TECHNICAL REPORT OF THE 2003 EXPLORATION PROGRAM ON THE BURNSTONE

49
1 TECHNICAL REPORT OF THE 2003 EXPLORATION PROGRAM ON THE BURNSTONE GOLD PROJECT MPUMALANGA PROVINCE, REPUBLIC OF SOUTH AFRICA GREAT BASIN GOLD LTD. DATE: MAY 19, 2004 BY: Daniel Kilby, PEng, Great Basin Gold Ltd Robert Cluff, MSc, Great Basin Gold Ltd

Transcript of TECHNICAL REPORT OF THE 2003 EXPLORATION PROGRAM ON THE BURNSTONE

1

TECHNICAL REPORT

OF THE

2003 EXPLORATION PROGRAM

ON THE

BURNSTONE GOLD PROJECT

MPUMALANGA PROVINCE, REPUBLIC OF SOUTH AFRICA

GREAT BASIN GOLD LTD.

DATE: MAY 19, 2004

BY:

Daniel Kilby, PEng, Great Basin Gold Ltd Robert Cluff, MSc, Great Basin Gold Ltd

2

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 1

2. INTRODUCTION AND TERMS OF REFERENCE 3

3. DISCLAIMER 4

4. PROPERTY DESCRIPTION AND LOCATION 4

5. CLIMATE, PHYSIOGRAPHY, ACCESS & INFRASTRUCTURE 7

6. EXPLORATION HISTORY 8

7. GEOLOGICAL SETTING 9

Regional Geology - Witwatersrand Basin 9

Deposit Characteristics 10

South Rand and Property Geology 11

a. Stratigraphy 12

b. Structure 15

c. Footwall Geology 18

d. Sedimentology 18

8. EXPLORATION 20

a. 2003 Program 20

b. 2004 Program 21

Kimberley Reef Stratigraphy and Mineralisation 21

Area 1 21

Area 2 22

Area 3 23

9. SAMPLING METHOD AND APPROACH 23

10. SAMPLE PREPARATION, ANALYSIS AND SECURITY 24

3

11. ADJACENT PROPERTIES 26

12. MINERAL RESOURCE ESTIMATES 29

13. INTERPRETATION AND CONCLUSIONS 30

14. RECOMMENDATIONS 30

15. REFERENCES 32

16. DATE 33

17. CERTIFICATES 33

APPENDIX A 36

ILLUSTRATIONS 42

LIST OF FIGURES PAGE

Figure 4.1 Burnstone Property Location 4 Figure 4.2 Mineral Rights 6 Figure 7.1 Stratigraphic Column 9 Figure 7.2 Regional Kimberley footwall lithology and palaeo-current directions 11 Figure 7.3 Geology of the South Rand Basin 12 Figure 7.4 Burnstone Gold Deposit-Areas and Major Faults 16 Figure 10.1 Flow Sheet of Sampling and Analytical Process 24 Figure 11.1 Kimberley Reef Morphology at Evander Goldfield 26 Figure 11.2 Gold Isocons In the Kimberley Reef - Evander Goldfield 28 Figure 11.3 Kimberley Reef Channel Development – Evander Goldfield 29

1

1. EXECUTIVE SUMMARY The Burnstone Gold Project is located approximately 80 km southeast of Johannesburg, South

Africa, in the South Rand area of the Witwatersrand Basin. The Project area covers 45,676

hectares situated on portions of 22 mineral farms. In November 2002, Great Basin entered

into an agreement with Southgold Exploration (Pty) Limited (“Southgold”), a private South

African resource company, whereby Great Basin could purchase up to 100% of Southgold on

a phased basis, and acquire the right to purchase all the mineral rights of the Burnstone Gold

Project. Great Basin completed the purchase of Southgold in early 2004. Southgold and

Great Basin have pursued involvement of a Black Economic Empowerment Company as

required by the recently enacted Mineral and Petroleum Resources Development Act.

Gold was first discovered in the southeastern portion of the South Rand in 1887, leading to the

establishment of a number of small mines and prospects, which operated, intermittently from

1892 to 1962. Exploration drilling in the Burnstone Project area was conducted intermittently

during the period 1974 to 1993, initially by Union Corporation Ltd., and later by Gencor.

During this period, Anglovaal Limited also drilled the VFN-series of holes. Three boreholes

(SG1 through SG3) were drilled during the late 1990’s and early 2000, and a further 15

boreholes (SG4 – SG18) were drilled by Southgold from May to July 2002.

During 2003, Great Basin drilled 101 core holes in Areas 1, 2 and 3. A total of approximately

65,193 metres were drilled as primary holes along with an average of three deflections for

each primary hole. An additional 33 holes, totalling 21,630 metres, have been drilled in Areas

1, 2, 3 and 4 from January 2004 to April 30, 2004. The 2004 holes consist of a primary hole

along with an average of 5 deflections.

The South Rand area is located in the northeastern part of the Witwatersrand Basin. In the

South Rand, the Witwatersrand sequence is thinner than in other parts of the Basin. The West

Rand Group, comprising about 1,500 m of alternating quartz arenite and shale units,

unconformably overlies the Archaean granite-greenstone basement rocks. The overlying

Central Rand Group strata is approximately 900 m thick and includes the auriferous

Kimberley Reef horizon. The Johannesburg Subgroup, including the Bird amygdaloidal lava

and the Kimberley shale, is about 300 m thick. The Turffontein Subgroup is approximately

600 m thick and is made up of a sequence of quartz arenites and conglomerates that correlate

with the Elsburg Formation.

2

Gold occurs in a conglomerate unit called the Kimberley Reef that occurs at the base of the

Turffontein Subgroup. This horizon is developed on an unconformity surface and may rest

directly on the Kimberley shale or the Main Bird quartzites or amygdaloidal lava.

The sedimentological features, i.e. pebble size, degree of sorting, and mineralogical

composition, of the Kimberley Reef conglomerate are somewhat variable. These variations

are a function of the environment of deposition, the nature of the source area supplying

detritus, and the extent to which later hydrothermal or metamorphic fluids have passed

through the reefs. Typically, the Kimberley Reef comprises between 70 and 90% well-

rounded pebbles, made up predominantly of milky vein quartz together with lesser chert, blue

quartz, jasper, quartzite, shale and other rock fragments. Pebbles are cemented in a matrix of

finer, more angular quartz grains and a variety of phyllo-silicate minerals including sericite,

pyrophyllite, muscovite, chlorite and chloritoid.

Structural mapping revealed two structural elements strongly influence the distribution of rock

units in the Burnstone project area. A regional horst block has been elevated such that the

Kimberley Reef and its host units occur at depths shallower than the regional norm. The horst

is formed through the development of west-northwest trending faults whose dip direction

reverses from south dipping, along the southern boundary of the property to north dipping

along the northern boundary. The width of the horst block narrows to the southeast and

widens to the northwest. This flaring of the horst is caused by the divergence in strike

between the north and south bounding faults. Within this structural regime, west-northwest

trending structures are linked by arcuate, sigmoidal extension zones that are commonly

oriented east-west. These structural zones are infilled by later dolerite dykes in many places.

Surface geological data does not provide any evidence for the presence of low angle thrust

fault duplexes and stratigraphic shortening or contraction. The overall structural environment

is dominated by sinistral, trans-tensional faults. The stratigraphic section is also elevated or

depressed, locally, by the presence of regional synform-antiform couples. These folds migrate

and change in intensity relative to their position in relation to the northern border faults, and to

their proximity with basement rocks and lower Witwatersrand successions. Closer to the

northern bounding faults, the folds are characterized in some places by short steep limbs, and

in other places by long flat limbs. Farther away from these faults, the stratigraphy occurs in

gentle, open, antiform-synform couples.

Geological interpretation from the recent Great Basin drilling, combined with a detailed

review of the historical data, indicates that the Burnstone deposits are cut by a number of

northwest to east-west trending faults that are down-thrown on their northeast side. The

3

shallow block on the southwest side of Area 1, positions the Kimberley Reef within 250 m of

surface.

Based on the recent detailed drilling and compilation, there is an excellent understanding of

the geology, sedimentology and structure of the lithologies encountered in the Burnstone

project area, particularly Areas 1 and 2. It is recommended that additional drilling be

continued in Areas 2, 3 and 4, along with the continuation of the surface mapping and general

geological compilation work, to improve the geological and exploration models developed so

far and to test the additional lands that have been added to the project area since beginning of

2003, including:

collation of all available geological data to date to define/refine the current tectono-

sedimentary exploration model as well as refine targets to optimise future drilling

programs;

continuation drilling Areas 2, 3 and 4 to test and delineate mineralised shoots and

decrease the inter-borehole spacing in order to increase geological and geo-statistical

confidence levels;

continuation the surface mapping program with particular emphasis on recording

stratigraphy and structure; and

consolidation of the existing property databases for additional properties acquired.

A budget of $4,833,000 is proposed, including 40,000 m of drilling with support costs, as well

preliminary engineering and environmental work.

2. INTRODUCTION AND TERMS OF REFERENCE This technical report is filed in conjunction with the Annual Information Form of Great Basin

Gold Ltd., to document the exploration programs carried out by the Company on the

Burnstone Gold Project in 2003 and early 2004.

Sources of information utilized to produce this report include the Qualifying Report for the

Burnstone property of November 28, 2002 and appended Report on the Burnstone Property,

May 9, 2003, by GeoActiv (Pty) Ltd.; the geological and drilling database compiled by Great

Basin to the end of 2003; and various published papers on the East Rand and Evander basins.

Further details are provided in Section 21 – References.

4

Mr. Daniel Kilby, P. Eng., is Great Basin’s site manager and the Qualified Person for this

technical report. Mr. Kilby worked at the Burnstone property from February 11 to November

15, 2003 and January 5 to April 19, 2004, and supervised Great Basin’s 2003 and 2004

drilling program. Great Basin’s site consultants are Harry Meadon, Pr. Sci. Nat., and Kobus

Badenhorst, Pr. Sci. Nat., of GeoActiv (Pty) Ltd of Roodepoort, Gauteng, South Africa.

