PETROMIN EXPLORATION ASSETS 

Tenements Summary/ Petromin Exploration Program - Saki Prospect


PETROMIN REGIONAL MINERAL EXPLORATION LICENCES

With the acquisition of the Tolukuma Gold Mine, Petromin also acquired eleven tenement exploration licences (EL's) within the vicinity of the Mine. They are located in the Central, Oro and Morobe provinces. The tenements span a total area of 5064 km2. Ten ELs are current and one EL (1284) is up for renewal. All tenements are 100 percent owned by Tolukuma Gold Mine (TGM) except for EL1271 which is a 50/50 joint venture with Papuan Precious Metals Limited.

A number of priority target prospects were identified within the eleven exploration licenses over the last consecutive field work programmes. Key areas include Saki, Soju, Seriseri, Etasi, Genga, Badim, Hula, Kone-Belavista, Aikora, Ioma and Ipi River prospects. Mineralisation styles in the tenements include porphyry, skarn and low to high sulphidation epithermal systems.

Geochemical anomalies within the identified prospects have indicated some of these prospects to be highly prospective. Mineralisation is closely associated with volcanics, significantly structurally controlled and intermittent occurrences of disseminated porphyry mineralisation in places.

Regional geology comprised Owen Stanley Metamorphics (Kagi & Emo Metamorphics), Volcanics ( Mt. Davidson , Aibala & Lokanu), Sediments (Mafulu Beds, Auga Beds & Kemp Welch Beds) and a major Ophiolite Sequence known as the Papuan Ultramafic Belt.

TENEMENT MAP

TENEMENTS SUMMARY

EL 580

EL 580 is loosely bounded by 147º07´ E and 147º12´ E and 8º29´ S and 8º43´ S predominantly on the Wasa (8380) 1: 100 000 sheets. It is approximately 83 - 110 km North of Port Moresby

Past and recent investigations comprise stream sediment BLEGs, pan con, rock chips and soils. A number of prospects were delineated during the work program include Seriseri, Saki, Soju). Saki target was tested with resource drilling that indicated an inferred resource of 35 000 oz of contained gold. Previous drilling at Saki failed to test the precious metal interval lying some 150 to 300 m below surface. Recommended for infill and deep hole drilling to test the potentially economic section (150 - 300 m below) . Landsat and geophysical imagery are considered key tools for the generation of further targets. Saki given 1st priority. Exploration current.

Deposit Type: Low Sulphidation Epithermal system

Sindo and Seriseri prospects are recommended for detailed 1:1000 geological and alteration mapping, trenching, ridge/spur soil sampling. Recent work in upper reaches of Hoyu creek has returned 346 g/t Au from a rock chip.

EL 683

EL 683 is loosely bounded by 147º12´ E and 147º16´ E and 8º29´ S and 8º38´ S predominantly on the Wasa (8380) 1: 100 000 sheets. It is approximately 76 - 110 km North of Port Moresby

Historical work by past companies and TGM include reconnaissance mapping, creek traverses, ridge/spur soil and rock sampling mostly in Samanalan prospect. Recent work and results from Hoyu area has indicated this area to be prospective and warrants further detailed geological, structural and alteration mapping and sampling. The prospect lies adjacent to Saki Prospect on the eastern edge and within the Ijav structural corridor.

It is recommended for further work at the Samanalan prospect to be conducted to ensure that drilling targets are optimized.

Deposit Type: High Sulphidation Epithermal System

EL 894

EL 894 is loosely bounded by 147º01´ E and 147º14´ E and 8º30´ S and 8º46´ S predominantly on the Wasa (8380) 1: 100 000 sheets. It is approximately 76 - 105 km North of Port Moresby .

Historical details of investigations from past and present (TGM) within this area comprise stream sediment blegs, pan con, creek traverse and reconnaissance geological mapping. Recent (2007) work by TGM through its field program has return rock assay values ranging between 0.1 to 0.4 g/t Au. Four samples returned >10 ppm (10 g/t) Au.

Future work program is recommended for follow up in the drainages towards Mt. Tafa to establish the extent of weathering and alteration. Complete mapping the upper reaches of Emba and Yald creeks targeting lihological changes. Infill ridge/spur sampling is also recommended .

