CURRENT PROJECTS - Xplor Limited
On 12th June 2009 MPJ announced its proposed acquisition of Xplor Limited (Xplor). Xplor is an unlisted public company holding a suite of prospective exploration and mining tenements, in key locations within Victoria and Western Australia. Xplor’s lease portfolio consists of three 100% owned projects; the Egerton Gold Project in Western Australia, the Mt Tarrengower Project at Maldon, in central Victoria and Golden Mount at Bonnie Doon, in eastern Victoria.
Egerton Gold Project (M52/343, M52/567 & E52/1402), Gascoyne – Western Australia
The Egerton Gold Project is located approximately 235 km northwest of Meekatharra, in the Gascoyne Region of Western Australia and comprises a 55 km2 tenement block, covering the historic Egerton Goldfield. The project tenements consist of two mining licences M52/343 (Hibernian) and M52/567 (Gaffney’s Find) which are enclosed within a single exploration licence E52/1402.
Figure 1: Egerton Project Location Plan
The tenements have a history of gold production which is estimated to be 8,500 ounces predominantly from high grade, narrow quartz vein mineralisation within sheared and faulted metasediments and metavolcanics. In August 2005, ASX listed NGM Resources Limited (ASX : NGM) (‘NGM’) announced JORC reported measured, indicated and inferred classified resources at the Hibernian Prospect (M52/343) to a depth of 70 metres across a 1.5km strike of:
| Classification | Tonnes | Grade (g/t) Au | Contained ounces of Gold |
| Measured | 32,100 | 9.5 | 9,801 |
| Indicated | 46,400 | 5.3 | 7,841 |
| Inferred | 37,800 | 5.1 | 6,169 |
| Total | 116,400 | 6.4 | 23,811 |
This estimate was completed by consultants Finore Pty Ltd in July 2005 on behalf of NGM using a cut-off grade of 2 g/t Au. Mineralisation lies within an east-west mineralised shear system which extends for some 11 kilometres and is covered by E52/1402. Further details are set out in the NGM announcement dated 9 August 2005 which can be accessed from the ASX website www.asx.com.au.
Xplor acquired the Egerton Project from NGM in August 2007.
On 22nd October 2009, the Company announced it entered into an agreement with Exterra Resources Pty Ltd (“Exterra”) in respect to the Egerton Project. Under the agreement Exterra will hold a 6 month option over the Egerton Project on the following basis:
- Exterra will pay MPJ a $20,000 non-refundable option fee for an exclusive 6 month option period. Exterra may at its election extend this period for a further 6 months by paying MPJ an additional $20,000 cash and allotting to MPJ 500,000 options in Exterra exercisable at 20 cents each on or before 30 September 2013;
- Exterra will undertake to use its best endeavours to achieve listing on the Australian Securities Exchange (ASX) prior to the end of the option period. Within 7 days of listing on ASX Exterra will issue to MPJ 2,500,000 fully paid ordinary shares and 1,250,000 options exercisable at 20 cents each on or before 30 September 2013;
- Should Exterra produce gold from the Egerton tenements Exterra will pay MPJ a 2% net smelter royalty on all gold produced to a maximum amount of $500,000.
Mt Tarrengower Project (EL 4533), Maldon – Central Victoria
The Mt Tarrengower Project, EL4533, at Maldon in central Victoria, comprises relatively untested historic workings, estimated to have historically produced over 400,000 ounces of gold. The Maldon goldfield is noted to be the fourth largest gold producing area in Victoria after Bendigo, Ballarat and Stawell, with over 1.75Moz of recorded quartz reef production occurring between 1853 and 1926.
The Mt Tarrengower Project (EL4533) has the potential to host shallow high grade gold mineralisation associated with both vertical and flat lying structures. The Maldon project area and particularly the Lisle-Braithwaite zone remains under explored. The potential exists for intersecting mineralisation in both near surface, flat east dipping reefs from the Bells and Lisle reefs, as well as deeper repetitions adjacent to the interpreted vertical feeder reefs.
Within the Lisle-Braithwaite zone reported gold production was 60,000 ounces to 60 vertical metres below surface. Below this depth very little development occurred. MPJ intends to investigate whether gold mineralisation exists below the existing historical infrastructure, as it was Xplor’s belief that the mineralised setting is analogous to the mineralised structures found within the nearby North British / Oswald’s mine.
The Company is currently developing an initial exploration plan to test both the vertical and flat lying structures in first half of 2010.
Figure 1: Maldon Geology Plan with outline of main Reef Structures.
Figure 2: Proposed Diamond Holes testing the Lisles Reef and projected repetition at depth
Figure 3: Long Section of North British & Oswalds Mine with projected Lisle Reef model.
Golden Mount (MIN4683), Bonnie Doon – Eastern Victoria
The Golden Mount project is located within MIN4683 which is located approximately 45 km north-west of Mansfield, at the northern end of the Walhalla Synclinorium.
Golden Mount is a sediment-hosted gold project, with a hard rock and alluvial mining history of approximately 140,000 oz of gold production from operations that concluded in the 1920’s. Further exploration over Golden Mount occurred during the 1950’s and 1980’s. The Company has examined these results and is encouraged to make further investigations.
Xplor entered into a joint venture agreement with Flinders Resources Pty Ltd (Flinders) in September 2007, whereby Flinders could earn up to 80% of the project. Flinders was consequently acquired by Canadian listed Tinka Resources (Tinka) (TSXv – TK). In March 2009, Tinka completed two drill holes totalling 417 metres, to confirm historical data and better understand potential styles of mineralisation that may exist within the lease. Assay results from this program were released on the Toronto Stock Exchange.
In May 2009, Xplor received notice from Tinka they were withdrawing from the joint venture agreement to focus on other projects. It is MPJ’s intention to further test data obtained from historical records to examine the prospect for potential mineralisation.