3. DISCLAIMER

In preparing this report the authors relied on:

Land title information assembled by Great Basin;

Geological reports completed previously by Behre Dolbear and GeoActiv;

Data from historic drill holes and holes drilled by Great Basin to April 30, 2004; and

Information from published reports on the Witwatersrand Basin and its goldfields.

4. PROPERTY DESCRIPTION AND LOCATION The Burnstone Project area is situated in the Mpumalanga Province of South Africa,

immediately southeast of the town of Balfour, and approximately 80 km to the southeast of

Johannesburg (Figure 4.1).

East Rand Goldfields

Evander Goldfields

South Rand Basin

West Rand Goldfields

Welkom Goldfields

Klerksdorp Goldfields

Carletonville GoldfieldsAnglo GoldGold FieldsHarmony

DRD

DRDAnglo Gold

HarmonyAnglo GoldGold Fields

Placer DomeHarmony

Harmony

50 km

Burnstone Gold Project

Central Rand Group

West Rand Group

Basement Granite

Johannesburg

Balfour

BURNSTONEAU DEPOSIT

SOUTH AFRICA

NAMIBIA

BOTSWANA

ANGOLA

ZAMBIA

ZIMBABWE

MO

ZA

MB

IQU

E

500 km

AFRICA

South Africa

Atlantic

Ocean

Indian

Ocean

Cape Town

Johannesburg

WitwatersrandGoldfield

Avgold

Kronstad Goldfields

Figure 4.1. Burnstone Property Location (modified after Anhaeuser & Maske, 1986)

5

The Burnstone project encompasses 45,676 hectares and is situated on portions of 22 farms

contiguous over the deposit.

The mineral rights under option (permitted and non-permitted) are listed below and shown in

Figure 4.2:

Owner Ha %

Gold fields 13,568 30%

Rietbult Estates 7,288 16%

Southgold 2,287 5%

Taurus 1,365 3%

Puma 2,744 6%

Private 18,424 40%

TOTAL 45,676 100%

At present, Great Basin has not negotiated any surface rights for the Burnstone property. Like

many countries, South African surface rights are separate from mineral rights. However,

South African mineral law gives mining companies the right to gain surface access to drill and

to obtain permits for discovered minerals. Since mineral rights holders can gain surface rights

where it is necessary to exploit mineral rights, the necessary surface rights will be acquired

once it is finalized how the Burnstone property will be developed.

Property AgreementIn November 2002, Great Basin entered into an agreement with the shareholders of a private

South African company, Southgold Exploration (Proprietary) Limited (“Southgold”) to

acquire up to 100% of Southgold (“the Southgold Agreement”). Southgold holds the rights to

purchase the Burnstone Gold Project, and any subsequent mining would be subject to

government legislation, which provides for historically disadvantaged South Africans to earn

an interest in mining developments.

In early 2004, Great Basin exercised its option and completed the purchase of 100% of

Southgold by making cash, share and share purchase warrant payments to Southgold

shareholders in two staged tranches, totalling US$3.25 million (of which US$1.25 million was

paid on signing), 21 million shares and 10.5 million share purchase warrants exercisable at

US$0.75 for one year from the date of issuance. Exercise of the share purchase warrants is

subject to an accelerated expiry provision under certain conditions.

6

Siya themba

13

28

RE/133

30

12

25

15

53 15

29

26 13

RE

27

14

25

15

8

24

10

11

9

54

23

29

2

17

16

14

22

52

51

RE/5

20 19

18

7

3

4

5558

6

RE

47

9

9

2

RE

8

12

20

1

2(RE)

RE

RE/11

6RE

RE/7

7

4

5

19

17

18

16

15

13

6

1

9(Ptn/6)

11RE

16 14

3

9

15

13

1

11

1

1

RE/3

10(Ptn 3)

10

26

17

13

18

19

8(Ptn/2)

RE/1

(Ptn/4)7

15

16

RE/4

7

143

15

RE/4

1

11

RE/4

21

30

31

5

12

14

13

12

3RE

1

56

3

50

4

20

14

10

1

3

7

2

9

8

12

RE

4

11

5

613

57

16

10

7

5

9

4

3

15

1411

8

8

92s

23

11(Ptn/6)

10(Ptn/6)

20

RE/10

RE/2

RE

RE/5

RE/6

18

3

RE/3

RE/2

16

8

RE/5

RE

(21)

13

3

7(10)

4

38

39 53

51

30

2

11

52

40

4 1

48

36

49

47

6

28

3 7

3 4

35

46

5

32

33

13

8

921

24

9 12

9

710

20

14

31

22

811

4 3

42

50 44

RE/1

28

13

18

12

14

5

45

54

758

6

2415

23

192756

26

57

17

16

2

ROODEPOORT 598 IR

DOORNHOEK 577 IR

ZYFERFONTEIN 576 IR

BAKKIESFONTEIN

568 IR

RIETVALEI

546 IR

SPRINGFONTEIN549 IR

RUSTFONTEIN

548IR

KLEINFONTEIN

567 IR

BAARNAARDSKOP 637 IR

HAARTBEESTFONTEIN 638 IR

5 km

VANKOLDERSKOP

550 IR

VANKOLDERSKOP

552 IR

VANKOLDERSKOP

547 IR

DAGBREEK

551 IR

BRAKFONTEIN 513 IR

VLAKFONTEIN

558 IR

VLAKFONTEIN 556 IR

RIETBULT ESTATES 505 IR

RIETFONTEIN 561 IR

VLAKFONTEIN

569 IR

GreylingstadGreylingstadGreylingstad

BalfourBalfour

-350

00

mE

-2970000 mN

-2960000 mN-2960000 mN

-2940000 mN

-2950000 mN -2950000 mN

-2940000 mN

-2980000 mN

-45

000

mE

Mineral Rights HeldMineral Rights HeldMineral Rights HeldMineral Rights HeldMineral Rights HeldMineral Rights HeldMineral Rights HeldMineral Rights HeldMineral Rights Held

Area 1

Area 2

Area 3

Area 4

Area 3

Figure 4.2. Mineral Rights

7

5. CLIMATE, PHYSIOGRAPHY, ACCESS & INFRASTRUCTURE The Burnstone property is situated in the Mpumalanga Province approximately 80 km

southeast of the city Johannesburg and east of the town of Balfour. The property is connected

to Balfour by paved and gravel roads that cross the property and Balfour by paved road to the

National Johannesburg – Durban highway N3. The nearest major airport is the Johannesburg

International Airport located west of Johannesburg, some 70 km northwest of the Burnstone

property.

The property is also crossed by the national grid power lines and by two rail lines, one being

the main Johannesburg, Durban trunk line. There are three rail sidings on the property. The

Rand Water Board trunk water main into Balfour has excess pipeline capacity sufficient to

service a mine or mill’s needs. An independent rock quarry producing crushed stone is also

located on the surface lands to the southwest of the Burnstone Area 1 deposit. The stone

quarry is sufficiently distant as to not interfere with the Burnstone Project development.

The Burnstone property is located on the South African Highveld at an average altitude of

1,670 m. Topographic relief is gently rolling grassland terrain, which is amenable to

construction and operation of a mine and mill, including tailings impoundment facilities and

waste rock storage sites. There is more than adequate space in which to locate mine facilities

on the lands overlying the Burnstone deposit.

The area has a mild climate, with about six weeks of chill and frost in mid-winter (July-

August). Due to the relatively high altitude, winter nights can be cool and freezing can occur.

The rainy season occurs during the summer and drought conditions usually prevail in winter.

Summer rainstorms are often ferocious and can be accompanied by substantial lightning.

Hailstorms occur occasionally.

The Balfour area has been intensively farmed for corn and hay for nearly 100 years,

consequently there is very little indigenous vegetation remaining in the property area. The site

development should it occur, including declines, mineshafts, mill and tailings storage facilities

would be located some 6.5 km from the village of Balfour. Preliminary reviews indicate that

there appear to be few, if any, environmental concerns.

8

6. EXPLORATION HISTORY Gold was first discovered in the southeastern portion of the south Rand area in 1887, leading

to the establishment of a number of small mines and prospects, which operated, intermittently

from 1892 to 1962. Antrobus (1986) defined the South Rand as a small 30 km2 area which

included four small mines south of Greylingstad, namely the Heidelberg-Roodepoort, Kildare,

Hex River and Southeast Witwatersrand Mines, all of which are now dormant. Pretorius

(1964) and De Jager (1986), however, applied a broader definition in which the gold field

included the entire area south of the Sugarbush fault.

The Heidelberg-Roodepoort Mine was the largest single producer in the area. Here, the

Kimberley Reef is well developed and characterised by pronounced chloritisation and

pyritisation, particularly along the bottom contact. The reef was consistently viable over the

mine lease area and operations were eventually terminated in 1942, at a depth of around 300

m, by a fault which vertically displaced the reef, from which position it was mined from the

Kildare Gold Mine property.

Exploration drilling in the Burnstone Project area was conducted intermittently during the

period 1974 to 1993, initially by Union Corporation Ltd., and later by Gencor. During this

period, the VFN-series of holes were also drilled by Anglovaal Limited (now known as

Avgold Limited). Three boreholes, SG1 through SG3 were drilled during the late 1990’s and

early 2000, and a further 15 boreholes (SG4 – SG18) were drilled by Southgold from May to

July 2002.

