EL25429 Jervois Project - geoscience.nt.gov.au

Kentor Minerals (NT) Pty. Ltd.

(a wholly owned subsidiary of KENTOR GOLD Ltd.)

EL25429

Jervois Project

Annual Report

for the reporting period

2 February 2012 to 1 February 2013

Project Name: Jervois

Map Sheets: Hukkitta SF53-11, 1:250,000

Commodities: Copper, Silver, Lead, Zinc

Licensee: Jinka Minerals Ltd.

Author: R. Lennartz

Date: March 2013

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CONTENTS

SUMMARY ........................................................................................................................................ iii

1.0 INTRODUCTION .................................................................................................................... 1

2.0 LOCATION and ACCESS....................................................................................................... 1

3.0 TENURE .................................................................................................................................. 3

4.0 GEOLOGY............................................................................................................................... 5

5.0 PREVIOUS EXPLORATION ................................................................................................. 7

6.0 WORK DONE DURING THE YEAR .................................................................................... 7

6.2 DRILLING ............................................................................................................................ 7 6.1.2 Diamond ..................................................................................................................... 7 6.1.3 Reverse Circulation .................................................................................................... 8

6.3 Regional Exploration ............................................................................................................. 9 6.4 Significant Drill Intercepts .................................................................................................. 11

7.0 CONCLUSION ...................................................................................................................... 12

BIBLIOGRAPHY .............................................................................................................................. 12

APPENDIX 1 Drill hole data and all geological logging on accompanying CD. ........................ 13

APPENDIX 2 Structural Report is on the accompanying CD ..................................................... 14

APPENDIX 3 Resource Report is on the accompanying CD. ..................................................... 15

APPENDIX 4 Chubko Exploration area results are on accompanying CD ................................. 16

APPENDIX 5 Expenditure details are on accompanying CD ...................................................... 17

Figure 1. Jervois Project - EL25429 Location plan .......................................................................... 2 Figure 2. Jervois Project - EL25429 Boundary ................................................................................. 4

Figure 3. Jervois Project - Regional Geology ................................................................................... 6 Figure 4. Jervois Project - Reward/Marshall drill hole location ....................................................... 8 Figure 5. Jervois Project - Chubko Prospect exploration mapping ................................................. 10

Table 1. Jervois 2012 Drilling - Significant Intercepts. ................................................................. 11

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SUMMARY

Kentor Gold Limited, a Brisbane based company, purchased Jinka Minerals and all its assets in

early 2011 from Reward Minerals Limited.

During the reporting year, the Operating Company was changed to Kentor Minerals (NT) Pty. Ltd.

All tenements reported on are held by Jinka Minerals Ltd.

Annual Reporting of activities conducted on Exploration Licence 25429 is reported by Kentor

Minerals (NT) who is the authorized operator of the tenement.

Group reporting of all the Mineral Leases covered by EL25429 was approved by the Mineral and

Energy Division of the NT Department of Mines and Energy on 15th October 2012.

Activities undertaken by Kentor Minerals (NT) Pty. Ltd included:

16 hole Diamond and Reverse Circulation drilling program – 5,399.10 metres.

A new area designated as the Ghubko Prospect Area was identified and preliminary field

activities were undertaken on this area

Re-logging of historical core for RQD, Recovery, Magnetic Susceptibility

Structural interpretation

Resource Upgrade

Expenditure on EL25429 for the year is estimated at approximately $778,023.

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1.0 INTRODUCTION

Exploration Licence 25429 "Jervois” is located in the Proterozoic terrain of the Arunta Inlier. The

tenement covers the gossanous outcrop of the Jervois Mine and its extensions along strike. EL

25429 has a total area of approximately 110.9km2 (35 blocks).

