Operations

Exploration

Panoramic’s initial target for the Gidgee Project is to define 500,000 ounces of gold in reserves through an aggressive exploration campaign.  To achieve this goal, a dual focused exploration strategy is currently underway as follows:

Resource Extensions
Key elements of the resource extension strategy include:
•    re-optimising existing resources using the latest mining methods and taking advantage of current gold prices;
•    reviewing all historical mining areas with a priority on understanding the controls on gold mineralization;
•    completing structural analysis using existing drill cores; and
•    establishing priority areas and targets for drilling in the next 3-6 months.

Regional Targeting
Through the combination of modern airborne and ground based geophysics, coupled with regional and local geological and alteration mapping, it is intended that new targets will be generated for drilling within the next 6-12 months. 

The Gidgee Project hosts numerous historical projects with high-grade mineralisation that have not seen any significant exploration since 2005. In Panoramic’s view, considerable potential remains to expand and further define the gold resources associated with the known deposits within the Gidgee project. 

The most obvious target is within the Swan Bitter – Butcherbird area, particularly within the Premium and Cascade area where high grade resources have not been fully tested. Eagle, Heron, Omega and Snook South all have the high probability of increasing the resource base with additional exploration.

There is also a significant opportunity to identify additional mineralisation within several areas where little or no meaningful exploration has been undertaken.  A summary of a number of priority targets identified are outlined below (Figure 2).

Figure 2: Gidgee Project Tenements, Resources and Prospects
 
Premium
Premium has an indicated and inferred resource of 103,000t at 9.2g/t Au for a total of 31,000 ounces of contained gold (Figures 2,3 & 4). Better results as follows:
•    8.6m at 40.8 g/t Au in GDC058
•    11m at 17.8 g/t Au in GDC030
•    7.0m at 7.1 g/t Au in AGDC0008

Potential remains to discover additional mineralisation to the south of Premium. 

Cascade

The mineralisation at Cascade is a flat-lying southerly plunging shoot, consistent with other mineralised shoots mined at Swan Bitter underground (Figure 3). A resource of 27,000t at 9.6 g/t Au for a total of 8,000 ounces has been estimated. Mineralisation is still open in several directions with better results as follows:
•    14.7m at 5.3 g/t Au in JDWA233
•    6.1m at 10.1 g/t Au in AGDD0097
•    7.9m at 17.6 g/t Au in GDC159

Eagle

Eagle pit was mined to a depth of 50 metres, exploiting only the oxide mineralisation.  The mineralised structure below the pit has been poorly tested. Better results from historical drilling are:
•    5m at 12.7 g/t Au from 331m in GDC105
•    7m at 8.3 g/t Au from 166m in AGDC0009


Figure 3: Swan Bitter Pits and UG workings with Premium & Cascade resources


Figure 4: Premium Long Section

Heron
Significant supergene mineralisation was discovered at Heron and an historical oxide resource previously defined which remains to be verified. In addition to the supergene mineralisation there is a number of narrow, high grade hits within the primary zone. This area has been very poorly drilled with very few holes extending beneath 150 metres vertical. The majority of the drill holes have intersected significant mineralisation (>2 g/t gold) with better results including:
•    1.9m at  7.1 g/t Au from 394.1m in HWDA04
•    2m at 70 g/t Au from 331m in HWDA05
•    1.04m @ 17 g/t Au from 232.24m in HWDA08

Heron South
Drilling of the Heron South deposit, below approximately 100 metres vertical depth, is virtually non-existent.  There is a zone of about 75 metres beneath the pit where significant mineralisation remains open at depth.  Results of the deepest drill holes within this zone include:   
•    4m at 7.64 g/t Au from 121m in HRC205
•    7m at 6.72 g/t Au from 107m in HRC381

South Snook
There has been limited drilling beneath the existing pit, with no drilling more than 30 metres below the pit floor.  Despite this there are a number of strongly mineralised drill holes beneath the pit including:
•    5m at 13.2 g/t Au from 139m in DWRC295
      Incl. 3m at 21.1 g/t Au from 139m
•    3m at  8.68 g/t Au from 133m in DWRC294
•    3m at 6.99 g/t Au from 113m in DWRC293
•    3m at 12.2 g/t Au from 99m in DWRC241

Omega - Psi
The ore occurs as north-south striking lenses of quartz-pyrrhotite varying from 2–15 metres wide that plunge to the south.   Mineralisation was still open at depth when underground mining ceased.  The better results from the deeper drilling beneath the existing underground workings include:
•    4m at 29 g/t Au
•    4m at 18 g/t Au
•    3m at  9.1 g/t Au

In addition, numerous high grade intersections have been recorded beneath the Omega North and Psi pits that require additional drilling to assess the underground potential at these prospects.