Great Basin acquired its option to purchase Southgold in November 2002. As part of the

transaction, Great Basin committed to completing a US$1.5 million program directed at

further testing the Area 1 deposit in preparation for feasibility studies. The program began

with a regional aeromagnetic survey, which provided a structural interpretation that greatly

assisted in identifying structural discontinuities affecting the project area. Diamond drilling

was then carried out in Area 1. The objective of the drilling was to better define and increase

the confidence in the resource estimate for the Area 1 gold deposit. The program, comprising

30 holes (21,716 m in primary holes and valid deflections) of infill and step-out drilling, was

carried out from January to April 2003. Drilling continued throughout the remainder of 2003

and into 2004. Drilling took place in the central portions of the Burnstone project area. Since

commencement of the drill program in January of 2003 to April 30, 2004, Great Basin Gold

completed 134 drill holes totalling 86,823 metres of NQ core drilling.

9

7. GEOLOGICAL SETTING

Regional Geology - Witwatersrand Basin The Witwatersrand Basin is underlain by an Archean (>3.1 Ga) granite-greenstone basement

and the 3,086 – 3,074 Ma Dominion Group. It is overlain, unconformably, by rocks of the

Ventersdorp (2.7 Ga), Transvaal (2.6 Ga) and Karoo (280 Ma) Supergroups.

The first significant classification of the stratigraphy of the Witwatersrand Supergroup was

presented by Mellor (1917) and was based on his work in the Central Rand goldfield. This

grouping was found to be applicable on a basin-wide scale, although a more detailed appraisal

would uncover significant variations in the nature and thicknesses of the sequences from one

portion of the basin to another. In 1980, the South African Committee for Stratigraphy

(“SACS”) published a detailed lithostratigraphic classification in which the Lower and Upper

Witwatersrand systems were renamed the West Rand and Central Rand Groups, respectively.

The Hospital Hill, Government Reef and Jeppestown Series were classified as Subgroups and

the Main – Bird and Kimberley – Elsburg Series renamed the Johannesburg and Turffontein

Subgroups, respectively (Figure 7.1).

Figure 7.1. Witwatersrand Stratigraphic Column (Burger pers. Comm, 1982)

10

The northern part of the Witwatersrand Basin (Central Rand, East Rand, Evander and South

Rand Basins) was dominated by syn-depositional sinistral oblique-reverse to strike-slip

tectonics along major, ENE-trending, steeply dipping fault systems which formed in response

to a craton-wide, NE-SW compressional stress regime (Myers et al., 1990, 1992; Charlesworth

& McCarthy, 1990; Spencer, 1992). In comparison to the wrench tectonics along the northern

margin, the western margin of the Witwatersrand Basin was characterised by syn-depositional,

easterly verging thrust tectonics, leading to the formation of major low-angle thrust faults and

thrust-related folding of the Witwatersrand Supergroup strata (e.g. Vermaakt, 1995; Antrobus

et al., 1986). In the areas of widespread mining in the Central and Western Rand areas, the

structure is far better understood than in the Burnstone project area of the South Rand Basin.

Large thrusts observed in adjoining mines over larger areas would be less obvious and more

difficult to define in the South Rand Basin. Low angle thrusts could well exist in the

Burnstone project area, but would only be identified and located during mining activities.

Continuous NE-SW compression peaked in mid-Ventersdorp-time, leading to NW-SE

directed crustal extension, the relaxation of all pre-existing, syn-Witwatersrand Supergroup

faults and the formation of major normal and strike-dip faults resulting in the development of

local grabens as well as roll-over anticlines (McCarthy et al., 1990; Vermaakt & Roering,

1991; Myers et al, 1992).

Evidence exists in the literature for a possible late-Ventersdorp to pre-Transvaal

compressional event associated with north to northeast directed thrusting along the northern

margin of the Witwatersrand Basin (Hilliard, 1994; Vermaakt, 1995; Coetzee et al., 1995;

Hilliard & McCourt, 1995).

Deposit Characteristics The Witwatersrand Basin is one of the most intensively studied sedimentary sequences in the

world. It is widely agreed by geologists that deposition took place along the interface between

a system of large rivers and a major body of still water or an inland sea. The basin is filled

with approximately 14,000 m of sedimentary and subordinate volcanic rocks, which have been

folded along a northeast to southwest axis into an asymmetrical synclinorium (Pretorius,

1974). At present, most workers accept a foreland model for the development of the Basin, not

unlike that proposed by Burke et al. (1986). Stratigraphically, the vast majority of economic

placers have been found in the upper Subgroup of the Witwatersrand Supergroup, the Central

Rand. However, it should be emphasized that the principal placers of the various gold fields of

the Basin do not all occur at the same stratigraphic level.

11

The goldfields of the Witwatersrand Basin are considered to signify major, diachronous, entry

points of coarse-grained sediment into the basin. The deposits formed probably represent

laterally coalesced fluvial braid-plains, where gold was concentrated within conglomerates

developed primarily on unconformities of the progressive type. Those parts of the proposed

braid-plains that contain economic gold concentrations commonly extend for 10 to 30

kilometres down depositional dip, and for up to 10 to 12 km along depositional strike. Some

of the major goldfields are separated by “gaps”, areas where no economic placers have been

discovered. Figure 7.2 shows the formation parameters of the East Rand Basin, the Evander

Basin and the South Rand Basin.

Evander

Basin

South

RandBasin

EastRandBasin

Figure 7.2. Regional Kimberley footwall lithology and palaeo-current directions (GeoActiv, 2002)

South Rand and Property Geology In the South Rand, conglomerates are substantially less well understood compared to other

parts of the Witwatersrand Basin. The only viable horizon worked in all of the now defunct

mines was the Kimberley Reef, which occurs at the base of the Turffontein Subgroup. This

horizon is developed on an unconformity surface and may rest directly on the Kimberley shale

or the Main Bird quartzites or amygdaloidal lavas. It was previously thought that the reef

mined at the Edenkop Mine was equatable with the Coronation Reef of the Government

12

Subgroup in the Klerksdorp gold field (Pretorius 1964), but more recently it has been shown

to be the same as the Kimberley Reef mined elsewhere in the South Rand, Figure 7.3.

Balfour

Kimberley Shale

Quartzites

Ventersdorp Lavas

Basement Rocks

Area 1

Geological Legend

Kimberley Reef

Balfour

Kimberley Shale

Quartzites

Ventersdorp Lavas

Basement Rocks

Area 1

Geological Legend

Kimberley Reef

Figure 7.3. Geology of the South Rand Basin

a. Stratigraphy The sequence in the South Rand is considerably thinner than in other parts of the

Witwatersrand Basin. The West Rand Group unconformably overlies Archaean granite-

greenstone basement and comprises about 1,500 m of alternating quartz arenite and shale

typical of the sequence elsewhere in the basin. Central Rand Group strata are less well

developed with the Johannesburg Subgroup, including the Bird amygdaloid and the Booysens

shale, comprising about 300 m. The Turffontein Subgroup is 600 m thick and made up of a

sequence of quartz arenites and conglomerates correlatable with the Elsburg Formation.

The following is the stratigraphic sequence, from top to bottom, for Areas 1-3.

Karoo Sequence rocks are found as cover in large parts of Area 1, however, there are only

minor rocks of the Karoo sequence in Area 2 and no Karoo units have been observed at Area

3. The Karoo rocks are represented by Ecca (EC) sandstones, shales and coal and Dwyka

(DY) tillite and coal. Large areas are covered with Karoo dolerite sills.

13

The Ventersdorp Sequence in the deposit area is represented by Ventersdorp sediments, north

of the area at Klein Vankolderskop where the drilling intersected Klipriviersberg Group lavas

(KBG), followed by well-developed Alberton Porphyry Formation (APF) and then the talcose

lava of the Weston Area formation (WF).

The Ventersdorp Contact Reef (VCR) is developed in places and forms the base of the

Ventersdorp Sequence, in places well mineralized with sulphides. In general the VCR

represents a medium – large pebble conglomerate (MPC – LPC) with some inter reef

quartzite. The Speckled Reef Zone (SPR) is more often developed than the VCR and consists

of a small pebble conglomerate (SPC) which is usually very poorly packed and sorted and has

no discernible unconformity with the SCRZ of the Witwatersrand.

The Scattered Reef Zone (SCRZ) of the Brendan Conglomerate Formation consists of the

scattered reef zones set in a green coloured siliceous quartzite. The reefs are usually very

poorly packed and very poorly sorted with occasional sulfide mineralisation. The reefs are

poorly defined with their continuity not known as yet. The average thickness of the SCRZ

from historical and current drilling excluding any holes with structural complications is

approximately 55 m. The SCRZ thins towards the north and east to approximately 20 m, but

towards the south of the drilling area SCRZ of up to 80 m is seen.

The Drab Zone (DZ) of the Kinross Conglomerate Formation is a dark coloured, highly

argillaceous, uniform quartzite. It is gritty in places and usually has a transitional contact with

the underlying Intermediate Zone (IZ). The average thickness of the DZ is approximately 85

m. The DZ also thins towards the north and east.

The Intermediate Zone (IZ) of the Kinross Conglomerate Formation is quartzite that is more

siliceous than the DZ but contains major argillaceous banding. The IZ contains more

abundant gritty zones. The average thickness of the IZ is approximately 90 m. The IZ again

thins towards the north and east.

The Intermediate Reef (IR) of the Kinross Conglomerate Formation is found at the base of the

IZ, it is usually a gritty zone with an associated pyrite rich horizon, it is highly variable and

locally not developed.

The Hanging Wall 1 (HW1) of the Elsburg/Evander Quartzite Formation is a quartzite with

varying character. It varies from very argillaceous to cleaner and siliceous, but in general the

14

HW1 is more siliceous and sericitic than the IZ and easily distinguished from IZ quartzites.

The average thickness of the HW1 is approximately 14 m.

The Leader Reef (LR) of the Elsburg/Evander Quartzite Formation is an underdeveloped zone,

usually consisting of a dark coloured gritty unit or zone of dark coloured grits, but in places it

is not developed at all.

The Hanging Wall 2 (HW2) of the Elsburg/Evander Quartzite Formation also has a varying

character, but it is often differs slightly from the HW1 with less argillaceous material. A grit

marker zone in the hanging wall, similar to the LR, is developed approximately 5 – 7 m above

the top of the reef. In historical work, this unit was often misinterpreted as the LR (Gencor,

Southgold). The average thickness of the HW2 is approximately 44 m. Some thinning of the

HW2 takes place towards the north and east.

