Project Overview

AN INTRODUCTION

The Davyhurst Project is located approximately 120 km north west of Kalgoorlie within the Eastern Goldfields of Western Australia.

This large scale project comprises 112 mineral tenements totalling approximately 1,336 square kilometres which provides almost continuous coverage of approximately 200 strike kilometres of greenstone sequences prospective for gold as well as nickel sulphide and base metal mineralisation.

The Company is focused on unlocking significant value from our strategic and prospective landholding. To achieve this, we are targeting resource development activities at five advanced projects: Riverina, Waihi, Siberia, Callion and Golden Eagle. This work aims to deliver a robust Definitive Feasibility Study to underpin future development of the Davyhurst Gold Project. The project has a 1.2 Mtpa conventional CIP processing facility with significant associated infrastructure, including an extensive road network, 160 person camp, administration & workshops buildings and a large water bore field.

The tenement package is accessed from Kalgoorlie by a series of well formed, unsealed shire and haulage roads. Airstrips are located at Davyhurst (Callion) and Mt Ida (Bottle Creek). We are in the process of approvals for an additional airstrip only 2km from the Davyhurst camp.

PROJECT HISTORY

Gold was discovered in the district in the 1890s by prospectors following greenstone belts northward from Coolgardie. Within the project area, mining towns were established at Callion, Davyhurst, Siberia, Ularring, Mulline, Copperfield and Mt Ida. Between 1890 and 1950, numerous small to medium scale underground mining operations were established within the project area with cumulative production of approximately 600,000 ounces of gold.

Modern exploration and mining in the district commenced in the mid-1980s. Since that time, numerous companies have conducted exploration or had production operations in a fragmented tenure environment covered by the current project area.

Consolidation of the disparate tenement holding was undertaken by OBM’s predecessor Monarch Gold Mining Ltd between 2002 and 2006. There has been no large-scale, coherent exploration undertaken on the project since this strategic tenement consolidation. The company has a unique opportunity to define the critical mass of resource and reserves across a large and under-explored tenure needed to create a long-term sustainable mining operation.

REGIONAL GEOLOGY

The Davyhurst – Mt Ida project area is located on a western branch of the Norseman Wiluna Greenstone Belt. The project straddles the boundary between the Kalgoorlie Terrane of the Eastern Goldfields Province and the Barlee Domain of the Southern Cross Province, which is defined by the crustal scale Ida Lineament. The project also includes portions of the Zuleika Shear which separates the Coolgardie and Ora Banda Domains within the Kalgoorlie Terrane.

The Barlee Domain, to the west of the Ida Lineament, comprises a sequence of banded iron formation (BIF), shale, chert, and basalt, all poorly outcropping against basement granites. These lower units are overlain by a thick monotonous sequence of tholeiitic basalt to the east to the Ida Lineament.

The Ida Lineament is a poorly defined structure but is commonly interpreted to be along the western contact of the western most ultramafic unit as defined by aeromagnetics. East of the Ida Lineament, greenstones of the Coolgardie and Ora Banda Domains consist of sedimentary and felsic volcanoclastic rocks to the west, and mafic to ultramafic volcanic and felsic rocks to the east. The project is generally bounded by basement granite and gneiss terrane. Internal to the greenstone belt there are several granite intrusions of various ages. The most prominent of these granites is the Ularring Granite, located midway between the Davyhurst and Riverina area.

MINERAL RESOURCES

GOLD
Gold mineralisation is the principal target within the project and occurs across all geological domains within the project.

Bedrock gold mineralisation within the project is structurally controlled and is generally associated with mafic and high-Mg volcanic and intrusive rocks.

Two principal deposit types are present:
– Brittle fracture quartz veining with associated biotite alteration and sulphide mineralisation.
– Lode style silica-biotite-pyrite altered shear zones with minor quartz veining.

Recent discovery of gold mineralisation adjacent to the mafic granite contact on the north west corner of the Ularring Granite at the Giles Deposit highlights the potential of further discoveries to be made on the margins of, or within granite bodies within the project area.

The project has a mineral resource inventory of 23.6Mt @ 2.6g/t for 2.0Moz as tabled below:

1. All Mineral Resources listed above with the exception of the Riverina, Waihi, Callion, Missouri, Sand King and Golden Eagle Mineral Resources were prepared and first disclosed under the JORC Code 2004 (refer to ASX release “Swan Gold Mining Limited Prospectus” released to the market on 13 February 2013). They have not been updated since to comply with JORC Code 2012 on the basis that the information has not materially changed since it was last reported
2. The Riverina, Waihi, Callion, Missouri and Sand King Mineral Resources have been updated and comply with all aspects of the JORC Code 2012. These Mineral Resource Estimate are reported within a A$2,400/oz pit shell above 0.5g/t. UG above 2.0g/t below $A2,400/oz pit shell
3. The values in the above table have been rounded