MIM Exploration Pty Ltd (MIMEX) applied for the original tenement (EL10149) in September

1999 and was both manager and operator of the subsequent Joint Venture project. Exploration

conducted by MIMEX focused on finding structurally controlled high grade Mt Isa-style copper and

Broken Hill-style base metals mineralisation, as well as Fe-oxide associated copper-gold

mineralisation. Following the termination of the joint venture, the tenement reverted to Solbec

Pharmaceuticals as per the JV agreement.

EL25429 incorporates mineral leases and mineral claims (MC’s S13-S18, ML’s S10, S16, S17,

S23, S51-S57, S61, S62 and S90) and the water holdings over Lake Petrocarb (HLD’s S19-S21).

Exploration and development on EL25429 incorporates a lot of the work undertaken on the MC’s

and ML’s however only the work undertaken on EL25429 has been included in this report.

The purpose of this report is to detail exploration conducted by Kentor Minerals (NT) Pty. Ltd

within EL 25429 during the year ended 1 February 2012.

Sixteen drill holes for a total of 5,399.1 metres were completed on EL25429.

Expenditure for the year is estimated at $778,023 against a covenant of $32,500.

2.0 LOCATION and ACCESS

The Jervois Project is located 380 kilometres north east of Alice Springs on the Huckitta 1:250,000

map sheet (SF53 -11), and surrounds the mineral leases which cover the gossanous outcrop of the

Jervois Mine and its extensions (See Figure 1).

Access is via the Stuart and Plenty Highways to the Lucy Creek Station Road, with the tenement

located approximately 20km north of this turn off. Historical exploration and mine tracks, as well as

limited station tracks provide local access throughout the tenement which is located over a portion

of the Jervois Pastoral Lease.

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Figure 1. Jervois Project - EL25429 Location plan

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3.0 TENURE

EL25429 was granted on 2nd February 2007. The tenements were subsequently transferred to M.

Ruane on the 19th July 1999, who applied for a deferment of relinquishment until 2nd October

2000, which was approved by the DPIFM. M. Ruane then entered into an Option to Acquire

agreement with Britannia Gold NL.

On 5th August 1999, M.I.M. Exploration Pty Ltd entered into a Joint Venture agreement with

Britannia Gold NL, agreeing to act as manager and operator of the Jervois Project.

MIM withdrew from the joint venture in late May 2002. The tenement was subsequently transferred

to M. Ruane and in 2004 was transferred to Reward Minerals Limited.

In November 2009 the leases were transferred to Jinka Minerals Ltd, a wholly owned subsidiary of

Reward Minerals Ltd.

In early 2010 Jinka Minerals Ltd. was purchased by Kentor Gold Ltd. and is now a wholly owned

subsidiary of Kentor Gold Ltd.

The tenements remain as Jinka Minerals Ltd. holdings and are operated by Kentor Minerals (NT)

Pty. Ltd until such time that they will be transferred to the operating company.

Figure 2. represents a plan of the tenement layout at the Jervois Project.

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Figure 2. Jervois Project - EL25429 Boundary

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4.0 GEOLOGY

EL25429 lies on the Huckitta 1: 250 000 map sheet (SF 53-11), for which geological notes are

available. The tenement is located mainly within the Palaeo-Proterozoic Bonya Schist on the

northeastern boundary of the Arunta Orogenic Domain. The Arunta Orogenic Domain in the north

western part of the tenement is overlain unconformably by Neo-Proterozoic sediments of the

Georgina Basin.

The prospective lithologies within the tenement have been identified as the Bonya Schist, Division

2 of Arunta Orogenic Domain (Freeman, 1986). This unit is made up of quartzo- feldspathic

muscovite and sericite schists, ranging from pelitic to psammo-pelitic in composition, and has local

occurrences of cordierite, sillimanite, garnet and andalusite. The mine sequence, in addition to these

lithologies, also contains chlorite schist, garnet ± magnetite, quartzite, magnetite quartzite, calc-

silicates, and impure marbles.