The Kimberley Reef of the Elsburg/Evander Quartzite Formation unconformity cuts

downward to north and east of the area, with MK3 quartzites found as the footwall unit,

immediately south of the current drilling area. KS and PUD form the footwall in the central

part of the Burnstone area. MBQ1 and then BA1 occur as the footwall units to the Kimberley

Reef in the northeast.

Puddingstone (PUD) channel deposits, consisting of diamictite and chloritoid shale, are found

in the area, and are younger than the Kimberley Shale and are thought to be an erosional

precursor to the Kimberley Reef.

Kimberley Shale (KS) of the Booysens Shale Formation is black-coloured shale. The unit is

commonly altered near the top, close to the reef, and has a khaki colour.

The Main Bird Quartzite 1 (MBQ1) of the Leandra Quartzite Formation is a very clean

siliceous fuchsitic quartzite. A thin transitional zone with the KS results in a more

argillaceous quartzite at the top.

Bird Amygdaloidal Lava 1 (BA1), tuff and tuffaceous lava occur at the top, followed by

amygdaloidal lava.

A non-magnetic dioritic sill, with an average thickness of a 100 – 105 m, is seen in Areas 1

and 2. The sill starts in the footwall Stratigraphy in the southern parts of Areas 1 and 2, then

15

cuts through the reef (sill break through) to become a hanging wall unit, and shortly thereafter

breaks out to surface.

Between conglomerate dominated reef and the thick quartzite dominated reef, there is an area

that probably represents an environment where longitudinal gravel conglomerate bars formed

preferentially. Such bars are elongated in plan view, and separated from each other by

channels flowing both parallel to the bars, and diagonally across their long dimensions. The

clast-supported gravel bars probably formed along the sides of high-energy streams and at

places where the flow depth changed. This area, characterized by a relative abundance of

clast- and matrix supported conglomerate units within the reef profile, is thought to have the

best potential for economic gold concentrations. Other conglomerate facies also have the

potential to be auriferous as well. In general, gold concentration decreases with a decrease in

packing density of conglomerates, as well as an increase in the number of sandy litho-facies

within the vertical profile.

The channel width diagram suggests a channel direction of from northeast to southwest in

Area 1 and 2. A possible explanation is that the regional drainage was in a southwesterly

direction and other streams joined the main stream from a more northwesterly direction, as

observed in the channel width diagram.

b. Structure The South Rand gold field is displaced by a number of large east – west-trending faults, which

were originally probably of reverse attitude. The northern limit of the gold field is defined by

the Sugarbush fault, which is down-thrown to the south of up to 3,000 m, and is largely

responsible for the preservation of the Witwatersrand strata in this region (Pretorius 1964).

Sediments of the West Rand Group and Central Rand Group were also deformed prior to

Ventersdorp deposition. The South Rand area currently defines an arcuate sub-outcrop pattern

known as the Balfour synform, which is concave to the north.

Geological interpretation from the recent Great Basin drilling, combined with a detailed

review of the historical data, indicates that the Burnstone deposits are cut by a number of

northwest to east-west trending faults that are down-thrown on their northeast side (Figure

7.4). The shallow block on the southwest side of Area 1 positions the Kimberley Reef within

250 m of surface. The down-thrown block on the northeast flank of Area 1 has resulted in the

Kimberley Reef being situated at approximately 1,000 m from surface in that area. Structural

contours of the Kimberley Reef also indicate that although Area 1 is located on a regional

broad antiform, it consists primarily of shallow north and south dipping fault blocks.

16

B

B’A

A’

C

C’

Figure 7.4. Burnstone Gold Deposit-Areas and Major Faults

The structure of Areas 1 – 3 is dominated by the Sugarbush fault in the north, and associated

faults (i.e. Step 1 and 2 faults). The southerly dipping listric Sugarbush fault bounds the

deposit areas in the north. Basement granites and lower Witwatersrand group rocks are found

north of the fault. The Step 1 and 2 faults are steeply northerly dipping (approximately 80 )

faults with a combined displacement of over 550 m. The faults can be traced through Areas 1

and 2. Several splays from the Step 1 and 2 faults, with throws of up to 100 m, are found in

Areas 1 and 2 (for example, there is a cross fault in Area 1 and the splays in the vicinity of

drill holes SGG081, SGG052 and 1950 in Area 2). Minor north – south faults (for example,

the Darby fault) are also present.

Several shallow horst blocks, with Witwatersrand rocks exposed at surface, are located south

of the step faults in the center of the study area. The Kimberley Reef occurs at depths of 250

– 450 m below surface in a wide zone extending from Area 1 and 4 to Area 3. It is bound in

17

the south by southerly dipping faults with varying displacements. This horst and graben effect

is similar to what is seen in the Free State and Klerksdorp Goldfields.

An anticlinal feature is present on the shallow horst block in Areas 1 and 2. The anticline is

associated with the sill break out; the anticlinal feature is accentuated by the apparent thrusting

along the break out. The break out probably occurs as the plain of weakness along the fold

axis of the very gentle anticline.

Several intrusions have been observed in drill holes and have also been interpreted from the

aero magnetic map. North-south magnetic dykes are found between Areas 1 and 2. East -

west trending dykes are present in Areas 2 and 3.

Evidence of left lateral movement has been seen from displacement of quartz diorite dykes.

The lateral movement has been used in interpreting grade distribution in Area 2 with some

success.

Great Basin commissioned a structural mapping program that was carried out from January to

April 2004, revealing two structural elements that strongly influence the distribution of rock in

the Burnstone project area (Oliver, 2004; see Regional Geology Map in Illustrations at the

back of the report). A regional horst elevates the rock units in the central portion of the

Burnstone property to shallow depths. The horst is formed through the development of west-

northwest trending faults, the dip direction of which reverses from south, along the southern

boundary to north the along the northern boundary. The width of the horst narrows to the

southeast, and broadens to the northwest. This flaring of the horst is caused by the divergence

in strike direction between the north and south bounding faults. These faults may converge

southeast of the property boundary.

Across 14 km of sectional width, 14 fault structures were mapped. Of these 14 structures, 12

are sinistral trans-tensional faults. Only two are likely to be dextral.

Within this structural regime, west-northwest trending structures are linked by arcuate,

sigmoidal extension zones, commonly east-west in their orientation. These structures have,

commonly, been in-filled by later dolerite dykes. There is no evidence from surface

geological data for the presence of low angle thrust duplexes and stratigraphic shortening or

contraction. The overall structural environment is dominated by sinistral, trans-tensional

faults. Offsets of sub-vertical, planar, quartz diorite dykes provide the most reliable estimates

18

of translational offsets. Offsets of folded volcanic contacts, particularly in the North Witpoort

area (Area 3) may result in conflicting movement histories.

The stratigraphy has also been elevated and depressed, locally, by the presence of regional

synform-antiform couples. These folds migrate and change in intensity relative to their

distance from the northern border faults, and to their proximity to basement and lower

Witwatersrand successions. Closer to northern bounding faults, the folds are characterized by

short steep limbs, and long flat limbs. Farther from the major northern bounding faults, the

stratigraphic section occurs within gentle, open, antiform-synform couples.

Some evidence exists for stratigraphic thinning across the crest of the major antiform, which

transects the central portions of the Burnstone property. This west-northwest trending

structural feature may have been present at the time of sedimentation.

The upper contact of the Alberton Porphyry is one of the most useful regional assessments of

the depth to the top of the VCR and Scattered Reef Zone. These rocks will typically lie

approximately 150 – 180 m below this contact. The KR occurs 300 – 420 m below the VCR.

The contact provides an excellent lithologic marker to screen basement highs.

c. Footwall Geology The lithology of the footwall to the Kimberley Reef varies across the entire project area. The

Kimberley Shale forms the footwall to the reef in the central part of the project area and forms

the greatest portion of the footwall lithologies in the area investigated to date. Laterally, the

unconformity exposes successively higher stratigraphic units to the southwest, representing

less extensive erosion across the unconformity surface. To the northeast, the unconformity

exposes older stratigraphic units, representing uplift to the northeast (Devon Dome) during

Kimberley Reef deposition.

d. Sedimentology In the Burnstone area, the Kimberley Reef is generally an upward fining, quartz pebble

auriferous conglomerate that was probably deposited within a braided river environment. It

overlies a major unconformity at the base of the Evander Quartzite Formation, part of the

Turffontein Subgroup of the Central Rand Group.

Nature of the Unconformity The Kimberley Reef occurs on a major angular unconformity, which correlates with the

unconformity that occurs at the base of the GE8A Unit in the Klerksdorp Goldfield across the

19

Witwatersrand Basin as well as the unconformity at the base of Big Pebble Reef - 6A Reef

within the northern Free State Goldfields (Target – Sun Areas).

The Kimberley Reef unconformity resulted from a regressive truncation of the footwall from

southwest to northeast. Within the Burnstone area, the MK3 Quartzite, Booysens Shale

Formation, Main Bird Quartzite 1 (MBQ1) and Bird Amygdaloid (BA1) are progressively

truncated to the northeast by the unconformity.

This progressive erosion of the footwall units to Kimberley Reef also affected the

Puddingstone Unit. The Puddingstone represents a major erosion event that pre-dates the

unconformity. Below the unconformity, the subcrops of the footwall units generally strike

northwest – southeast. As only surface borehole data is available, it is assumed that the

palaeo-surface is relatively flat.

