Teutonic Project

The Teutonic Project consists of one granted Exploration Licence, numbered E37/1037, located in the Eastern Goldfields of Western Australia, details of which are set out in the table below. The Teutonic Project is prospective for gold and base metals.

The Company has entered into a Farm In and Joint Venture Agreement with the registered holder of the Teutonic Project, pursuant to which it may earn an initial 70% interest in the tenement on meeting certain conditions.

Teutonic Project Tenement Details:

Tenement Size (Ha) Grant Date Expiry Date
E37/1037 1,613 23/07/2010 22/07/2015

The gold endowment of the Eastern Goldfields is extensive, with Australia’s five largest known gold deposits historically producing 13.5Mozs of gold from the region. An anomalous gold trend within the Teutonic Project area is yet to be systematically tested below the weathered zone and the base metal potential of the Project has also yet to be tested using modern exploration techniques, despite the Project being located in an emerging base metals province. Once existing data has been consolidated into a useable database, the Company believes it may be possible to fast track a RAB drill program over new conceptual targets.

Since listing, the Company identified that a detailed multi-client magnetic survey had been flown over the region and that approximately 65% of the Teutonic Project had been covered by the survey. The survey data has now been processed by Resource Potentials Pty Ltd to produce a suite of images suitable for detailed interpretation of geology and structures thought to control the occurrence of both gold and base metal mineralisation throughout the region. A preliminary review of the data indicates that there are a number of discrete magnetic anomalies in the east of the project area, interpreted to be coincident with stratigraphy, which hosts the VMS deposits of Jaguar and Bentley located 30km to the north of the Teutonic Project. No previous exploration has been conducted over this area and the Company believes the eastern portion of the tenement is prospective for VMS mineralisation

A recent electromagnetic (EM) survey conducted by Metallum has delineated the 350m long by 250m deep Mustang electromagnetic (EM) conductor delineated within prospective VMS corridor coincident with Cu and Zn anomalism. The Mustang conductor is thought to be prospective for massive sulphide copper and zinc minerlisations and has many similarities to the nearby Teutonic Bore, Bentley and Jaguar VMS deposits which occur within the same VMS corridor as Mustang.