Projects

Action at Maude Gold Mine

Overview

The SML Corporation is a major tenement holder in eastern Victoria, Australia with three Exploration Licences and one Mining Lease covering a total of 246 square kilometres. During the last few years, the Company has focused on exploration programmes aimed at discovering economic deposits and enhancing existing resources located within the granted mining tenement.

SML Tenements and Prospects Location

SMLC Tenements Map revised 2014

During 2014, the Company renewed its Glen Will Sunnyside (MIN 4921) licence to 13 May 2019, Merrimac (EL 3916) to 13 May 2016 and Omeo Shear Zone (EL 4717) to 28 January 2019.

Rationalisation of Holdings

The Company also reduced its exploration area for Omeo Shear Zone (EL 4717) ) from 420 square kilometres to 146 square kilometres to bring more focus on the area immediately south of the town of Omeo that has greater prospects. The decision to reduce the area is consistent with the Company’s philosophy of not just holding on to the tenement ground but to test and decide as expediently as possible its potential.

Also in 2014, the Company analysed the results of the infill stream sediment sampling for Banimboola (EL5300). Whilst there appears to be a congregation of higher gold values in the northeast corner, with possibly a source from outside of the EL, the anomalism is not high enough to discount it as being within background levels. Copper highs are clustered in the south of the EL, within the Banimboola pluton and once again do not exceed background levels. Due to the disappointing results of the geochemical survey conducted over the tenement and the discounting of the presence of an outcropping or near sub-surface mineralised porphyry system, the Company has surrendered its exploration license EL5300 in July 2014 to minimise future expenditure.

Key Statistics

Resources

Resource Statement 2014

Glen Wills & Sunnyside Goldfields

  INDICATED   INFERRED   TOTAL
  Jun 2012 Jun 2013   Jun 2012 Jun 2013   Jun 2012 Jun 2013
Tonnes 112,000 106,600 Tonnes 495,000 602,900 Tonnes 607,700 709,500
Grade 5.6 6.0 Grade 8.5 7.6 Grade 7.9 7.4
Oz Au 20,200 20,500 Oz Au 134,700 147,500 Oz Au 154,900 168,800
Oz Ag - - Oz Ag 105,800 115,500 Oz Ag 105,800 115,800

The Mineral Resources for Glen Wills and Sunnyside are based upon information compiled by Mr. Murray Hutton (GEOS Mining Pty Ltd)

The Mineral Resources for Glen Wills Tailings are based upon information compiled by Mr. Peter de Vries MAIMM (G.E.M.S. Pty Ltd)

Mr Hutton and Mr de Vries are Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Both these gentlemen consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Glen Wills

Tenement MIN 4921
Project Glen Wills – Sunnyside
Location 120km from Bairnsdale, Vic
Granted 18 Jan 1990
Expiry 13 May 2019
Area 2.4 km2
Deposits? Gold
Holder Mt Wills Gold Mines Pty Limited
Interest 100%
Status – 2012 Glen Wills completed drill holes
Twenty-three Diamond drill holes – 7,076 metres, 11 from Underground – 3,294 metres, 12 from Surface – 3,782 metres
Status 2012 Sunnyside completed Drill Holes – 7 Diamond Drill Holes – 1,214 metres
Status 2013 Maude Gold Mine 3 holes drilled from underground – 1042.4 metres
Status 2014 Centre County completed Drill Holes – 2 Diamond Drill holes – 1,141 metres
Centre County Prospect

Following the approval by the Government Regulators (DEPI) for the Company’s vegitation off-set provisions involved with the Centre County Exploration program, the Company commenced exploratory drilling on 14 October 2013. Diamond drilling at Centre Court Prospect was targeted to test the previously unexplored area between the Glen Wills and Sunnyside Goldfields for evidence of continual structures that may have the potential to host economic gold mineralisation.

All the diamond drill holes intersected multiple narrow altered zones containing quartz veinlets and variable amounts of arsenopyrite and pyrite. The results, whilst of a mixed nature, appear to support the theory that anomalous gold bearing zones do exist within the Centre County area and that the Glen Wills and Sunnyside goldfields are in fact southern and northern ends respectively of a much larger mineralised structure which extends in excess of 5 kilometres in struke. Previous drilling at depth below the main historic mines at Glen Wills and Sunnyside has failed to close this structure off at depth.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Murray Hutton, who is a Member of the Australian Institute of Geoscientists. Mr Hutton is employed by Geos Mining and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Merrimac

Tenement EL 3916
Project Merrimac
Location It surrounds the Glen Wills – Sunnyside project
Granted 13 May 1996
Expiry 13 May 2014
Area 47.0 km2
Deposits Gold
Holder Mt Wills Gold Mines Pty Limited
Interest 100%
Status 2014 – 2 Diamond drill holes 1,141 metres.

Due to the shape of the Company’s existing Mining Licence (MIN4921) several of the Centre Country Prospect’s diamond drill holes (CCDH001 & CCDH002) were collared within the Exploration Licence. The results of these holes are included in the previous section (Glen Wills – Sunnyside). Surface mapping of historic working and structures within the area of the Centre Country was also undertaken.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Murray Hutton, who is a Member of the Australian Institute of Geoscientists. Mr Hutton is employed by Geos Mining and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Omeo

Tenement EL 4717
Project Omeo Shear Zone
Location Large tenement covers the Benambra – Omeo districts, centred 25km southeast of Glen Wills
Granted 28 Jan 2009
Expiry 28 Jan 2019
Area 146 km2
Deposits Gold and Tin
Holder Mitta Omeo Metals Pty Ltd
Interest 100%
Status 2012 Comstock Prospect – Soil Sampling program, Forsyth Prospect – 3 Diamond drill holes – 466 metre, 1Hole (FS11-01) significant mineralisation
Status 2013 Forsyth Prospect – 2 Diamond drill holes – The drilling confirmed the presence of at least two solver rich mineralised structures also containing highly anomalous gold values.

Between 14 April and 11 May 2014 a Dipole Multi Polar Distance IP survey was completed over the central portion of the Comstock Prospect. A total of 7.72 line kilometres were completed with 27 IP points recorded. Three anomalous areas were identified with the strongest two correlating to areas of know surface mineralisation.

Testing of the targets is planned. Should future drilling confirm the presence of gold/silver sulphide mineralisation, the survey method could become a useful tool to test further additional targets not only at Comstock Prospect but at the Forsyth Prospect too where high grade gold and silver mineralisation has been previously detected in drilling.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Murray Hutton, who is a Member of the Australian Institute of Geoscientists. Mr Hutton is employed by Geos Mining and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Granite Flat

Tenement EL 4744
Project Granite Flat
Location Located at Omeo structural zone of the Lachlan Fold Belt in eastern Victoria
Granted 29 November 2006
Expiry 28 November 2016
Area 51 km2
Deposits Gold and Copper
Holder Mitta Omeo Metals Pty Ltd
Interest 100%
Status Tested the intersection of the structure where an area of strong non-magnetic phase may be associated with alteration and gold-copper mineralisation

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Murray Hutton, who is a Member of the Australian Institute of Geoscientists. Mr Hutton is employed by Geos Mining and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

SML Corporation Structure

SLMC Corporate Structure - 27 May 2013

×