Lithology of the Kimberley Reef

In the Burnstone area, the Kimberley Reef may generally be described as:

Poorly sorted,

Sub-rounded,

Clast to matrix supported,

With a maximum pebble size generally within the very coarse pebble size range, i.e.

from 32 to 64 mm,

The matrix can vary from siliceous to argillaceous, with some sericite and chlorite,

Pebble types are predominantly white quartz, lesser smoky quartz, minor chert and in

places, blue quartz, quartzite, shale rip-up clasts (Booysens Shale Formation), and

acidic lavas,

Pyrite, both crystalline and buckshot (generally rare), and carbon may be present, and

Visible gold has been noted in a high proportion of intersections.

Visible gold has been noted throughout the project area in the Kimberley Reef in a number of

differing settings: in conglomerate with an argillaceous/siliceous matrix, in the

presence/absence of carbon and pyrite/sulphides, and in places, where no pyrite or carbon has

been observed within the conglomerate, within sandy conglomerate and diamictite footwall.

Reef Types / Reef Definition

The Kimberley Reef displays considerable variation, both vertically and laterally as can be

expected in a braided river environment. A broadly defined interpretation that has not yet

20

been fully quantified is proposed. The overall Kimberley Reef package generally fines

upward, and contains minor quartzite components.

In general, the Kimberley Reef is a robust conglomerate, with subordinate gritty/pebbly

quartzite units, that exhibits a remarkable degree of geological continuity over the project area.

The thickness of the Reef can vary from 2 – 3 cm (pebble lag) to over 100 cm (channel reef

types). The base of the Reef is always sharp, i.e. well distinguished from the underlying

lithology. The footwall to the Kimberley Reef is one of the following: MK3 Quartzite,

Booysens Shale Formation, Puddingstone Unit, MBQ1 or Bird Amygdaloid (BA1). Usually,

the top of the Reef is defined by the top of the conglomerate unit but in some cases, the top is

defined by the Kimberley Reef Quartzite, which is, lithologically, distinct from the Hanging

Wall 2 quartzites. In some cases, a diffuse top contact has been observed, and is thought to be

the result of the development of either a pebbly or gritty quartzite unit on top of the

conglomerate. This quartzite is not always distinct from the Hanging Wall 2 quartzites. The

dominant component of the Kimberley Reef is conglomerate, with lesser quartzite.

Sedimentological Model

Though not fully quantified, the Kimberley Reef is interpreted having been deposited in three

distinct settings:

Thin Conglomerate/Pebble Lag Kimberley Reef, that occurs to the northeast and

along the northeast margins of the Burnstone property; palaeo-current directions

indicate it was deposited from the northeast;

Clast and Matrix supported conglomerate, that occurs in the zone of Area 1 and 2 of

the Burnstone property with an interpreted current direction from the northeast, and

Channel Type Conglomerate Kimberley Reef containing both conglomerate and

quartzite, that occurs along the south-southwest portions of the Burnstone property,

with indicated palaeo-current directions from northwest to southeast.

8. EXPLORATION

a. 2003 Program A regional aeromagnetic survey was flown in late 2002 and made up the bulk of the Phase I

exploration program. The structural interpretation from this survey has greatly assisted in

identifying structural discontinuities affecting the project area.

21

Three phases of drilling – Exploration phases II, III and IV - were conducted in 2003.

Geosearch (Pty) Limited of South Africa carried out the drilling programs, with 101 drill holes

completed.

Phase II drilling was concentrated primarily in Area 1. Drill holes SGG001 through SGG040

as well as 45 and 47, totalling 32,526 m of NQ diameter core (4.76 cm) and lesser quantities

of BQ diameter core (3.64 cm) in primary boreholes and deflections, were drilled. The drilling

was designed to decrease the inter-borehole distances to a spacing of approximately 350 m.

Phase III and Phase IV drilling was focused more on Areas 2 and 3, with the objective of

increasing the understanding of the geological and sedimentological features of these areas as

well as moving towards outlining mineral resources. Approximately 26,671 m in primary

holes and deflections were drilled during this phase. The holes drilled were SGG041 to

SGG080, with the exception of holes 45 and 47.

Subsequent drilling in 2003, still as part of the Phase III and Phase IV exploration programs

targeted Areas 1, 2 and 3. During this phase, an additional 5,996 m in primary holes and

deflections were drilled, including holes SGG081 through to SGG101. Refer to Figure D –

SGG boreholes localities and Areas 1, 2, and 3.

b. 2004 Program Exploration Phase V continued the drill program in Areas 1, 2 and 3 and initiated drilling in

Area 4. An additional 33 holes totalling 21,630 metres have been drilled in Areas 1, 2, 3 and

4 from January 2004 to April 30, 2004. The 2004 holes consist of a primary hole along with

an average of 5 deflections. The purpose of the two additional deflections was to provide

samples for mining and metallurgical studies. The purpose of holes drilled in Area 1 was to

infill areas for additional information and to drill across (using inclined holes) the major faults

in the area to better understand the nature and mechanics of structural complications. Holes in

Area 2 and 3 were to continue to outline the area of economic mineralization within the

Kimberley Reef in those areas. Drilling in Area 4 was initiated to evaluate the continuous

nature of the Kimberley Reef from Area 1 into the down-dip extensions in Area 4.

Kimberley Reef Stratigraphy and Mineralisation

Area 1See Cross Section A-A’ in Illustrations at the back of the report (section location is shown on Figure 7.4); analytical results are summarized in the Area 1 tables in Appendix A.

22

Area 1 consists primarily of younger Ventersdorp Supergroup volcanic material

unconformably overlying the Central Rand Group sediments of the Witwatersrand

Supergroup. The Ventersdorp Contact Reef (VCR) located at the base of the volcanics was

also intersected in numerous drill holes and sampled for its gold content. However the VCR

was found to be of low grade or barren of gold.

The Kimberley Reef unconformably overlies the Puddingstone, Kimberley Shale and Main

Bird Quartzites, indicating that erosion has down-cut into the older stratigraphy, progressively,

from southwest to northeast.

The Kimberley Reef conglomerate is variable in terms of its pebble size, degree of sorting,

and mineralogical composition. These variations are a function of the environment of

deposition (braided river environment), the nature of the source area supplying detritus, and

the extent to which later hydrothermal or metamorphic fluids have passed through the reefs.

Typically, the Kimberley Reef comprises between 70 and 90 % well-rounded pebbles, made

up predominantly of milky vein quartz together with lesser chert, blue quartz, jasper, quartzite,

shale and other rock fragments. Pebbles are cemented in a matrix of finer, more angular quartz

grains and a variety of phyllo-silicate minerals including sericite, pyrophyllite, muscovite,

chlorite and chloritoid.

A mineralogical investigation revealed that gold grains were present in many of the analysed

samples reflecting the high gold values exhibited by some of the samples. The matrix of these

gold-bearing conglomeratic reefs is uncharacteristically low in sulphides and other heavy

mineral components, especially considering that some of them contain the high gold values.

Overall, all samples studied displayed similar mineralogical characteristics. Quartz is the

dominant phase and the matrix minerals are predominantly chlorite, mica and apatite.

Uraninite and pyrobitumen (kerogen) was observed indicating possible correlation with higher

gold grades.

Area 2See Cross Section B-B’ in Illustrations at the back of this report (section location is shown on Figure 7.4); analytical results summarized in the Area 2 tables in Appendix A.

Visible gold has been observed within the Kimberley Reef conglomerate in approximately

50% the drill holes from Area 2, and the gold appears to be more coarse-grained than that of

Area 1 boreholes. Most of the drilling in Area 2 has intersected a thicker Kimberley Reef

horizon that contains more quartzite material. Predominantly, Puddingstone and Kimberley

Shale, form the footwall of the Kimberley Reef in Area 2.

23

Area 3See Cross Section C-C’ in Illustrations at the back of this report (section location is shown on Figure 7.4); analytical results are summarized in the Area 3 tables in Appendix A.

More abundant nodular carbon has been noted in the Kimberley Reef conglomerate in Area 3.

This is often associated with abundant visible gold and pyritic sands, particularly when the

footwall is comprised of the MBQ1 quartzite unit. There is a considerable variation in reef

types between various deflections from a single borehole in Area 3. In addition, the quartzite

component can be considerably higher than the amount of conglomerate in the Kimberley

Reef package.

9. Sampling Method and Approach One hundred and one holes, totalling 65,193 m of NQ core (4.76 cm diameter) and BQ core

(3.64 cm diameter) were completed in primary boreholes and deflections during the 2003

program. An average of three deflections were drilled from each primary hole, to increase the

sampling of the Kimberley Reef in each location. An additional 33 holes, totalling 21,630

metres, have been drilled in Areas 1, 2, 3 and 4 from January 2004 to April 30, 2004. The

2004 holes consist of a primary hole along with an average of 5 deflections. The purpose of

the two additional deflections was to provide samples for mining and metallurgical studies.

Drill core was boxed at the drill and shipped daily to the secure logging facility at Balfour.

There the drill core was photographed, geologically logged and selectively sampled. Digital

photograph images were taken of each box of core and were archived on CD-ROM. Core

recovery was generally very good, averaging 99.8% for the sampled intervals.

Information recorded in the sample logs included: drill hole I.D., from (m), to (m), core angle,

recovery, sample number, core size, completeness code, representative (yes/no), status

(complete/incomplete), use (yes/no), stratigraphy code, lithology code and general comments.

In addition to this specific gravity measurements were taken from sampled intervals of

Kimberley reef and surrounding wall rock.

The minimum length proscribed for reef samples was 15 cm of core (approximately 250 g).

To ensure that the reef intersection was cut into two equal halves without bias, a cut-line was

marked at the low point of the bedding plane of the base of the reef. Depending on the core

angle at the base of the reef intersection, a maximum of 2 to 3 cm and a minimum of 1 cm of

the footwall rocks were also included in the basal sample of the reef. Two samples were taken

above and below the reef intersection as follows:

24

Hanging Wall

Sample immediately above reef is +/- 25 cm in length

Uppermost sample is +/- 25 cm in length.

Foot Wall

Sample immediately below the reef is +/- 25 cm in length

Lowermost sample is +/- 25 cm in length.

