New Release: Loyalty Prospectus

Mt Davis Project


The company’s Mt Davis Project is comprised of five granted prospecting licenses (PL’s 37/8634, 37/8635, 37/8636, 37/8637 and 37/8638) and two contiguous prospecting license applications PLA’s 37/9349 and 37/9350).  The area covered by the tenure is 1216Ha and the project is located approximately 20km north of Leonora adjacent to the Goldfields Highway.

Geological Setting

The Mt Davis Project lies adjacent to a highly prospective Kalgoorlie-Kurnalpi terrane boundary of the Yilgarn Craton.  A major shear zone known as the Mt George Shear Zone separates greenstone lithologies in the eastern part of the tenements.  Late stage proterozoic dykes cut east-west across the regional north-westerly striking and easterly dipping sequences.

Two giant (+4M oz) gold deposits situated respectively 5km to the northwest (King of the Hills) and 25km to the south-southeast (Sons of Gwalia) which are within the regional structures that pass through the Mt Davis Project tenements.

On the west side of the Mount George Shear Zone rocks of the Mount Clifford Greenstone Belt are mostly mafic sequences including basalts and ultramafic rocks together with siliciclastic rocks, felsic volcanics, dolerite and conglomerate.  Rocks of the Malcolm Greenstones east of the Mount George Shear Zone comprise predominantly felsic volcanic rocks, basalt, shale, and dolerite sills with conglomerate in the south.

In the western part of the lease holding, lithologies are transected by a second north-south shear structure (the Clifford Fault).  Historic workings lie on this sheared contact north and south of the leases and local prospecting has produced gold nuggets along the trend.  With only limited exploration to date the 5km long stretch of the Clifford Fault on Ozz Resources holding is considered to have significant prospectivity.

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The Mt George Shear is located towards the east of the leasehold area.  This is characterised by quartz-sulphide veining associated brittle shearing that forms the Trig deposit.  RC drilling by Sons of Gwalia in the 1990’s identified the mineralisation as forming south plunging lenses of gold in the shear.  A non-JORC compliant resource estimate was completed for Trig at that time. Only the area immediately surrounding the Trig deposit was drill tested and with greater than 4km of strike length to the south contained in the tenements, there is considerable scope to increase the resource base.

Previous Exploration

Several phases of exploration have been completed since the 1980’s.  Most were focussed on finding large stand alone or bodies and wide spaced spoil sampling and RAB drilling were completed following mapping and geophysical surveys.

RC drilling at the Trig deposit in the 1990’s by Sons of Gwalia comprised 28 holes with significant intercepts greater than 1.0g/t Au being obtained from 18 of the 28 RC holes, e.g.;  10m at 3.37g/t, 6m at 2.91g/t and 9m at 1.3g/t.  A non-JORC compliant inferred resource was estimated of 140kt at 2.3g/t (also reported as 200kt at 1.8g/t using a lower cut-off grade).  Following this, the only significant exploration was by Jupiter Mines (2006-2010) which drilled 29 RAB holes at four localised remote sensing defined alteration targets with no significant results. No further work was recorded at the Trig prospect or along strike to the south.

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Exploration Programme

With two significant mineralised faults covered by the tenements the Company’s exploration strategy for the Mount Davis Project has two main objectives.

a) Firstly, an early drilling campaign to convert the resource at Mt Davis to JORC compliancy and to test the Mt George shear aimed at defining repetitions of the mineralisation to the south. Concurrently, initial mining studies will commence to enable a feasibility study to be completed so a mining reserve can be calculated.

b) Secondly, the Clifford Fault and remaining areas of the tenements need to be evaluated and subsequently drill tested as warranted. Following the assessment of existing data, mapping, geophysical and geochemical programmes will be implemented as necessary to identify targets for drill testing.