts some of the Huonfels Prospect veins.

The Carboniferous Dismal Creek Formation acid volanics intrude the basement in the southwest and irregular outcrops host the southern part of the Huonfels Prospect. Here they are breccias containing fragments of rhyolite and basement metasediments.

Several outliers of Mesozoic cap high ground in the EPM area and lateritised rubble and scree often obscure the older formations.

Structurally, the fault systems trend north and east of north and this domain is bounded by the major Somerset Fault to the east of the EPM. East of the Somerset Fault the fault trends are predominantly easterly (Davis, 2005).


Geochemical Surveys

The Huonfels Prospect was located during the course of a regional stream sediment sampling program.

The precious-metal rich lodes consist of rhyolite, quartz veining and sulphides. High silver values are present with some spectacular values in gossan float (2750 g/t silver and 24 g/t gold in a CRAE grab sample). Elevated lead, zinc and arsenic values are associated with the lodes.

CRAE tested Huonfels with 50 RC percussion holes, of which 20 resulted in economically significant intersections

SOME OF THE BETTER DRILL RESULTS FROM CRAE’S WORK ARE

Collar ID From To Interval g/tGold g/t Silver

Collar/Trench ID From (m) To (m) Intersection (m) Gold g/t Silver g/t
RC86AS34 6 7 1 95.8 210
RC86KA8 8 10 2 59.6 24
HTR02 15 16 1 45.2 100
RC86AS42 4 6 2 16.64 275
HTR01 31 32 1 15.6 26.2
HTR01 32 33 1 11.7 33.8
HTR10 3 4 1 9.93 100
HTR01 19 20 1 8.47 70.2
HTR08 23 24 1 8.32 4.8
RC86KA8 6 8 2 7.84 24
RC85KA4 18 20 2 6.86 1375
RC85AS16 10 12 2 6.25 35
HTR12 5 6 1 5.87 74.4
HTR08 22 23 1 5.49 4
RC86AS34 7 8 1 5.31 185
HTR25 12 13 1 5.01 43.1
HTR12 4 5 1 4.93 72
RC85AS1 60 62 2 4.16 3
RC86AS26 18 19 1 3.86 15
HTR03 20 21 1 3.78 100
HTR01 33 34 1 3.66 20.5
RC85KA3 4 6 2 3.46 1800
RC86AS42 2 4 2 3.14 88
RC86AS26 16 18 2 3.12 20


Drill holes in the south have returned wide zones of base metal mineralisation (64 m grading 0.21% zinc and 24 m grading 0.37% lead in CRAE drill hole RC85CY1) (Davis, 2005).

Geophysical Surveys

AEROMAGNETICS AND AERORADIOMETRIC SURVEYS

CRAE completed aeromagnetic and aeroradiometric surveys in combination with ground magnetics and IP. This data will be used by our interpretation expert to define drilling targets at Huonfels.

<See Figure 2: TMI Image with vein system and structural interpretation overlay>

Prospect Summary

Independent geological review of the Huonfels precious metals prospect has indicated the potential for a bonanza grade economic feeder source at depth. The base metals to precious metals zonation despite being indicative of an IRG system, is also suggestive of a nearby large tonneage porphyry intrusion.

CLARK CREEK TENEMENT (EPM 25610)
- CLARK HILLS FLAGSHIP GREENFIELDS PROSPECTS

Introduction

FLAGSHIP GREENFIELD PROSPECTS

The Clark Hills and Clark Hills north prospects are potential NW continuations of the Huonfels prospect, which is situated to the South-east. The prospects also exhibit the same epithermal textures and base metal associations.

Gold from historic rock chip sampling has returned grades of up to 15.6 grams per tonne gold, with anomalous silver and base metals.

<See Figure 1: Two target areas identified. Clark Hills and Clark Hills North. TMI image with structural interpretation overlay.>

Clark Creek Geology

Proteozoic metasediments and granite outcrop sporadically to the south and north of the Clark Hills, which comprise Mesozoic sandstone. Two areas of quartz veining and gossanous material are present. These are shown on the plan as the Clark Hills and Clark Hills North prospects.

  In the Clark Hills prospect immediately south of the Mesozoic outcrop, gossanous quartz veined schists and epithermal quartz veins and breccia occur. A coincident broad magnetic low anomaly requires further work.

  To the north of Clark Hills, sporadic basement outcrop is again encountered. In this case (Clark Hills North prospect), epithermal-style quartz veining in granite host is noted in several outcrops trending NW-SE. An initial sample of quartz material returned an assay of 15.6 ppm Au (Broadbent, 1990).

Geochemical Surveys

An extensive geochemical database has been created from all historic work within the area. Subsequent GIS work highlights a trend of anomalous precious and base metals from Huonfels through to Clark Hills North.

<See Figure 2: Gold and Arsenic at Clark Hills>
<See Figure 3: Silver and Zinc at Clark Hills>
<See Figure 4: Copper and Lead at Clark Hills>

Geophysical Surveys

AEROMAGNETICS AND AERORADIOMETRIC SURVEYS

CRAE completed extensive regional aeromagnetic and aeroradiometric surveys. This data will be used by our interpretation expert to define porphyry base metal and epithermal precious metal drilling targets.

Prospect Summary

The Clark Hills prospects are epithermal precious and base metals targets. Like Huonfels, these prospects are related to the western margin of the Maureen cauldron.