In addition to the regular mainstream samples, quality assurance/quality control (QA/QC)

samples were inserted into the reef sample stream. These included: blank samples (half core

from the overlying Au-barren drab quartzite) and standards (pulps) inserted as a check on lab

accuracy. The analytical laboratory was unaware of the identity of the QA/QC samples. If the

value for a standard or a blank was not within acceptable limits the sample lot was reassayed.

10. Sample Preparation, Analysis and Security A drill core sampling and analytical flow diagram is attached as Figure 10.1.

Samples were taken by sawing the core in half lengthwise with a diamond-tipped blade. With

the base of the reef dipping away from the sampler, the top half cores are always submitted for

assay. This ensures consistency and unbiased sampling procedures. The samples were placed

in bags and sealed with numbered “Pull-Tite” chain-of-custody security seals and stored in a

locked and secured building prior to being delivered to the analytical laboratory. The

remaining half core was returned to the core boxes and stored at the Balfour warehouse.

25

Figure 10.1 Flow Sheet of Sampling and Analytical Process

NQ Core Sample

(4.76 cm diameter) +/- 20 cm Length

½ CoreRemainder

+/- 400 g

Coarse Sample e.g. 5040

½ Core

Original Split

DRILLING:by Geosearch,

Cores Transported

by Geosearch from

Drill Site to SouthGold Facility

at Balfour

LOGGING:Logged and Sampled

by Geoactiv at

Balfour Facility

SAMPLE PREPARATION: Prepared at SGS

Lakefield

Laboratory Johannesburg South Africa

SHIPPING:½ Core Samples

Transported to SGS

Lakefield Research Africa (Pty) Limited

Laboratory Johannesburg South

Africa

ANALYSIS:

at SGS Lakefield Au

by Triplicate 50g Lead Collection Fire Assay with AAS or Grav. (if High), Ag by AAS, S

by LECO, U308 by

XRF, for some samples Trace

Elements by Total Digestion ICP-OES

finish.

Core Sawn in Half

Stored at SouthGold Warehouse

Balfour South

Africa

Entire Sample Dried,

Crushed to 70% < 2 mm

(10 mesh)

Entire Sample Pulverized to 95%

< 75 micron

Project & Commercial

Standards

Blind Standard Inserted

Immediately Above Last Reef Sample

+/-400 g Regular Pulp

e.g. 5040

+/-200 g Pulp

Reject

Au Standarde.g. 5039

STD 98GV3

Photographs Archived on CD

Core Photography

Inserted After any Visible Gold Sample or After Last

Reef SampleCoarse Blank (Drab

Quartzite) e.g. 5041

Selected Duplicates Incl. all Au Results > 5.0 g/t

SHIPPING:Duplicate Pulp

Samples Shipped by

Air Freight to Acme

Analytical Laboratory,

Vancouver, Canada

Check

Assay

Acme

50 g Au

Assay

"A"

50 g Au

Assay

"B"

50 g Au

Assay "C"

Au Result Average of Triplicate FA Fusions A B C50 g FA Fusion

Approximately

10% of Duplicates

Stored at SGS Lakefield or Acme

26

11. ADJACENT PROPERTIES The Evander goldfield is located approximately 120 km east of Johannesburg. The principal

economic horizon is the Kimberley Reef, which was deposited in a subsidiary sedimentary

basin contemporaneous with the early stages of the Turffontein Subgroup of the Central Rand

Group.

A series of basin subsidence and uplift phases resulted in the deposition of several

sedimentary sequences. Later, erosion of the elevated basin-margin resulted in the deposition

of the Kimberley Reef in a network of braided channels. Major faulting and dislocation

occurred as well as a final tectonic event, involving a tilting of the whole basin 8 to 10º to the

north in post-Transvaal times.

The Kimberley Reef represents the distal facies of a fluvial placer that was deposited by a

system of braided-streams, which flowed down a northeasterly dipping palaeoslope. The reef

is oligomictic and comprises a composite sequence of channel-sediments that define

longitudinal gravel bars and sand bars with pebbly veneers. Multi-channeling is well

developed in areas where the reef is thick (Figure 11.1).

Figure 11.1. Kimberley Reef Morphology at Evander Goldfield (Tweedie, 1986)

The Central Rand Group in the Evander goldfield comprises a composite sequence of

interbedded conglomeratic and non-conglomeratic quartzites that average 650 m in thickness.

The sequence is very thin at Evander when compared to the western part of the

27

Witwatersrand. Interbedded within this sedimentary pile are two andesitic lava units, and the

Kimberley Shale is the only argillite present (Tweedie, 1968). Many of the units occurring

below the Kimberley Reef are lithologically very similar to those occurring at a similar

stratigraphic position in the East Rand Basin.

The Kimberley Reef rests on a well-defined angular unconformity, which is responsible for a

cut-down in a southwesterly direction of approximately 200 km of footwall stratigraphy. The

Kimberley Reef was deposited during a regressive truncation of the footwall-beds, as a result

of tectonic uplift to the southwest, with progressively older beds underlying the reef higher up

the palaeoslope. Hence, it is only along the eastern margin of the basin that the thickest

footwall succession is preserved. Eventually, the Kimberley Reef is, itself, truncated and sub-

outcrops beneath Karoo sediments along the southern and western margins of the basin.

The Kimberley Reef at Evander is a quartz pebble conglomerate orebody that is characterized

by an abundance of pebbles and conglomeratic layers, interbedded with subordinate quartzite

units. Harmony Gold has provided Great Basin’s geologists and South African contractors

with the opportunity to examine the pebble conglomerate Kimberley Reef in the Evander mine

in detail along with geological discussions of Reef formation and economic evaluations.

Examples of the reef examined include an auriferous, 10 cm thick single conglomerate

horizon as well as a 1.5 m thick interval of the reef that contains up to three 15-20 cm thick

horizons of quartz pebble conglomerate. Textures and structures observed in the course of the

drill program at Burnstone were near identical to those observed in the mining faces at

Evander. The mine tours at Evander greatly aided in the visualization and interpretation of the

Kimberley Reef horizon that was intersected during drilling at Burnstone.

Gold within the Kimberley Reef occurs as minute, free particles in the matrix and also as

inclusions within compact detrital pyrite (Hallbauer et al., 1978). The average grade of the

reef, taken over 25 years of production, is indicated to be 8.56 g/t, and the ratio of this grade to

the mean grade for the whole Witwatersrand Basin is 0.92.

The pattern exhibited by the gold isocons across the Evander Basin correlates very well with

the regional dispersion or drainage pattern defined by reef isopachs. Well-developed, linear,

gold-value trends are directed towards the north-west, north, north-east, east and south-east.

Many of these split and re-unite in a manner very similar to the channel trends defined by reef

isopachs.

28

The correlation between gold-value trends (Figure 11.2) and the axis of inferred Kimberley

Reef channels (Figure 11.3) is good, with the paucity of sand filled channels enhancing this

correlation. The axes of channels and high value trends are not necessarily coincidental, as

this factor depends on the physical properties of each channel. This is compounded by the

fact that these major channels are not single units, but comprised of an ordered hierarchy of

channels and bars of varying orders of magnitude. The most important conclusion to be

drawn is the high degree of parallelism between the channel and the value trends. Although

the correlation between thickness isopachs and gold isocons is generally good, areas of poor

correlation do exist.

Figure 11.2 Gold Isocons In the Kimberley Reef - Evander Goldfield (Tweedie, 1986)

29

Figure 11.3 Kimberley Reef Channel Development – Evander Goldfield (Tweedie, 1986)

12. MINERAL RESOURCE ESTIMATES

For details of resource estimates for Area 1, see the “Report on the June 2003 Resource

Estimate for Area 1 of the Burnstone property, Mpumalanga Province of the Republic of

South Africa” by James A. Currie, P.Eng., Behre Dolbear & Company, July 2003. An

updated Resource Estimate for Area 1 and a Resource Estimate for Area 2 will be published in

about 1 months’ time.

30

13. INTERPRETATION AND CONCLUSIONS It can be concluded that after 15 months of drilling and data collection, an excellent

understanding exists pertaining to the geology, sedimentology and structure of the Burnstone

Gold Project area. The geological and exploration models developed thus far will only

improve with more drilling, surface mapping and general geological data collection during

2004.

Geological and analytical data collection and manipulation have been carried-out in a very

professional and efficient manner.

14. RECOMMENDATIONS Based on the detailed drilling and compilation, there is an excellent understanding of the

geology, sedimentology and structure of the Burnstone project area, particularly Area 1. It is

recommended that additional drilling be carried out in Areas 2, 3 and 4, as well as surface

mapping and general geological compilation work, to improve the geological and exploration

models developed so far and to test the land that has been added to the project area since

beginning of 2003, including:

collation of all available geological data to date to define/refine the current tectono-

sedimentary exploration model as well as refine targets to optimise future drilling

programs;

continuation drilling Areas 2, 3 and 4 to test and delineate potential mineralised shoots

and decrease the inter-borehole spacing in order to increase geological and geo-

statistical confidence levels;

continuation the surface mapping program with particular emphasis on recording

stratigraphy and structure; and

consolidation of the existing property databases for additional properties acquired.

The proposed budget provides for drilling of 40,000m of NQ core in Areas 1, 2, 3 and 4. The

40,000 m drill program provides for the definition and delineation of the Kimberley Reef

(sedimentology, grade and thickness) in the four areas as well as drill holes for engineering

purposes (location and nature of faulted areas, metallurgical samples and rock strength tests).

The budget provides for the geological staff (wages and expenses) required to document and

interpret the data obtained and for the sampling and analysis of the intersections obtained. It

also provides for Sedimentology studies and Resource Calculation consultants. Technical

31

graphics will be done on site and the budget provides for these costs (wages etc) and

acquisition of the required hardware.

