Nassau Exploration

District Exploration, Exploration Methodology & Deposit Type/Model

Presentation Outline

2005 Accomplishments
Orogenic Gold Deposits
Guiana Shield Deposits
District Exploration Methodology
Nassau District Exploration
PK-69, PK-29 & Hoefyster
PK-73, PK-37 & PK-81
Morisi Creek
Tolomu
Witlage & Bamboo Ck
Summary

South America Exploration Meeting – February 27, 2006 Lima

2005 Accomplishments
District Exploration, Exploration Methodology & Deposit Type/Model

 Key personnel at the auger bit (Ryan Kambel & Faisel Idoe), porkknocker and field
mapping (Joel Melgar & Ivan Cabrera), gradient and dipole geophysics (Bernard
Lubbe & Luis Dias), RC drilling (Juan Pilco, Osman Dali & Carlos Blank) and
reconnaissance sampling (Wallace Araujo, Raimundo Olivera, Carliñhos Rezende)

 Discovery of the Maraba and Shoot 112 zones

 Completion of the first-pass geochemical evaluation of the Merian Trend

 Success of the electrical geophysical surveys and geological modelling

 Extent of work completed

 Identification of three high-quality prospects and a pipeline of emerging targets

Orogenic Gold Systems

Sub – SEAL
Greenschist
s1 s1
Dolerite
Mid - TRAP
Greenschist
Sedimentary Sequence
Volcanic Rock

FLUID PATHWAY
Amphibolite
Metamorphic Fluid
Distal Granite
Magmatic II SOURCE
Fluid
Granulite
Metamorphic Fluid

Fluid from
Granite I
Groves, 2005 Subcreted Oceanic
Crust
Fluid Heat & Sources
Fluid Pathways
Trap Sites & Seals
Compiled Critical Criteria
Guiana Shield Deposits

Regional Overview
Las Cristinas
Omai
Tassawini
Aurora
Rosebel
Camp Caiman
Amapari
Guiana Shield Geology & Deposits

Sedimentary Greenstones Gold Prospects

Volcanic Greenstone Gold Mines
Las Cristinas (Venezuela)
• Crystallex International Corporation

• Resource: 500 Mt @ 1.17 g/t Au (18.8 M oz) & Reserve: 246 Mt @ 1.3 g/t Au (10.2 M oz)

• Lower Proterozoic volcanic-sedimentary greenstones

• Quartz + carbonate + sulphide vein zones in ductile shears + tourmaline-silica breccias

• Deep oxidation; soft saprolite to 100m depth

• Multiple deposits along shear zones

Omai (Guyana)
Exploration & Mining History for 5.1 Moz Au

• Early 1900´s: Small-scale prospectors discover alluvial and vein-hosted gold reefs and extract
115,000 Oz Au by simple hand-mining methods.

• 1985: Golden Star Resources then Golden Star with Cambior commence systematic
exploration and discover three mineralised zones:

Fennell Zone: quartz-diorite intrusive plug with 400 metre diameter, with shallow-dipping quartz
carbonate veins ranging in width from cm to 1.5 metre carrying free gold. The mineralised veins
may extend from the intrusion for several hundred metres into the surrounding volcanics

Wenit Zone: zone of auriferous mineralised sub-vertical shear zones in narrow felsic tuff unit
extending for 1.8 km
Tassawini (Guyana)
Another mineralised district?

• Another zone of extensive and historical (and current) porkknocker mining activity

• The potential of the Tassawini area was recognized by BHP geologists and brought to the
attention of Stratagold, who are currently exploring the immediate prospect area.

• Zone of folded and deformed greenstone-hosted shear-related quartz veins, with at least four
mineralised zones identified to date.

• Rocks and mineralisation are considered amphibolite facies (or upper green schist? OR
amphibolised?)
Tassawini – Soil Au Geochemistry
Tassawini – Drilling & Interpreted Geology
Aurora (Guyana)

• Intrusive-related system??

• Spectacular intercepts at depth:

RKD-39: 149 m @ 3.09 g/t Au (330 to 479 m)

RKD-34: 105.7 m @ 11.53 g/t Au (390 to 485.7 m)

Aurora
Multiple zones of mineralisation with coincident IP anomalies
Aurora
Vertical pipe 250 x 250 metres and > 300 metres depth
Rosebel (Suriname)
Protracted Exploration History

• 1880´s: Small-scale prospectors discover alluvial and vein-hosted gold reefs

• 1970´s: Placer conducted a soil survey (400 x 25 metre grid) for 16,600 samples defining the
Mayo, Rosebel and Royal Hill areas. Drilling identified a resource of 9.4 Mt @ 2.28 g/t Au

• Early 1980´s: Grassalco identified an additional 3.5 Mt @ 2.02 g/t Au at Royal Hill

• 1992 to 2004: Goldenstar & Cambior: Multiple, staggered drilling campaigns and careful
reinterpretation phases over more than 12 years to mining.