The topography of the tenement is dominated by the Jervois Range, composed of Georgina Basin

sediments to the west, and the "J Range," comprised of Bonya Schist, and includes the mine

sequence. Peters et al (1985) recognised three deformation periods in the Jervois area, with

refolding of the mine sequence resulting in the "J" shape of the Bonya Schist outcrop in the

tenement area. Mineralisation in the area occurs mostly as stratiform/bound copper and/or lead-

silver-zinc associated with variable garnet and calc- silicate alteration, although tungsten occurs as

disseminated scheelite in calc-silicate rocks.

In brief, Kentor Minerals (NT) regards the copper-lead-zinc mineralisation as stratigraphic in

nature, probably relating to the discharge of base metal-rich fluids in association with volcanism or

metamorphism or dewatering of the underlying rocks at a particular time in the geological history of

the area. In other words it occurred within a single stratigraphic horizon and is near-

contemporaneous with the sediments that enclose it. In detail there may be several closely-spaced

mineralised zones forming a package at more or less the same stratigraphic horizon representing

episodic emission of fluids over a short period of time. In addition there is almost certainly a

repetition of lithological units due to deformation, with concomitant deformation of the enclosed

mineralised horizons. For example, we interpret the three mineralised zones commonly intersected

during drilling in the Marshall-Reward area as being the same horizon, being the three limbs of an

isoclinal fold. In contrast to the considerable areal extent of the copper mineralisation, the

distribution of lead and zinc is spatially restricted at Jervois and these metals may have accumulated

near points of discharge of metalliferous fluids.

In the Bellbird area mesoscopic and macroscopic folding have complicated the geometry of the

stratigraphic sequence. Consequently the mineralised horizon is not everywhere easy to locate.

Furthermore an interpreted fault in the Rockface area has apparently displaced the succession

causing a substantial geological mismatch across the fault zone.

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Figure 3. Jervois Project - Regional Geology

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5.0 PREVIOUS EXPLORATION

Following the discovery of the Jervois mineralisation in the 1920s, some small-scale mining of the

oxides took place and concentrates were transported to Mt Isa for treatment. Since that time, there

has been episodic exploration (including one attempted mining operation) by a succession of

companies. These have been described in some detail in previous annual reports (eg Cranley 2003)

and in the Reward prospectus, so they are merely listed here:

1961 – 1965 New Consolidated Goldfields (Australasia) Pty Ltd

1969 – 1973 Petrocarb Mineral exploration (SA) Pty Ltd

1973 – 1974 Petrocarb Joint Venture with Union Corporation (Australia) Pty Ltd

1980 – 1983 Plenty River Mining Company NT Limited 1983 - 1984 Plenty River Mining -

Anaconda Australia Inc. Joint Venture

1991 – 1996 Plenty River Mining – Poseidon Exploration Limited Joint Venture

1997 – 1999 Britannia Gold NL

1999 – 2002 MIM Exploration Pty Ltd

2010 - 2010 Reward Minerals Down-hole MMR (Magneto Metric Resistivity)

2011 - Kentor Minerals (NT). Resource Drilling

6.0 WORK DONE DURING THE YEAR

6.2 DRILLING

Although most of the drilling activities were undertaken on the ML’s and MC’s on the Jervois

Project area, there was significant drilling undertaken on EL25429 adjacent to the ML’s and

MC’s. 16 drill holes were located in EL25429. One of those was RJ204, which had a wedged

hole (RJ204W1), was drilled to intersect the Reward mineralisation and to further develop an

understanding of the resource.

Sixteen holes were drilled on EL25429 and these included both diamond and Reverse

Circulation holes. The complete dataset for the drilling program has been included in this annual

report.

A total of 5,399.1 metres of drilling was undertaken on the tenement.

Specific drill holes designed to supply material for metallurgical testing have not been included

in this report as they have been reported in the Annual Report covering the ML’s and MC’s.

6.1.2 Diamond

Based on drilling results from the 2012 program on the Jervois tenements, a significant

follow-up program was designed to increase the resource and to upgrade the status of the

resource.

