Introduction
The Baishishan Gold Prospect is located within the company’s Liaodong tenement. It lies in Teng County in Eastern Guangxi. The prospect is in hilly terrain with elevation differences of approximately 50m. In the immediate work area, there is little or no agricultural activity. The exact location of Baishishan is at 23°57’43”N, 110°47’19”E. A four-wheel drive track provides vehicular access to the portal of the underground mine.
Baishishan was located by GTX geologists in 2007 during an inspection of anomalous stream sediment sample results. Adits have been constructed and active mining is being done by local farmers at Baishushan Prospect within the Liaodong Licence. The miners are targeting high grade gold and a sample of visible gold has been observed at the mine. Prior to the Company’s exploration personnel visiting the mine, no exploration work had been done here.
Exploration
During the reconnaissance visit, several pick samples were taken from the walls of the underground workings. These samples returned low level gold values. Subsequent detailed and systematic underground channel sampling returned positive results including 35 samples returning assays greater than 0.5g/t Au. Seven (7) samples are in excess of 9.00g/t Au and include 11.30g/t, 11.80g/t, 20.40g/t, 31.00g/t and 18.10g/t Au. Some sections of the underground workings show evidence that the mineralization has no preferred orientation but is closely associated with the breccia.
Surface mapping and sampling located a broad ridge of silicified sediment and breccia. From surface exposures, it is estimated that the mineralised breccia and associated silicification is more than 50m wide. From the underground workings, the mineralisation is seen to have a width exceeding 25m. The underground workings extend for a strike distance of 125m, although the surface mapping has identified the breccia and silicification well in excess of 200m.
In early June 2008, drill holes BDDH001, BDDH002, BDDH003 and BDDH004 have already been completed. Assay results from this drilling indicates broad, low-grade gold mineralisation over an extensive area. Drilling has been diverted to other prospects whilst the GTM geologists analyse the results of this drilling.
Elsewhere on the Liaodong Licence, soil sampling and rock chip samples have defined an anomalous gold occurrence at the Yinxing Prospect. Planned exploration work includes detailed geological mapping, more systematic rock sampling and underground channel sampling.