It is the company’s intention to use all of the extensive historic data to identify potential porphyry base metal and epithermal precious metal “feeder” deposits.

Expert interpretation of this data is currently being undertaken.

YATAGA TENEMENT (EPM 25608)
- D2 PROSPECTS

Introduction

D2 PROSPECTS

<See Figure 1: Yataga D2 Spot10k geochemical>

The D2 prospects are associated with the northwestern margin of the Yataga granodiorite; a collapsed cauldron of permo-carboniferrous origin.

Coincident ~ N-S faults shear the margin and have provided a highly prospective geological setting for several styles of economic metal deposits.

Yataga Geology

D2

The D2 anomaly is located over the contact of the Yataga Stock and extends into the stock and the hornfelsed margin. Host contact rock types include variable schists, metaquartzites and metavolcanics of interpreted basic composition. Rhyolite and porphyry intrusives anomalous in copper and silver occur within the contact zone. Disseminated pyrite is seen occasionally.

D2S (DAMBO) PROSPECT

The Dambo prospect, occurs within the Yataga stock approximately 800 m east southeast of the D2 prospect. Four shallow costeans were historically cut in an area of gossan float to expose several east dipping veins or zones, up to 5 m wide, in sericitised granodiorite. Chalcopyrite and bismuthinite are present.

Geochemical Surveys

D2 PROSPECT

After discovering the anomalous geochemistry by stream sediment geochemical sampling, CRAE carried out reconnaissance soil geochemical sampling.. Five soil geochemistry traverses, up to 1.5 km long, defined a geochemically anomalous zone 2.5 km long, ranging in width from 200 m to 400 m, which is open ended to both the east and west.

Arsenic values in soils over both metasediments and metadolerites are elevated above 100 ppm within the zone straddling the granite contact. Two reconnaissance soil-sample lines 500 m apart returned several gold values greater than 100 ppb gold. Rock chip and stream sediment samples have returned bonanza grades of up to 460 g/t gold.

D2S (DAMBO) PROSPECT

The Dambo prospect, occurs within the Yataga stock approximately 800 m east southeast of the D2 prospect. Four shallow costeans were cut in an area of gossan float to expose several east dipping veins or zones, up to 5 m wide, in sericitised granodiorite. Chalcopyrite and bismuthinite are present.

The zone of altered granite enclosing the prospect measures some 800 m by 200 m. The anomalous geochemistry along the contact zone of the stock in conjunction with mineralised intrusives and the Dambo prospect suggest that the source may be from a late stage mineralising phase of the Yataga complex. BR believes that considerable potential exists for the discovery of an intrusive related gold base metal system masked by the complexity of the Yataga Stock or its contact zone (Davis, 2005).

Geophysical Surveys

AEROMAGNETICS AND AERORADIOMETRIC SURVEYS

CRAE completed extensive regional aeromagnetic and aeroradiometric surveys.This data will be used by our interpretation expert to define porphyry base metal and epithermal precious metal drilling targets.

<See Figure 2: 150205 D2 Mag Geochem>

Prospect Summary

The D2 projects are highly prospective for numerous styles of economic metal deposits.

Coincident geological structure and geophysical anomalies highlight the potential of the area. Bonanza gold results from historic sampling programs confirm the presence of precious metals.

There has been very little conclusive work on the projects and the area reims highly underexplored.
GREENFIELDS PROJECTS (EPM 25608, 25610 & 25869)

Greenfields Overview

GREEN FIELDS PROJECTS (EPM 25608, 25610 & 25869)

<See Figure 1: EPM25608_25610_GreenfieldTargets_Mag>

EPM 25608

1. New Moon Camp Prospects
CRA discovery. Favourable North-North East trending structure. Highly anomalous gold results.

2. Target
Excellent potential for uranium deposition based on structure and drainage

3. Clark Hills Prospects
CRA discovery. Highly anomalous in gold, silver, arsenic and base metals

4. Huonfels North Prospect
Favourable North- North East trending structure. Highly anomalous in gold, silver, arsenic and base metals

5. Trench 1 Prospects
Numerous uranium anomalies identified by ESSO

6. Unconformity Prospects
Series of East-West faults with unconformity in sediments. Highly prospective for uranium deposition.

7. Target
Anomalous gold and base metals follow up work required

--

EPM 25608

1. Shear 1 prospect
Highly anomalous in gold, silver and base metals

2. D2 prospects
CRA discoveries, highly anomalous in gold, silver & base metals

3.  Shatter prospect
Intersection of major faults with concurrent magnetic and gravity anomalies.

4. Shear 2 prospect
Highly anomalous in gold, silver and base metals

5. Dagworth prospects
CRA discoveries. Highly anomalous in gold, silver and base metals

6.  Historic Yataga Copper Mines
Highly anomalous in copper, lead, zinc and precious metals

7. Historic Greisen Hill Lead Mine
Highly anomalous in lead, copper, zinc and precious metals

EPM 25869

Exciting developments at our recently approved acquisition EPM 25869- Dagworth. Moore Geophysics have identified an enormous geophysical target T3 that stretches for over 15 km in strike. There are several target areas along this strike length that we have identified as geological and geochemical targets based on our extensive historical geochemical database.

These targets and many more will be field assessed later this year. Moore Geophysics have identified 3 other large geophysical targets (T4 through T6) on this tenement, which is proving to be an amazing acquisition. Stay tuned for more developments soon.

<See Figure 2: EPM25608_Mag<