A total of 1,583.1 metres of NQ diamond drilling was conducted on EL25429 during the

reporting period.

This phase of drilling enabled a good exposure of core to log most geological and structural

parameters which can be used at a later stage for interpretation purposes.

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6.1.3 Reverse Circulation

To enable a cost effective upgrade of the resource, RC drilling was utilized extensively over

the tenement.

A total of 3,816.0 metres of Reverse Circulation drilling was undertaken on the Jervois

Project EL25429 in the reporting period.

Figure 4 indicates the drill hole locations for the 2012 drilling program at the Jervois Project

and the holes drilled on EL24529.

All data related to drilling and geological logging is presented in APPENDIX 1 on the

accompanying CD as digital data accompanying this report.

Figure 4. Jervois Project - Reward/Marshall drill hole location

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6.3 Regional Exploration

A new exploration zone, preliminary mapped and surveyed with NitonXRF, shows significant

potential of further exploration.

The new area is represented by mica and mica-andalusite-cordierite schist, interbedded with

meta-sandstone/pellite. The south-east and central part is intruded by small bodies and dykes of

dolerite/diabase. Quartzite zones outcrop on the south-east flank. All rocks are tightly folded,

with the main strike of 20-50 degrees repeated in the south-east part of the main Jervois

structure.

There are three types of Quartz veining:

1) lensed veins of white barren quartz, with thickness to the first metres; rose or grey

coloured quartz with blasted texture, solution cavities, ore veinlets and dissemination.

Thickness of veins from 0.5 to 50 cm. Strikes – approx. 2 metres. Often series of

echeloned veins observed

2) two first types are concordant with the host rocks strike. Sometimes at the boundaries of

white, rose or grey type of quartz are developed

3) the third type represented by cross cutting quartz veins. Usually they are grey with

thickness to 20 cm, and strike to first meters. Occasionally veinlets and dissemination of

malachite are observed.

Copper mineralisation was identified within three main zones striking WSW – ENE.

At the northern zone (pts 045-046,055,056,075-076) ore minerals are represented mostly by

malachite and occasionally by chalcocite, in veinlets and disseminations. Sometimes in the

eastern (045-046) and central (075-076) part of the zone, secondary lead (plumbojarosite), zinc

and arsenic (scorodite) mineralised veins occur. In the host rocks, high grade zinc, and lead and,

to a lesser extent, copper is indicated. This type probably indicates the upper level of

mineralisation, comparatively to the Bellbird’s ore.

Mineralisation of the Central zone (pts 0.59, 061 - 064,073-074) hosted in quartzite and quartz

veins are represented by malachite grains, rarely as veinlets. The area is weakly outcropped, and

the area is dominated mostly broad quartz veins and silicified rocks that are not strongly

weathered from the surface.

Mineralisation of the third – Southern zone (pts 066-071) is identified in lensed quartz veins as

dissemination and veinlets of malachite and haematite (limonite). The grade of zinc and lead is

not high there. In the middle of this zone extremely high grade gold was identified in quartz

veining (pt. 068, 50-56 ppm). Gold is accompanied by high levels of Bismuth 0.6-0.95 %, and

some rising arsenic levels (53-130 ppm). These are typical hydrothermal association, and may

indicate a new type of mineralisation within Jervois property.

The mineralisation of the new area is presented by the upper part of copper mineralization, with

high grades of lead and zinc, and rare for the Jervois - gold-bismuth mineralisation. It suggests

mineralised potential of the main property to more, than 1 sq. km. To the NW it is limited by the

Rockface Prospect, other sides are open.

To complete the study area is proposed to undertake a soil sample program on a 100 x 20 m grid,

for more accurate identification of multi element anomalies, and estimation of the lode’s dip.

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Figure 5. Jervois Project - Chubko Prospect exploration mapping

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6.4 Significant Drill Intercepts

Table 1. Jervois 2012 Drilling - Significant Intercepts.

