Gold Fields

Darlot continues to strive for LoM extension beyond a one-year plan and is balancing near-term mine production and cash-flow with the assessment of exploration opportunities. During the year, the surface and underground exploration strategy, process and methodologies were reviewed and a number of new initiatives were implemented. Work commenced with the development and construction of an integrated 3D geological structure model for the mine and broader tenement areas to define the major regional structural damage zones and fault architecture that is a controlling factor in mineralisation. This was supplemented with a resampling programme of all historical drill hole residue samples to compile a Darlot Gold Mine Australia Region (continued) detailed geochemical multi-element map combined with hyper spectral analyses. This was used to determine regional metamorphism trends, hydrothermal fluid vectors and distinguish mafic lithologies to identify high potential ore forming areas and targets.

Sustained mining and extensions to the underground Lords South Lower (LSL) area were achieved, which was brought into full production in 2016, while ongoing extensional and conversion drilling at the Centenary Oval ore body delivered an initial Indicated Mineral Resource. In late 2016, acquisition of a detailed surface 3D seismic programme commenced at Darlot within a 1km radius of the existing mine used to generate a 3D seismic cube to map out potential geological structures that could have played a role in ore deposit placement. The emphasis here is on assessing near mine targets and the potential for a Centenary Depth Analogue (CDA), which is viewed as a potential replication of the ore body mined in the Centenary Deposit.

The exploration budget increased to A$11.0m in 2016 (A$9.6m 2015). Exploration activities are focused on both underground and surface prospecting and assessing and converting extensional and lease endowment opportunities to extend Darlot’s life.