Commissioners Gold (CGU)

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CGU

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Commissioners Gold (CGU) is an Australian gold explorer with a focus on proving up economically viable deposits of gold in the Lachlan Ford Belt mineral province of New South Wales. The company has acquired a portfolio of six projects over six tenements covering a ground area of over 500 square kilometers. Commissioners Gold was listed on the Australian Securities Exchange (ASX) on 2 September 2011.

Oberon Project
The Oberon Project comprises an exploration licence of 83 units (approximately 260km²) centred on the NSW central western town of Oberon. The area was selected for its potential for intrusion-related gold deposits. The main target is the advanced Black Bullock prospect, where gold in volcanic-associated chert horizons has been tested by previous drilling and IP survey. The attachment shows the three main zones of mineralisation with the solids being the zones of anomalous IP. Most previous drilling was carried out prior to the IP. The IP has successfully delineated zones of disseminated sulphides, within which are significant zones of mineralization in the West and NW zones.

Both the West and Trig zones are open along strike. The NW zone appears to be steeply plunging and is probably cut off to the south by a fault which disrupts the IP zone. The possible continuation of this zone has not been drilled. In addition the central zone of IP anomalism has been intersected by only two holes, one of which intersected greater than 1 g/t gold (3m @ 2.26 g/t). The southeast zone of IP anomalism, which is highly conductive, has not yet been drilled. Commissioners Gold Ltd plans to extend the IP survey and carry out drilling to delineate a resource.

The tenement area also includes the Duckmaloi prospect, which has been partly explored by other companies in the past. Duckmaloi is primarily a tungsten-bismuth prospect but also contains significantly anomalous values of gold, silver and copper. Drilling by previous explorers at Duckmaloi produced some interesting results, including 8.6m @ 0.49% WO3 and 10m @0.28% WO3 and 0.3% Bi. Given the current high price of tungsten, these results are regarded as quite significant and Commissioners Gold Ltd will re-evaluate Duckmaloi as a possible small tungsten mine that could generate early cash flow for the Company.

In addition, grass roots exploration at Oberon will focus on previously unrecognised intrusion-related gold potential.

Mongarlowe Project
The Mongarlowe Project is located 80km east of Canberra, and tenure is secured by two exploration titles. The project covers an almost continuous area of historic goldmining, 60km in length, from 8km south of Mongarlowe to 15km north of Nerriga. Within this area recorded alluvial production far exceeds the recorded reef production, indicating much of the source of the alluvial gold remains to be discovered.

At the southern end of the project are many old goldmining workings around the town of Mongarlowe, many in bedrock. The area is however subject to Mining Reserve No 3177. It is reported that the reef workings were hampered by heavy inflows of water. The reefs are described as being narrow and high grade, but stockwork systems are also recorded. Total recorded reef production was 220kg Au, at very high grades, however these records are almost certainly incomplete.

The most substantial operation was the Day Dawn Mine, which operated from 1880 to 1908. It is reported to have been mined to the 122m level, with a shaft to 147m. Gold production was "estimated at 40,000oz" and it "ceased working because of depth of water in it" (Russell, 1989). The main line of reef was worked in a number of separate mines, but appears to be continuous over a length of 3.5 km, but there is no record of modern drill testing.

Alluvial Gold
Alluvial gold is recorded to cover an estimated area of 7700ha. Alluvials include both current and former river gravels, and in addition to the Mongarlowe area, these include the historic Oallen, Spring Creek Jacqua, Nerriga and Corang goldmining areas, historically referred to as the Nerriga Gold Field. This field has a mainly alluvial production history, recorded as 14,177oz from 1878-1901. Historic alluvial goldmining was restricted by lack of water. High level Tertiary alluvials represent a potentially economic target, but the as yet unidentified hard rock source of the the alluvials is the prime focus of Commissioners Gold Ltd.

Bedrock is dominantly outcropping Ordovician metasediments. Southwest of the project area, these metasediments are intruded by the Braidwood Granodiorite, a well known gold source. Within the project area, the Rise and Shine mine south of Mongarlowe may be a distal Intrusion Related Gold deposit, related to the Braidwood Granodiorite. This prospect will be explored for previously unrecognized styles of mineralization.

Modern exploration of reefs and alluvials is almost non-existent. Only a handful of holes have been drilled. No previous modern explorer has controlled the entire Mongarlowe gold mining field; Commissioners Gold Ltd has the first opportunity for integrated modern assessment of this exciting field.

Cowarra Project
The Cowarra project is a joint venture with Capital Mining Limited and is located approximately 100km south of Canberra and 40km north of Cooma.  The project consists of the historic Cowarra gold mine and a number of nearby workings within tightly folded and sheared Ordovician metasediments.  The sediments have been intruded by the Silurian Bega Batholith, which outcrops to the east of the EL.  Gold mineralisation at Cowarra is hosted by sulphide-rich lodes developed within a prominent shear structure that can be traced along strike for over 17km.

