The Discovery and Evaluation of the Vera-Nancy Deposit, North Queensland

Discovery of the Vera-Nancy deposit in late-1995 followed 12 years of active exploration in and around the Pajingo Epithermal System, an andesite hosted veinfield covering an area of 150 square kilometres at the northern end of the Devono-Carboniferous Drummond Basin in North Queensland. Early exploration targeted open-pittable resources in the numerous auriferous veins and it was not until 1994 that exploration focus shifted to drilling to depths below about 100 metres from surface, which resulted in the Vera-Nancy discovery. That deeper drilling process is still at a very early stage of coverage of the epithermal system as a whole and substantial potential exists for additional discoveries.Drill-out of Vera-Nancy has to-date established a gold resource in excess of 1.4 million ounces. Mine development is proceeding via a twin decline system with first stoped production scheduled for August 1997.