Mine contractors have been engaged to conduct an updated assessment of the mine plan and

mining costs based on the recent resource estimate and grade model. They will then progress

into the Prefeasibility study for the twin decline option complete with capital and operating

costs to 15%. The contractor will also address the project power requirements including

sources and costs for power, substation/transformer sizing and costing and power distribution.

Metallurgical test work for gravity and leach tests is currently underway. An RSA consultant

will be engaged to provide a process plant flow sheet and general arrangement, and capital and

operating costs.

Pertinent contractors will provide an overview of the environmental risks including surface

and groundwater, air, noise, dust, and visual impacts for all phases of the project. This same

contractor will also address options for disposal of tailings including identification of mill

sites and tailings sites, and capital and operating costs associated with tailings disposal.

Included will be the costs of tailings delivery to the impoundment facility, and water reclaim

back to the mill.

An independent contractor will address the project permitting requirements and permitting

timelines.

The proposed budget required for the continuation of the above investigations is as follows:

Field Costs $CDN

(note: converted from rand at R5.25 = $1CDN)

Assays and Analysis

Assays and Analysis $86,333 Verification Contractors $14,648

Drilling

Diamond Drilling (36,000m) $2,7422,857 Bottom Hole Deflections (4,000m) $304,762 Engineering

Project Engineering $226,350 Consultant Reports/Resource Calculations $50,476 Scoping/Prefeasibility Studies $321,905 Enviromental

Environmental Studies $14,286 Lands/Permitting $54,954 Equipment Rentals/Leases $3,810

32

Geological

Geological Consultants (GeoActiv) $352,381 Geodata Handling $15,238 Geological Salaries $265,714 Surveyor/Data Acquisition $23,810 Freight $5,333 Database Management and Graphics

Draughting Wages $49,524 Graphics Supplies $14,286 Site Activities Field Supplies $12,381 Room and Board $53,333 Site and Equipment Fuel $21,905 Site Rentals (Vehicles) $15,238

Telephone/Fax $11,429 Mineral Farms/Fees $29,524

Travel $142,857Total Field Costs $4,833,333

15. REFERENCES Antrobus, E.S.A., (1986). The South Rand Goldfield. In: Mineral Deposits of Southern

Africa, I (C.R. Anhaeusser and S. Maske, eds.): Geological Society of South Africa,

Johannesburg, p. 698 – 703.

Currie, James A., (2003). Report on the June 2003 Resource Estimate for Area 1 of the

Burnstone property, Mpumalanga Province of the Republic of South Africa, Behre Dolbear &

Company, July 2003, Technical Report prepared for Great Basin Gold Ltd.

De Jager, F.S.J., (1986). The South Rand Goldfield. In: Witwatersrand Gold – 100 Years

(E.S.A. Antrobus, ed.): Geological Society of South Africa, Johannesburg, 167 – 172.

GeoActiv (Pty) Ltd (2002). Geological Report on the Burnstone Gold Project, appended to

Rance, Derek C., (2002). Qualifying Report on the Burnstone Property, Gauteng Province of

the Republic of South Africa, Behre Dolbear & Company Ltd, November 28, 2002. Technical

Report prepared for Great Basin Gold Ltd.

Oliver, J.L. (2004). Structural and Stratigraphic Relationships of the East Witwatersrand

Basin, Burnstone Gold Project, Mpumalanga Province, South Africa. Internal Report for Great

Basin Gold Ltd.

Pretorius, D.A. (1964). The geology of the South Rand Goldfield. In: Geology of some ore

deposits in Southern Africa, 1. (S.H. Haughton, ed.): Geological Society of South Africa,

Johannesburg. 219 – 282.

Tweedie, E.B. 1978. History, geology and value distribution of the Evander Goldfield,

Eastern Transvaal, South Africa, Proc. 11th Min. Metall. Congr, 23. 8pp.

Tweedie, E.B. 1986. The Evander Goldfield. Mineral Deposit of South Africa, pp705-730.

33

16. DATE The date of this report is May 19, 2004.

17. CERTIFICATES

34

Daniel B. Kilby, P.Eng. [email protected]

I, Daniel B. Kilby, of 718 East Fourth Street, North Vancouver, British Columbia hereby certify that:

1. I am an employee of Hunter Dickinson Inc, with a business office at Suite 1020-800 West Pender Street, Vancouver, British Columbia. Hunter Dickinson Inc., on behalf of Great Basin Gold Ltd., contracted my services to carry out and supervise exploration programs on Burnstone Gold Project, South Africa in 2003 and 2004.

1. I am a graduate of the University of British Columbia (B.A.Sc., Geological Engineering, date 1971).

2. I have practiced my profession continuously since graduation and have been involved in and managed exploration projects internationally, including mineral deposit resources delineation and evaluation in Canada, United States of America, Mexico and South Africa.

3. I am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia, registration number 14283.

4. As a result of my experience and qualifications, I am a Qualified Person as defined under National Instrument 43-101.

5. I have visited the Burnstone property and supervised drilling programs at site in 2003 and 2004. I was on site during the periods of January to December 2003, and January to April 2004. I am familiar with the geology, topography, physical features, access and local infrastructure.

6. I am not aware of any material fact or change with respect to the subject matter of this Report, which is not reflected in the Report, and the omission of which would make the Report misleading.

7. I have read National Instrument 43-101. 8. I consent to the use of this Technical Report for disclosure purposes of Great Basin Gold

Ltd.

Signed at Heildelburg, Gauteng, South Africa on the 19th day of May, 2004.

“Daniel B. Kilby” __________________________ Daniel B. Kilby, B.A.Sc., P.Eng.

35

G. Robert Cluff, BSc(Hons), MSc [email protected]

I, G. Robert Cluff, of 8089 158A Street, Surrey, British Columbia hereby certify that:

9. I am an employee of Hunter Dickinson Inc, with a business office at Suite 1020-800 West Pender Street, Vancouver, British Columbia. I was employed by Hunter Dickinson Inc., on behalf of Great Basin Gold Ltd., to carry out exploration programs on Burnstone Gold Project, South Africa in 2003 and 2004.

10. I am a graduate of the University of Saskatchewan, Saskatoon Campus, with the degrees B.Sc.(Hons), date 1974 and M.Sc., date 1981.

11. I have practiced my profession continuously since graduation and have been involved in and managed exploration projects internationally, including mineral deposit resources delineation and evaluation in Canada, United States of America, Mexico and South Africa.

12. I have visited the Burnstone property and supervised drilling programs at site during 2003 and 2004. I was on site at individual intervals of up to 30 days a time during the periods of January to December 2003, and January to April 2004. I am familiar with the geology, topography, physical features, access and local infrastructure.

13. I am not aware of any material fact or change with respect to the subject matter of this Report, which is not reflected in the Report, and the omission of which would make the Report misleading.

14. I have read National Instrument 43-101.

15. I consent to the use of this Technical Report for disclosure purposes of Great Basin Gold Ltd.

Signed at Vancouver, BC on the 19th day of May, 2004.

“G. Robert Cluff” _______________________________________ G. Robert Cluff, B.Sc.(Hons), M.Sc.

36

APPENDIX A

SUMMARY OF ANALYTICAL RESULTS – DRILLING IN AREAS 1,2,3

37

Great Basin Gold Ltd.

Burnstone Project

AREA 1 - All Drill Hole Results (True Widths)

Hole

Number

From

(metres)

To

(metres)

Intercept

(cm)

Gold

(g/t)

Thickness

x Grade

(cmg/t)

1127 540.88 541.15 27.4 18.54 508

1687 936.66 937.02 36.3 6.22 226

1688 213.47 213.75 27.6 9.37 258

1774 725.40 725.63 22.7 14.88 338

1843 243.50 243.97 47.1 38.65 1819

1877 849.89 850.03 14.2 12.82 182

1890 1297.86 1298.00 14.3 17.02 243

2510 310.65 311.29 64.1 9.53 611

2531 874.53 874.72 18.8 0.74 14

2626 365.43 365.68 24.6 55.16 1357

2671 444.10 444.52 41.7 2.21 92

2693 684.97 685.81 84.3 5.02 423

2725 401.13 401.32 18.8 7.55 142

2729 243.10 243.72 61.8 19.63 1213

2730 781.71 781.96 24.9 30.54 760

2732 750.36 750.72 36.0 3.06 110

2734 230.00 230.03 2.5 1.32 3

2744 199.49 199.85 35.5 0.89 32

2755 273.33 273.81 47.5 16.35 776

2757 213.10 213.37 27.3 12.03 329

2767 626.06 626.65 58.8 11.03 648

2772 611.82 612.50 68.2 3.38 231

2773 325.73 325.97 23.5 12.15 285

2785 625.94 626.21 27.4 3.34 91

2789 1034.21 1034.44 22.7 9.57 217

2791 415.57 415.85 27.8 12.08 335

2809 469.92 470.11 19.3 1.23 24

2811 939.75 940.07 31.5 53.64 1691

852 874.68 875.02 34.2 67.67 2314

879 677.40 677.62 21.8 8.97 195

SG11 310.40 310.58 17.8 18.35 327

SG12 397.63 397.87 24.2 2.53 61

SG16 393.28 393.54 26.0 4.53 118

SG17 370.56 371.04 48.1 4.30 206

SG4 340.07 340.22 14.9 0.39 6

SG5 271.55 271.78 22.9 27.89 638

SG6 282.18 282.85 67.3 4.84 326

SG7 508.35 508.55 19.6 18.00 353

HIS

TO

RIC

AL

HO

LE

S

38

Great Basin Gold Ltd.