In the Cowarra area, alluvial gold discoveries in the 1860s led to small scale mining by a number of individuals and syndicates, which in total produced around 50,000 ounces of gold up to 1921.  BHP operated a 4-level underground mine on the Victoria Zone from 1935 to 1942 (closed due to labour shortages), producing almost 15,000 ounces of gold from 55,000 tonnes of high-grade ore (average 8.5 g/t Au).  Horizon Resources re-opened the BHP mine in 1984 and produced an extra 19,000 ounces of gold from 95,000 tonnes of ore (average 6.3 g/t Au) from underground and small open cut mines up until closure in 1988.

Capital Mining acquired the EL in 2009 and completed geological mapping and sampling programs.  Mineral resource estimation was completed in October 2009, returning total Inferred Resources of around 500,000 tonnes at an average grade of 2.3 g/t Au.  Subsequent to the mineral resource estimation, Capital completed five diamond drillholes, two each on the Cowarra and Princess zones and one on the Ambassador zone.

The Victoria zone remains open along strike to the north and down-dip.  Several other nearby zones also hold potential for mineral resources, including the Princess, Democrat, Prime Minister and Vanderbilt zones.  These deposits are priority targets for the Commissioners/Capital JV and drilling programs are planned.

EL5939 also contains exploration targets at Back Creek (gold anomaly in soils), Firestone Ridge (gold in rock chips) and the JMT prospect (gold anomalies in stream sediments and soils).  Follow-up exploration programs will be undertaken on these prospects to define drilling targets.

Dalton Project
The location of the Dalton Project is around the town of Dalton, 50km north of Canberra, 30km north east of Yass. The Company sees this project as potentially an early small scale open cut operation.

Mineralisation is hosted in Ordovician deep water marine metasediments of the Kenyu Formation, which have been intruded by the Silurian Wyangala Batholith, and overlain by Silurian shallow water marine volcanics.

There are three lines of historic gold workings in the area. Historic workings north east of the Dalton townsite, the "Red Mine/Coronation Line", includes the Coronation Mine, which is reported as having several en echelon lodes, with best assays over 0.3m of 140ppm Au and 10ppm Ag. There were Levels at 10m and 20m (No.2 shaft), and 16m and 36m (No.1 shaft), mined in the 1930s.

Historic workings in the Dalton town area, the "Dalton/Big Mine Line", includes the Dalton Mine, with a best reported assay of 51.6g/t Au. Prospecting to the north reportedly indicated anomalous gold over widths of 12-18m (possibly a stockwork).

The Dalton and Coronation groups of workings are associated with one major structural trend which is at least 6km long. Much of this trend is covered by recent alluvium and this represents a hitherto unexplored target.

In the area North West of Dalton townsite, the "Jerrawa Line", has reported production of 150oz but is incomplete. A brecciated quartz zone 1.5m wide extends over 500m, with rock chips to 1.3m at 2.8ppm Au, 13ppm Ag and 280ppm As.

The Dalton line has not been explored by modern methods, and will be Commissioners Gold Ltd's first target. Exploration methods will include trenching and sampling of historic workings, soil surveys, and drilling.

Muttama Project
The Muttama Project, extends southwards for 17km from 15km east of Cootamundra, to 5km east of Muttama. Cootamundra is located 110km west of Dalton, and 120km northwest of Canberra. Historic workings on the north end of the tenement are part of the old Cullinga Gold Field, and those at the south end of the tenement are part of the Muttama Gold Field.

There are two main lines of historic workings on the tenement, which are approximately north trending and sub-parallel, 4 km apart.

The western line of workings, the Muttama West Line, are around the north trending thrust faulted contact between the Ordovician Jindalee Group deep marine metasediments, and the Silurian Blowering Formation felsic volcaniclastics to the east. The tenement covers 17km of this structure, which is the same structure associated with Christmas Gift (at the north end) and Booths Reward (at the south end). The nearby Christmas Gift has "recorded production of 37,000oz", and is reported as having a "non-JORC compliant resource estimate of 144,000t at 4.6g/t". Just to the south of Christmas Gift, within Commissioners Gold Ltd's project area, the most significant old working is the Democrat Mine, but no production records have been located. At the south end of the Muttama West Line are the Muttama Reef workings, which strike north-south, and dip steeply westward. This group of workings, together with the Excelsior and Chance Reefs, and the Booths Reward Gold Mines extend over a length of 11km. Twelve lines of reef had been opened in this southern area by 1882.

The second, eastern line of workings, the Muttama East Line, is on or about the north trending Coolac-Narromine Suture. The structure is the thrust faulted contact between the Silurian volcaniclastics of the Blowering Formation, and an intrusive ophiolite of the Silurian Honeysuckle Beds. On the Muttama East Line, the most significant working is the Collis and Petersons Mine, where rich patches of gold were found in a thin quartz vein.