The Company owns:
· the Hodrusa-Hamre exploration licence, including the strategic extension of the licence applied for and granted to the Company – 100%;
· the Nova Bana exploration licence – 100%;
· the Rudno nad Hronom exploration licence – 100%;
· the Jasenie exploration licence – 100%; and
· the Ľubietová exploration licence application – 100%.
In January 2018 the Company completed the procedural requirements to move to 100% interests in the Hodrusa-Hamre and Nova Bana exploration licences.
Located 200 kilometres east of Vienna, the 103.5km² Hodrusa-Hamre exploration licence covers the majority of the historic Hodrusa-Hamre/Banska Stiavnica mining district, the caldera of the Neogene Stiavnica Stratovolcano, hosting some 120 epithermal veins with the major veins reaching a length of 8 kilometres.
Located 15 kilometres west of Hodrusa-Hamre, the 52.3km² Nova Bana and Rudno nad Hronom exploration licences cover an epithermal gold system with veining known to extend over an area of 3.8 kilometres by 1.6 kilometres associated with rhyolite intrusives and extrusives hosted by andesite volcanics on the flanks of the Stiavnica Stratovolcano.
The 29.4km² Jasenie exploration licence hosts a gold-tungsten project located approximately 90 kilometres northeast of the Hodrusa-Hamre licence area on the southern side of the Nízke Tatry mountains, north of Jasenie village. In the 1950s an 18 kilometre long and 400 metre to 1,000 metre wide scheelite-gold anomaly was identified at Jasenie.
Located approximately 50 kilometres northeast of the Hodrusa-Hamre licence area, the 14.2km² L’ubietová exploration licence application covers the Podlipa silver-copper-cobalt deposit which has reported mining activity for approximately 500 years from an oxide zone at shallow depths. A recent academic study has indicated the possibility of mineralisation in the deeper sulphides.
The Company’s principal focus is on the Hodrusa-Hamre and Nova Bana projects.
Prior to entering into the Earn-in Agreement with Atalaya, in late 2014, the Company conducted due diligence including collecting rock chip samples, in part to compare with the previous sample results achieved by Atalaya. Duplication of Atalaya sampling was limited by inevitable factors and it was not possible for the Company to duplicate the sample location of specific samples exactly. Nevertheless, samples collected by the Company which match with the most likely nearby Atalaya equivalent sample show no systematic bias and good correlation within the range of expected variability, thereby providing a degree of validation of the Atalaya geologic database.
Subsequently to entering into the Earn-in Agreement, the Company has continued with geological mapping, 3D digitisation of historical mining plans and voids and rock chip sampling to facilitate drill planning. Targets selected for drilling have been ranked by a matrix of factors including proximity to the Rozalia Mine (Ignac-Rabenstein, Banky, Stefan, Rozalia West) and potential to generate resource outcomes exceeding 1 million ounces of gold (Schopfer, Klokoc, Nova Bana).
The Company’s rock chip assay result highlights from numerous vein systems include:
· 29 samples averaged 7.80 g/t gold and 33.0 g/t silver from the Ignac-Rabenstein prospect;
· 138.00 g/t gold and 3,590.0 g/t silver from the Stefultov Stefan prospect;
· 47.30 g/t gold and 48.0 g/t silver from the Ignac-Rabenstein prospect;
· 58.60 g/t gold and 7,400.0 g/t silver from the Schopfer vein;
· 28.20 g/t gold and 3,210.0 g/t silver from the Schopfer vein;
· 12.50 g/t gold and 961.0 g/t silver from the Jan Benedickty prospect;
· 12.85 g/t gold and 404.0 g/t silver from the Kopanice prospect;
· 5.54 g/t gold and 8.7 g/t silver from the Jan Jozef shaft;
· 4.28 g/t gold and 272.0 g/t silver from the Rudno prospect; and
· 1.48 g/t gold and 60.4 g/t silver from the Banska Bela prospect.
The Company initially drill tested, typically with only one “sentinel” diamond drill hole in each target, the Klokoc, Banky, Rozalia West, Stefan, Trojkralova and Schopfer targets within the Hodrusa-Hamre exploration licence and also the Gupna and Kohutovo targets within the Nova Bana exploration licence. Four underground holes were subsequently completed on the known high grade stope area of the Luisa vein within the Schopfer prospect. Due to significant results from that drilling, it is the near term focus of surface drilling within the Hodrusa-Hamre project.
Sentinel drilling is high risk in terms of obtaining bonanza assay results from any individual hole, however the knowledge gained from each hole does confirm the geologic interpretation of each drilled target and is being used to refine future drilling.
Summary comments of drilling are:
· Klokoc (KKDD001) results (including 4.0 metres @ 2.35 g/t gold and 8.0 g/t silver from 187.0 metres and 18.0 metres @ 1.37 g/t Au and 8.0 g/t silver from 213.0 metres) validate the location of historic along strike intercepts.
· Klokoc structure remains open to the north and south and will be further drill tested. This style is skarn with a feeder vein intersecting limestones.
· A re-assay of the 1990s Banky drill core (VBR-7) returned 120.00 g/t gold.
· VBR-7 was drilled vertically from the same position as Banky hole BKDD001 (dip 60°). BKDD001 results (including 1.0 metre @ 3.04 g/t gold and 75.9 g/t silver from 75.0 metres) encourage a vertical redrill of the hole.
· Rozalia West (RW1) intersected the mineralisation host sequence and will guide further drill planning in conjunction with Rozalia Mine data. Ongoing discussions with Rozalia Management to determine areas of possible cooperation.
· Gupna (NBDD002) reported the first visible gold from Nova Bana in modern times from a sample returning 5.82 g/t gold at 317.0 metres.
· Kohutovo (NBDD003) reported several gold intercepts including 10 metres @1.0 g/t gold from 216.0 metres.
· Schopfer (SCDD001 to 004). Target scale is 2.5 kilometres in length of variable width up to 10 metres true width. Three dimensional remnant model completed to allow surface drilling of known high grade shoots including 1.5 metres @ 5.6 g/t gold and 258 g/t silver from surface. These short holes were completed with a handheld diamond rig underground to test the historically high grade area and has confirmed future drill out plans for this historic resource.