Burnstone Project

AREA 1 - All Drill Hole Results (True Widths)

Hole

Number

From

(metres)

To

(metres)

Intercept

(cm)

Gold

(g/t)

Thickness

x Grade

(cmg/t)

SGG001 577.63 577.87 24.3 18.34 446

SGG002 581.56 581.68 12.4 0.06 1

SGG005 391.42 391.60 17.6 42.95 756

SGG006 526.60 526.76 15.8 6.11 97

SGG007 305.94 306.31 37.0 18.65 690

SGG008 589.04 589.97 92.8 21.11 1960

SGG010 338.84 339.09 25.0 9.41 235

SGG014 340.77 340.97 20.0 2.35 47

SGG015 231.02 231.33 30.6 3.01 92

SGG017 642.18 642.78 59.8 25.83 1543

SGG019 250.13 250.26 13.1 0.81 11

SGG020 213.36 213.69 32.6 2.05 67

SGG022 785.48 786.12 63.8 4.13 263

SGG023 1046.68 1046.86 18.3 2.13 39

SGG024 950.60 950.71 10.9 2.34 26

SGG025 736.41 736.55 14.3 3.81 54

SGG026 557.53 557.97 44.4 10.11 449

SGG028 708.51 708.76 24.7 9.77 242

SGG030 716.38 716.90 51.7 16.11 833

SGG031 583.57 583.72 14.8 2.34 35

SGG033 952.49 952.74 25.1 14.06 353

SGG034 831.63 831.78 15.1 2.10 32

SGG035 647.94 648.30 36.1 0.23 8

SGG036 627.14 627.26 12.3 22.11 273

SGG037 715.83 715.95 12.3 0.58 7

SGG038 774.20 774.34 14.2 5.59 79

SGG039 573.86 573.99 13.2 5.52 73

SGG040 998.50 998.96 46.1 8.15 375

SGG045 631.51 631.93 42.0 6.23 262

SGG047 314.23 314.42 18.7 5.13 96

SGG088 384.02 384.45 43.2 1.15 49

SGG097 415.44 415.76 32.1 18.52 594

SGG106 304.52 304.76 23.5 7.06 166

SGG108 344.79 344.95 16.3 45.24 738

SGG111 333.62 334.09 46.6 2.41 112

SGG113 407.59 407.87 28.0 44.87 1254

SGG116 280.21 280.34 13.2 6.40 84

SGG118 355.88 356.50 62.3 5.54 345

SGG120 195.29 195.73 43.5 19.11 831

Average of 26 holes above

350 cmg/t Au40.9 22.4 918

Average of 32 holes above

300 cmg/t Au37.8 21.4 808

GR

EA

T B

AS

IN

HO

LE

SIn

clu

de

s

His

tori

cal

Ho

les

39

Great Basin Gold Ltd.

Burnstone Project

AREA 2 - All Drill Hole Results (True Widths)

Hole

Number

From

(metres)

To

(metres)

Intercept

(cm)

Gold

(g/t)

Thickness

x Grade

(cmg/t)

1898 461.08 462.15 106.6 2.05 219

1950 1091.92 1092.35 42.6 18.85 803

2200 750.71 751.19 47.9 9.16 438

2410 557.03 557.42 39.0 7.25 283

2497 292.81 293.82 100.7 0.85 85

2520 394.74 394.98 24.1 18.21 440

2663 391.42 391.64 22.3 1.66 37

2670 1062.21 1062.40 19.0 2.59 49

2721 338.28 338.57 28.8 3.85 111

2849 465.81 466.80 98.6 6.07 599

2850 530.87 531.13 26.1 2.52 66

SG13 401.27 401.80 52.5 10.41 546

SG14 399.82 400.19 36.5 12.99 474

SG15 459.04 459.28 24.4 3.56 87

SG3 554.98 555.65 67.3 15.78 1063

SG8 478.00 478.15 14.6 0.22 3

SG9 539.33 540.02 68.9 5.89 406

HIS

TO

RIC

AL

HO

LE

S

40

Great Basin Gold Ltd.

Burnstone Project

AREA 2 - All Drill Hole Results (True Widths)

Hole

Number

From

(metres)

To

(metres)

Intercept

(cm)

Gold

(g/t)

Thickness

x Grade

(cmg/t)

SGG041 775.99 776.25 26.1 0.58 15

SGG043 750.48 750.93 45.1 0.28 13

SGG046 445.25 445.60 35.4 8.71 308

SGG048 554.92 555.27 34.9 3.08 108

SGG049 589.07 589.75 67.5 2.71 183

SGG050 439.16 439.61 44.9 11.91 535

SGG051 395.37 396.18 81.3 4.48 364

SGG052 1288.53 1288.92 39.2 2.45 96

SGG053 414.97 415.57 60.1 2.10 126

SGG054 559.93 560.21 27.7 5.57 154

SGG056 490.29 491.57 127.9 2.90 371

SGG058 367.22 367.81 59.3 4.55 270

SGG059 543.10 543.60 50.3 4.82 243

SGG060 602.42 602.98 55.6 6.50 362

SGG061 414.29 414.89 60.1 1.70 102

SGG063 355.83 356.00 16.8 11.84 199

SGG065 353.96 354.96 100.3 0.17 17

SGG066 1171.23 1171.39 16.1 3.56 57

SGG067 677.07 677.38 30.5 10.15 309

SGG070 418.02 419.09 106.9 4.51 482

SGG072 672.51 672.69 18.4 2.38 44

SGG073 404.69 405.06 37.1 2.64 98

SGG075 511.77 511.92 14.9 1.25 19

SGG078 548.57 548.72 15.0 11.95 179

SGG079 612.29 612.44 14.9 0.68 10

SGG081 1314.32 1314.72 39.7 27.10 1074

SGG090 753.69 754.61 91.5 7.14 653

SGG091 417.02 417.50 47.7 3.84 183

SGG093 488.37 488.58 21.0 12.50 263

SGG094 537.84 538.23 38.7 10.49 406

SGG096 631.72 632.24 51.9 1.75 91

SGG099 462.12 462.28 15.9 2.08 33

SGG100 530.85 531.11 25.8 10.67 276

SGG102 425.09 425.87 78.1 1.53 119

SGG103 438.81 438.96 15.1 17.41 263

SGG107 691.11 691.44 32.5 7.05 229

SGG115 799.90 800.55 64.7 3.90 253

SGG121 659.30 660.53 123.2 1.05 129

Average of 16 holes above

350 cmg/t Au64.1 8.8 563

Average of 18 holes above

300 cmg/t Au61.4 8.7 535

GR

EA

T B

AS

IN H

OL

ES

Inclu

des

His

tori

cal

Ho

les

41

Great Basin Gold Ltd.

Burnstone Project

AREA 3 - All Drill Hole Results (True Widths)

Hole

Number

From

(metres)

To

(metres)

Intercept

(cm)

Gold

(g/t)

Thickness x

Grade

(cmg/t)

2985 381.90 382.18 27.5 35.77 983

3090 1090.86 1091.47 61.0 21.60 1317

SGG064 428.18 428.34 15.6 28.77 450

SGG071 358.06 358.20 14.4 1.93 28

SGG074 380.06 380.59 53.4 11.80 630

SGG077 352.37 352.53 16.0 20.98 335

SGG080 355.25 355.41 15.9 35.06 557

SGG082 342.47 342.62 15.2 2.64 40

SGG084 396.43 397.02 59.1 2.58 153

SGG086 369.14 369.31 16.6 2.01 33

SGG089 241.90 242.06 15.9 0.72 12

SGG092 461.38 461.52 14.3 5.92 85

SGG095 319.70 319.86 16.3 25.40 415

SGG098 362.10 362.19 8.6 0.22 2

SGG104 434.11 434.41 30.4 31.76 965

SGG109 346.49 346.72 22.6 0.33 7

SGG110 408.60 408.75 14.9 27.31 406

SGG114 396.89 397.08 18.8 1.17 22

SGG123 485.81 485.97 15.5 6.74 105

Average of 8 holes above

350 cmg/t Au29.4 24.4 715

Average of 9 holes above

300 cmg/t Au27.9 24.1 673

HISTORICAL

HOLES

GR

EA

T B

AS

IN H

OL

ES

Inclu

des

His

tori

cal

Ho

les

42

ILLUSTRATIONS

Regional Geology Map Cross Section A-A’ – Area 1 Cross Section B-B’ – Area 2 Cross Section C-C” – Area 3

Axial fault

-2944000

-2954000

-2952000

-2950000

-2948000

-2946000

-2958000

-2956000

-46000

-44000

-42000

-40000

-38000

-36000

-34000-2942000

WP1

816

835

852

879

946

969

1111

1684

1688

1695

1714

1730

1749

1765

1774

1780

1807

1808

1809

1843

1877

1890

1912

2

2126

2142

2168

2201

2216

2314

2346

2401

2489

2510

2531

2588

2643

2659

2671

2693

2722

2723

2728

2729

2730

2733

2734 2755

2757

2773

2786

278

2790

2791

2799

2809

2810

2927

BH2 ( c ) BH3

VFN1

VFN2

VFN3

VFN4

VFN5

VTN1

76M-1

76M-5

76M-6

76M-7

76M-11

RE1

RE2

RRE1

RRE2

RRE4

RRE5

RRE9

BK1

B

GG1

DMR1

SG4

SG6

SG7

SG11

SG16 S

S

SGG024SGG027

SGG028SGG031

SGG032

S

SGG045

SGG088

SGG09

* Darker shades represents the outcropgeology and lighter shade the local geology

Intrusive Rocks

Quartz Diorites

Dolerite

Scattered Reef zone - conlomerate/quartzite

SGG043Drill Hole Location and Number

Ventersdorp Sequence

Ventersdorp lava flows

Alberton Porphyry

Drab and Intermediate Quartzite

Platberg Volcaniclastic Rocks

Central Witwatersrand Sequence

Faults

Lower Wits quartzites with conglomerate

Iron formations and siltites.

Bird Amygdaloidal lava flows

Main Bird Quartzite

Lower Wits quartzites

Lower Witwatersrand Sequence

Karoo Sedimentary Rocks

Black reef and Dolomite

Legend

Area 1Area 1Area 1Area 1Area 1Area 1Area 1Area 1Area 1

Area 4Area 4Area 4Area 4Area 4Area 4Area 4Area 4Area 4

1

2

3