Gold Mining Lease
On 16th October 2023 Emperor Energy advised that it has executed an Asset Sale and Purchase Agreement to acquire 3 Mining Leases with a total area of 128 Hectares located between Townsville and Charters Towers City in North Queensland, Australia.
The 3 Mining Leases are located 60km Southeast of Townsville, Northeast Queensland and are accessible from Townsville by approximately 70km of sealed road and then approximately 40km of well-maintained gravel road.
Completion of Gold Mining Lease acquisition occured in August 2024.
Historical Reports
The most comprehensive historical report available relating to the 3 Mining Leases was compiled in 1997 by Mr R C W Pyper, BSc., FAusIMM, Consulting Geologist (Pyper). At that point in time Pyper had 34 Years experience as a Geologist and had been in Consulting Practise for 14 Years. Pyper states that his report “has been prepared in accordance with the code and guidelines for the Assessment and Valuation of Mineral Assets and Mineral Securities for Independent Expert Reports (The Valmin Code) as adopted by AusIMM 17th February 1995”.
Extracts from Pyper’s report state as follows:
“The Great Caesar Prospect is a gold bearing structure which was mined for gold last century and again in the 1930s. It comprises 3 Mining Leases. These cover portion of a 10 – 15 km gold bearing structure along which some open cut mining has already taken place at Far Fanning.”
“The Mines at Great Caesar were first worked for Gold late last Century (1890s) but records are scarce. Some 52 tonnes (t) of ore are recorded as being mined in the 1930s at an average grade of 16 grams per tonne gold (g/t Au) and 40 tonnes of tailings were treated, apparently at a grade of 27 g/t Au.”
“A number of companies inspected the old workings in the mid-seventies, but no useful work was carried out until Marathon Petroleum Australia Ltd (Marathon), commenced work in 1980. Marathon carried out a photogeological study and an orientation geochemical study. Their research concluded that the mineralisation was probably associated with the late phase differentiates of the Kitty O’Shea intrusion which had not been unroofed, and that the mainly covered terrain and strongly disseminated mineralisation from the orientation soil geochemistry results constituted a prime exploration target, possibly more interesting than Far Fanning.”
“In late 1981, Aberfoyle Exploration Pty Ltd completed mapping and rock chip sampling and put in nine costeans across the mineralisation. The rock chip sampling returned assays in the range 1.2 to 19.9g/t Au.
“In 1984, Pegmin Ltd undertook rock chip sampling along the Great Caesar lode obtaining samples ranging from 1.3 g/t Au to 38.2 g/t Au. They also sampled Caesar North, The Tunnel and Heart Stop Hill areas which had not been previously sampled.”
“At Caesar North, 250m north of the Great Caesar lode a gold bearing breccia can be traced by manganese staining and pit exposures. A rock chip sample from here returned 1.5m @ 18.4 g/t Au.”
“At Heart Stop Hill an alteration system was located extending for 300m and containing quartz and gossanous material and stockworks in arkose. Rock sampling gave values from trace to 119.5 g/t Au”
“At the tunnel, a similar zone to Heart Stop Hill trends Northwesterly and dips 45 degrees Southerly. A sample from workings here returned 124.6 g/t.”
“The Leases cover gold bearing siliceous and tectonically brecciated sandstones and fractured siltstones. Within these are gossanous quartz zones and stringer veins, striking at about 80 degrees and dipping 35 degrees north and which extend for some 550m with widths commonly around 3-5m. The sequence includes a set of repetitive mineralized beds which, in surface exposure, are quartz veined, variably gossanous, clayey and brecciated.”
“The gold is associated with minor silver, lead and copper sulphides and with abundant pyrite and arsenopyrite. A broad zone of potash alteration surrounds the main mineralization with indicated grades from surface sampling of 7.8 g/t Au and 8.1 g/t silver (Ag). Wall rock of veined, siltstone breccia averaged 2.9 g/t Au.”
End of Extracts from Pyper’s Report
Status of Mining Leases
The 3 Mining Leases have been privately held since 1991. There has been no exploration work carried out since the 1980s.
The Leases are in good standing and have an expiry date of October 2027 and may be renewed on application.
An Environmental Authority is in place for the Mining Leases and requires compliance with The Eligibility Criteria and standard conditions for mining lease activities – version 2 effective 31 March 2016. If required, an application may be made to vary the standard conditions or apply for a Site-Specific Environmental Authority
There are no mapped environmentally sensitive areas or restrictions on the Mining Leases.
Native Title has been extinguished on the Mining Leases as the leases were originally granted prior to the commencement of the Native Title Act 1993 (Cth).
Competent Persons Statement – Gold Mining Leases
The information in this report, as it relates to historic exploration results from the Great Caeser mineral deposits is based on information compiled and/or reviewed by Mr K S Weston, who is a member of the Australian Institute of Geoscientists (AIG). Mr Weston is a consultant to the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Weston consents to the inclusion in this report of the matters based on the information in the form and context in which they appear.
Emperor Energy Strategy For Gold Leases
Emperor Energy’s intention is to progress towards completion of the acquisition of the Mining Leases subject to completion or waiver of the Conditions Precedent in the Asset Sale and Purchase Agreement. It is expected that the acquisition of the Mining Leases and final settlement will be completed prior to 31st March 2024.
It is intended that an Exploration Program will then be progressed throughout 2024 with a complete soil geochemistry survey followed by a series of drilling programs aimed at establishing a JORC compliant Resource Statement.
Emperor Energy considers that subject to a successful exploration campaign this project provides an opportunity to deliver early cash flow to the company through open pit mining and processing as it continues with its flagship Judith Gas Field Project.