Other key prospects include Etasi (porphyry Cu_Au), Genga (skarn), Badim (Cu_Au) and Hula (Au) need further investigation (geological mapping, rock chips, ridge/spur soil samping) to delineate the size and extent of the mineralization.

Deposit Type: Porphyry, Skarn and Epithermal styles of Mineralisation.

EL 1264

EL 1264 is loosely bounded by 146º59´ E and 147º14´ E and 8º23´ S and 8º39´ S predominantly on the Wasa (8380) 1: 100 000 sheets. It is approximately 90 - 120 km North of Port Moresby

Past work by various companies within the tenement defined three prospects including Minaru, Kosipe Mag Low and Kailape. Field work programmes comprised stream sed, pan con, soil/rock sampling. Three grab rock chips from the area have returned assay values of 0.01 g/t to 0.28g/t Au. Alteration and mineralization characteristics (quartz-adularia) plus chalcopyrite-pyrrhotite suggest porphyry related quartz sulphide-gold-copper vein system at depth associated with high sulphidation mineralization in the three prospects.

Principal areas recommended for further exploration are:

  • The Kosipe South BLEG Au must be checked by re-sampling the anomalous catchment in detail. Ridge and spur soil sampling must be done so that a true nature of the target can be delineated. Additional in fill soil sampling is required to adequately define the target.
  • The Kosipe North BLEG Au anomaly should be stream sediment sampled in detail and the target conformed. Ostensibly the target stands up, a similar programme to that at Kosipe South should be undertaken.

TGM has not conducted any field work in the last two years (2006-2007). This area needs some attention and significant amount of work is recommended for further reconnaissance and detail work programs.

Deposit Type: Porphyry & high sulpidation Epithermal System

EL 1271

EL 1271 is loosely bounded by 147º00´ E and 147º14´ E and 7º45´ S and 8º15´ S predominantly on the Garaina (8382) and Albert Edward (8381) 1: 100 000 sheets. It is approximately 143 - 190 km North to northeast of Port Moresby .

Historical work details from past and present (TGM) companies within this area comprise stream sediment blegs, pan con, creek traverse and reconnaissance geological mapping. Recent field program in the area has returned an assay value of 3.44 g/t Au and 0.61 g/t Ag and 320 ppm Cu.

The EL has a long standing history of alluvial gold mining, however, extended field work in the future should be aimed at locating source rocks for the abundant alluvial gold which has been shed.

Recommended for follow up on the 3.4 g/t Au by doing detailed geological mapping and sampling in areas adjacent and surrounding this sample location. Landsat and geophysical imagery are considered key tools for the generation of  targets

Deposit Type: Alluvial & Porphyry System

EX - EL 1284 / EL 1661

EX - EL 1284, now EL 1661 is loosely bounded by 146º59´ E and 147º14´ E and 8º23´ S and 8º39´ S predominantly on the Wasa (8380) 1: 100 000 sheets. It is approximately 100 - 116 km North of Port Moresby

Historical work results by previous companies and recent work by TGM involved stream sed, pan con, soil/rock sampling and reconnaissance mapping. Different styles of mineralization were defined; Kone – Sheeted dykes (Cu-Py), Minaru - massive sulphide, Gaiva Qtz-Ag-Pb-Zn and Belavista epithermal style mineralization.

Recent work (2006) included ridge/spur soil sampling and reconnaissance creek mapping at Kagam and Barega creeks. Follow up is recommended for creek traverse, mapping, trench and rock chip sampling at Kagam and Barega creeks.

Gaiva Prospect – recommended for detail geological and alteration mapping and to prepare for trenching if necessary.

Belavista Prospect – recommended to conducting stream sediment geochemistry and follow up sampling in the Kagam area.

Kaelape NW Anomaly – sampling to be done to confirm the source of gold.

Kone Prospect – Further reconnaissance mapping and sampling is required to fully assess the potential and optimize new drilling targets.

Mt. Olom Prospect – Soil sampling maybe required to assist in defining a drillable target.

