Australia United Mining Limited (AYM)

Forsayth FNQ

The Forsayth Project is Altius Mining Limited's flagship and wholly owned project located in Far North Queensland. The gold treatment plant is expected to be commissioned in mid-2012, and includes crushing, gravity and flotation circuits. Test mining and processing has commenced.

Key Statistics

Licence No:

• ML3417, ML3418, EPM14498

Location:

• Forsayth, FNQ (400km south-west of Cairns, 60km north-west of the Kidston Gold Mine)

Project Phase:

• Production (ML3417 Ropewalk, ML3418 Flying Cow)
• Feasibility (ML3417 New Gossan, EPM14498 Queenslander, EPM14498 Lady Franklin, EPM14498 Lightning & Lightning Flash)

Size:

• 73 Sq Km

Ownership:

• 100%

Product:

• Gold

Regional Geology:

• EPM 14498 is approximately 80 km2 and contains over 100 old workings and mines. The area appears to be part of a much larger 'duplex' system, strikingly similar geologically to many of the world's significant gold deposits.
• The Kidston Magnetic Linearment, locally known as the Big Reef Fault (BRF) passes through Altius' tenements. The pull apart enchelon faults are ideal sites for the deposition of mineral rich fluids. Gold mineralization occurs within quartz veins typically hosted by narrow 2 to 5m wide faul or shear zones structures, some of which can be traced for many kilometres. The west-northwest trending BRF zone extends over 20 km.

Location Rationale:

• Tenements cover part of the historic Etheridge Goldfield where numerous, structurally-controlled, gold-bearing quartz veins were selectively mined in the past.
• Refer to the FNQ Regional Geology Map showing the relationship between Altius' assets and their location, along strike of the multi-million oz Kidston Gold Mine

Targets:

• Low tonnage high-grade narrow quartz veins and larger disseminated lower-grade structures

Proposed Mining Method:

• Open cut and underground

Status & Company Goals:

• Mining infrastructure and environmental permits in place.
• Altius completed RC percussion drilling programme at its Ropewalk gold deposit in ML 3417, near Forsayth. Drilled 16 holes for a total of approximately 700 metres. Full results of the programme are in Company Announcements on the ASX web site or click here.
• Operations to be expanded 2012.

Huntingfield

Key Statistics

Licence No:

• 
  EL7046

Location:

• Huntingfield, NSW (directly east of Radium Hill and Honeymoon Uranium projects in SA, south of Broken Hill)

Project Phase:

• Development

Size:

• 659 Sq Km

Ownership:

• 100%

Product:

• Iron pisolites, porphyry copper-gold

Regional Geology:

• Extensive Fe (pisolite) channels have been identfied.
• The paleodrainage is identified from Altius recently flown high resolution aeromag/radiometric surveys. Interpretation by geophysicists has indicated potential for an open pittable resource that can be beneficiated on site to 55% Fe.

Location Rationale:

• Large Area: The Huntingfield tenement of 659 Sq Km is on the edge of the Murray Basin and south of Broken Hill, one of the world's largest and most profitable mining fields that spawned BHP Billiton.
• Proximity to Prime Mining Locations: It is located directly east of Radium Hill and Honeymoon Uranium projects in South Australia, and was selected after an extensive review of geophysics to find suitable sites for Group1 minerals.
• Broad Range of Mineralisation Styles: The proximity to Broken Hill deposits, iron ore and base metal discoveries in western NSW, makes this a primary target. The complexity of the basement based on the magnetic data allows for a wide range of mineral styles.
• Significant Mix of Anomalies: The tenement was originally taken up because of a large radiometric anomaly, and the proximity to major South Australian mines.

Targets:

• Determine iron resources in identified pisolite channel deposits
• Develop areas with presence of nickel sulphides, iron pisolites and porphry copper-gold

Status & Company Goals:

• Altius has commissioned high resolution aeromagnetic/radiometric surveys to define extent of iron resources and radiometric anomaly.
• Complete beneficiation and mining feasibility studies whilst concurrently assessing demand and potential supply scenarios.

Sofala

Key Statistics

Licence No:

• 
  EL7423

Location:

• Sofala, NSW (30km north of Bathurst)

Project Phase:

• Exploration

Size:

• 155 Sq Km

Ownership:

• 100%

Product:

• Gold

Regional Geology/Location Rationale:

• Wattle Flat Historical Gold Mining Area:526 kg total of recorded hard rock gold production of which the principal contributors were: Surface Hill (Big Oakey Mining Company) – 208kg; the Queenslander – 115kg; and Solitary Reef – 118kg. In addition, gold has been won from extensive alluvial workings in the Turon River and in the creeks draining the hard rock mineralised areas.
• Possible Cadia-type system:Magnetic data over the Wattle Flat area is similar to Cadia-Ridgeway and Northparkes.
• Spring Gully with large gold anomalySpring Gully was discovered by RGC Exploration using regional drainage geochemistry and following this up with a soil survey that defined a large gold anomaly >0.05g/t Au. The area was subsequently tested by 6 diamond holes and 63 RC holes which outlined a body of mineralisation estimated to contain about 3.55 Mt @ 1.01g/t gold. Altius upgraded this data to 4.6 Mt @ 1.0g/t Au, cut off grade 0.5g/t Au.
• Queenslander Gold Estimates:At the Queenslander, there is an estimated 0.7 to 1.0 Mt @4.3 to 5.9g/t Au. In the mine area, a thick mineralised zone in the diorite returned assays of between 3.4 and 5.9 g/t Au. It has been intersected down dip from the mine in QDD002 and further down to a depth of 130m below surface in QXD001. Northwards, the mineralised horizon is found in QDD003 as a 1.34m intersection (1.2 m. true) returning 52.2g/t Au. The current interpretation suggests that this is close to the northerly limit of the mineralised dyke.
• High Prospect Area:Whalans Hill, Caledonian and Pennyweight Ridge typically revealed mineralised zones between 5m and 30m (true) width returning 0.2-0.7g/t Au containing veins of 1m width and occasionally 2m, carrying 1 and 10g/t Au.

Targets:

• Wattle Flat magnetic anomaly, possible Cadia-Ridgeway type system feeding high-grade gold mineralisation near surface.
• Spring Gully large low grade deposit 1.0-4.6 Mt @ 1-1.75g/t Au
• The Queenslander deposit 0.7 to 1 Mt @4.3-4.9g/t Au

Status & Company Goals:

• Determine the extent of the monzonites present and define the intrusive/potential porphyry mineralisation previously described.
• Planned sampling, including drilling, to start in 2012.
• Applications for Mining Leases to be lodged with the necessary environmental approvals to be sought by end 2012.