Hole ID

From (m)

To (m)

Interval (m)

EHTW* (m)

Cu %

Pb %

Zn %

Ag g/t

Au g/t

RJ204 485 486 1.0 0.62 0.7 0.0 0.0 7.1 0.06

500 501 1.0 0.62 0.9 0.0 0.1 5.8 0.27

502 510 8.0 4.93 4.8 0.2 0.6 62.1 0.35

RJ204W1 505.8 507 1.2 0.77 1.4 0.0 0.0 3.5 0.01

509 518.05 9.05 5.82 4.9 0.3 0.4 66.2 1.22

518.05 520 1.95 1.28 0.2 0.0 0.3 3.0 2.45

RJ209 12 14 2 1.5 0 0.0 0.0 0.5 0.97

106 112 6 5.0 0.3 0.1 0.2 3.9 0.02

RJ210 150 154 4 3.3 0.5 0.0 0.1 4.6 0.05

160 164 4 3.3 0.0 0.9 0.1 3.6 0.00

RJ212 162 180 18 13.0 0.3 0.0 0.0 2.8 0.01

RJ213 148 152 4 2.7 0.9 0.1 0.2 18.6 0.11

160 164 4 2.7 2.6 0.6 3.1 36.5 0.10

RJ232 309.1 323 13.9 10.49 1.63 0.22 0.82 16.15 0.07

337.3 338 0.70 0.53 1.56 3.61 2.75 400 0.5

418.35 440 21.65 16.34 0.87 0.01 0.03 11.18 0.08

RJ233 409.95 417 7.05 5.84 0.98 0.03 0.07 9.7 0.06

428.4 429.11 0.71 0.60 3.74 0.31 0.19 71.1 0.07

457.61 470.1 12.49 10.95 0.51 0.01 0.03 3.51 0.01

RJ236 397 399 2.0 1.53 0.44 0.25 0.15 19.75 0.19

419 421 2.0 1.53 1.87 0.02 0.07 12.53 0.62

433 437.55 4.55 3.68 3.87 0.09 0.13 44..55 1.61

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7.0 CONCLUSION

Resource modeling based on drill hole results from the 2012 program produced a 13% increase in

contained copper to 170,000 tonnes at the Jervois Project. A 20% increase in contained silver to

11.6 Moz, and an additional exploration target potential of 50,000 to 1000,000 tonnes of copper was

a result of the successful campaign.

Metallurgical and feasibility studies into the viability of the project have been on-going for the

reporting period and will continue into the next reporting period.

Significant field work on EL25429 resulted in the discovery of the “Chubko Prospect” which will

be the focus of ground exploration activities during the 2013 field season.

The total resource at Jervois has increased to:

13.5 Mt @ 1.3% copper and 25.8 g/t silver containing 170,416 tonnes of copper and 11.6 million

ounces of silver, based on a cut-off grade of 0.5% copper.

A maiden gold resource of 69,000 ozs has been identified and will be expanded on into 2013.

BIBLIOGRAPHY

Cranley, N J, 2003: Technical Report EL 9518 “Jervois” Northern Territory; Annual Report for the

year ending 2nd October 2003





Thom, R, 2004: Technical Report EL 9518 “Jervois” Northern Territory; Annual Report for the


Meyers, J., 2004: Sub-audio magnetic (SAM) geophysical technology for mineral exploration

and subsurface regolith mapping. CRC LEME, Curtin University of Technology

[email protected]

mailto:[email protected]

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APPENDIX 1 Drill hole data and all geological logging on accompanying CD.

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APPENDIX 2 Structural Report is on the accompanying CD

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APPENDIX 3 Resource Report is on the accompanying CD.

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APPENDIX 4 Chubko Exploration area results are on accompanying CD

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APPENDIX 5 Expenditure details are on accompanying CD

Documents

EL25429 Jervois Project - geoscience.nt.gov.au