Deposit Type: Porphyry & high sulpidation Epithermal System

EL 1297

EL 1297 is loosely bounded by 147º34´ E and 147º46´ E and 8º11´ S and 8º22´ S predominantly on the Ioma (8481) 1: 100 000 sheets. It is approximately 139 - 153 km North east of Port Moresby

Ioma has been known for alluvial mining activities for centuries. Many companies have explored the area basically doing reconnaissance field work including stream sed, pan con, rock chips and creek mapping. Recent TGM investigation in 2006 particularly in the Sangana, Oi and Milton creeks has indicated the area to be anomalous. The highest Au value was 6 g/t Au.

Past reconnaissance exploration work remains to be adequately conducted, to fully define all potential anomalies. Future work should focus on detailed geological mapping, sampling and trenching in anomalous zones to ensure that drill targets are optimized.

Deposit Type: Alluvial & Epithermal Quartz Vein System & Porphyry?

EL 1327

EL 1327 is loosely bounded by 147º29´ E and 147º40´ E and 8º14´ S and 8º24´ S predominantly on the Ioma (8481) and Kokoda (8480) 1: 100 000 sheets. It is approximately 130 - 144 km North east of Port Moresby .

Aikora and Mt Dye prospects have a long standing alluvial panning history. Consecutive past and present field programs comprised stream sed, pan con, blegs, creek traverse, rock sampling and reconnaissance field mapping. Recent work by TGM (2007) in the headwaters of Aikora indicated this area to be of low priority area. Highest assay value was 0.86 g/t Au and 13 145 ppm Cu.

There is abundant occurrence of disseminated pannable visible Au in the entire Aikora district. Therefore, follow up work is required in areas northward and towards Mt Dye area to delineate the buried ore body or veins that shed the alluvial Au.

This area is recommended for geophysical survey to generate probable ore deposits.

Deposit Type: Alluvial

EL 1352

EL 1352 is loosely bounded by 146º36´ E and 146º53´ E and 7º59´ S and 8º18´ S predominantly on the Yule (8281) 1: 100 000 sheets. It is approximately 135 - 170 km North of Port Moresby

Three prospects were identified during various field programs in the past ( Ipi River , Bulls Eye, Variza Prospects). Grass root reconnaissance work was conducted in all the prospects and couple of exploration drilling was done.

Recent TGM work (2007) in Ipi has indicated the area to be high priority zone due to 5 rock sample assays giving 4% Cu and highest was 10% Cu. Highest Au value, 3.75 g/t Au was from a qtz-ser-clay-sulp vein.

Ipi is recommended for re-sampling and followed by trenching to ensure that drilling targets are optimised. This is one of the most advance prospects and urgently requires attention. Priority #2.

Follow up program is recommended for more sampling, trenching and mapping in these anomalous zones. Maximize sampling density to establish the extent of mineralization.

Deposit Type:  Shallow Epithermal Au to porphyry Cu_Au deposits

EL 1366

EL 1366 is loosely bounded by 147º34´ E and 147º49´ E and 8º00´ S and 8º26´ S predominantly on the Ioma (8481) 1: 100 000 sheets. It is approximately 133 - 170 km North east of Port Moresby

Historical work results by previous companies and recent work by TGM involved stream sed, pan con, soil/rock sampling and reconnaissance mapping. Three prospective areas were identified. Tavi 1, with 23.6 ppm Au and Tavi 2 with 15.1 ppm Au from pan con. These anomalies were defined around the inferred tonalite intrusive stock. Recent work by TGM (2007) comprised creek mapping, out crop & stream sed sampling. Only one RF sample returned Au value >1 g/t (1.14 g/t Au). Field observation and assay results indicate a low patchy anomalous zone within the intrusive tonalite stock.

Future work should focus on detail mapping within tonalite stock and adjacent areas in the drainage area. Increase stream sed, pan con, rock chip sampling density in the upper reaches and creeks.

EL 1379

EL 1366 is loosely bounded by 147º34´ E and 147º49´ E and 8º00´ S and 8º26´ S predominantly on the Wasa (8380) and Port Moresby (8379) 1: 100 000 sheets. It is approximately 53 - 110 km north to northeast of Port Moresby

Not much work was conducted by TGM in the last 2 years. Past work by other companies reported nil identified prospects. Work comprised stream sed blegs, pan con were conducted. The best stream sed anomaly was the BLEG value of 43ppb Au. The entire district requires more grassroot type of work

The tenement needs to be comprehensively stream sampled as the next phase of exploration. Some follow up on the BLEG anomalies obtained in previous work programs.