Hawkwood

Map showing Hawkwood location

The Hawkwood Project, which is very well located with respect to infrastructure, has been the subject of exploration activities over the last 40 years with reported drill results from previous explorers of 0.51% copper over 20 meters, from a depth of 2 meters. In addition, trenching results from the mid 1990's are also reported to include up to 12 meters of 0.3% copper, 0.4 ppm platinum and 0.6 ppm palladium.

The Hawkwood property covers the Delubra gabbro and the Hawkwood gabbro. Both are characterised by a primary magmatic mineralogical layering and geochemical studies have shown a relationship between magnetite content, copper and PGM mineralisation and sulphidation.

The mineral deposit type to be explored for at Hawkwood is a copper-rich variant of a Skaergaard-type layered mafic complex. Past exploration has shown that copper mineralisation is associated with layered magnetite rich cumulates within an olivine ferri-gabbro. Chalcopyrite and hematite are the principal copper sulphide and oxide minerals which appear to occur in association with elevated Pt, Pd and Au values and possibly spatially related to acid dykes.

Map Showing Geology and title

Anomalies of elevated copper values returned in soil geochemical surveys are considered to be the dispersion haloes related to the supergene enrichment of the primary sulphide mineralisation, as intersected in trench and drill samples.

Drilling was successful in delineating a shallow zone of oxide copper mineralisation with intersections up to 20m at 0.51% copper from a depth of 2m. PGM mineralisation also occurs within the Hawkwood gabbro and drilling has intersected up to 10 metres of 0.6g/t Pt, 0.9g/t Pd and 0.3g/t Au.

Historical exploration at Hawkwood has also identified iron (magnetite) mineralisation with several historical estimates providing an indication of the potential. These estimates, which range in size up to 500 million tonnes at grades between 19% Fe and 25% Fe, are not NI 43-101 compliant and are provided as an indication of potential only. Historical metallurgical test work indicates concentrate grades of between 55% Fe and 63.5% Fe and magnetite recovery of 80% were attained by wet separation; however, documentation of this work is not sufficiently detailed to ascertain if the metallurgical samples were representative.

Rugby management considers the Hawkwood Project, which covers Permo-Triassic sediments, volcanic's, granite and gabbro, to also be prospective for the discovery of gold, nickel-platinoid and iron deposits.

Independent expert geologist, Clay Gordon reviewed the Hawkwood Project and has recommended an exploration program for the project. That recommendation can be viewed in the Company’s NI 43-101 Technical Report filed on SEDAR at www.sedar.com

Mary Elizabeth Prospect

The Mary Elizabeth prospect consists of numerous quartz stringers with some larger veins in sheared meta-sediments of the Narayen Beds.  A prominent 700m long potassium high is situated over the prospect and several magnetic highs occur immediately to the west.  Mapping identified old pits and adit, mullock piles, costeaning and limited shallow drilling over a 200m strike length.

Trenching returned wide intervals of elevated gold including:

Four shallow holes were drilled to test beneath the old workings. Significant intersections include

200m spaced soil sampling traverses were conducted to the north of the workings. A 10 to 76 ppb gold anomaly with elevated arsenic was defined over 150m X 800m within an extensive zone of silica-pyrite-sericite alteration. Rock chip samples within the alteration area assayed up to 5.24g/t Au. A detailed geochemical and geophysical survey is recommended to define drill targets

Rosehall Prospect

Map Showing magnetic's and previous drill holes

Rosehall is an epithermal Au-Ag prospect hosted in the mid Triassic Mt Saul Adamellite ring dyke complex.  Epithermal quartz veining, brecciation and stockwork is associated with high arsenic and zinc. Fluid inclusion indicates a temperature range of 200 to 290 deg C.

The zone of mineralisation occurs in a semi circular pattern and is 3 to 4 km long on the southern margin of the Mt Saul caldera structure.  Strong phyllic / argillic alteration with disseminated sulphide's is associated with this mineralisation.  Gold typically occurs in solid solution with arsenopyrite.

Geopeko (1986-92) drilled 60 RC and 29 diamond holes into the main prospect as well as several scout holes on IP and magnetic targets further north.  Significant intersections include

Preliminary metallurgical test work produced a concentrate with the following recoveries:

Map Showing Mag and drill holes at Rosehall