• Total Resource: 7.2 Moz Au

Rosebel - Geology
• Rosebel group of at least six seperate deposits
Rosebel – Deposit Geology
• Vertical shear zones: Pay Caro-East Pay Caro (strong linear saprolite anomaly covering 3.5 km x
280 m @ +500 ppb Au)

• Stratigraphic contacts: Royal Hill & Mayo (weak saprolite Au anomalies with spotty high values)

Royal
Hill

Pay
Caro
Mayo
Mayo

East
Pay Caro
Camp Caiman (French Guiana)
12.3 Mt @ 2.8 g/t Au for 1.1 Moz Au

• Area discovered following-up a BRGM soil As anomaly.

• Gold mineralisation associated with zones of sulphides and grey quartz veins hosted in
northwest-trending clastic metasedimentary and metavolcanic rocks.

• Mineralisation is localised in two zones, the Scout Zone and Zone CC-88:

Scout Zone: structurally controlled zones up to 8 metres wide, steep northerly-dip and extend
vertcally to 250 metres;

Zone CC-88: is a structural and stratigraphic-contolled zone varying in width from 25 to 85 metres
with moderate southeast plunge. Mineralisation has been intersected at 250 metres depth and is
open at depth.

• Camp Caiman area has numerous untested geochemical anomalies

Camp Caiman - Geology
Amapari (Brazil)
• 2.8 Moz Au in at least three seperate deposits

• Hosted in the Vila Nova Greenstone

Belt (Williams Formation – Fe &
Carbonate-rich chemical rocks)

• Soil sampling by Anglogold in 1994

discovered the deposits in a zone of
Active porkknocker workings

• Deposits have affinities to skarn

systems related to hydrothermal
activity along a shear zone

• Au associated with zones of

silicification, carbonate-alteration and
sulphides (po-py)
Amapari – Section Au Outline
District Exploration Methodology
• Multi-Disciplinary Exploration Approach

 Review of all available data and imagery (Quickbird, Landsat, DTM, Geophysics)
 Regional BLEG Sampling & Rock-Chip Sampling
 Ridge and Spur Saprolite (or Soil) Sampling & Rock-Chip Sampling
 Grid-based Infill Saprolite Sampling & Rock-Chip Sampling
 Geoogical Mapping and Rock-Chip Sampling
 Gradient-Array Chargeability & Resisitivity
 Dipole-Pole IP Chargeability & Resistivity
 Drill Testing

Ongoing Interpretation At All Stages

Data & Literature Review
Use of Imagery

1 2 3

Bamboo Creek Images

1. Quickbird 321
2. Geology
3. DTM
4. Landsat 543
5. Landsat 541 on Spot
4 5
 Regional BLEG Drainage Sampling

First-pass BLEG drainage sampling

Use Ag:Au and multi-elements to

Discriminate primary from placer
Au sources
Geochemical Sampling at Nassau
First-Pass Ridge & Spur Auger Saprolite Sampling

 Ridge and spur traverses commonly separated by 500 to 1,250 meters

with samples taken every 50 meters along-traverse.

 Shallow saprolite typically from subsurface to 0.5 meters depth (up to

3 m).

 Also sample outcropping and float rock and vein quartz

 One team can take 30 to 40 saprolite samples per day (1.5 to 2 line km)

 Used to locate Gowtu Bergi, Area 15, Shoot 112 & Maraba

Quick and effective geochemical evaluation of target areas

Ridge and Spur Au at Merian II and Maraba
Showing August 2004 Saprolite Sampling & Interpretation
Geochemical Sampling at Nassau
Follow-up Grid-based Saprolite

 Follow-up saprolite samples taken along

100 meter spaced traverses with samples
every 25 meters along-traverse.

Close-spaced sampling defines subsurface mineralization at:

Area Saprolite Anomaly Anomaly Dimension Samples

Gowtu Bergi 1.0 to 3.1 ppm Au 850 x 50 m 13
Maraba 1.1 to 10.1 ppm Au 750 x 100 m 12
Area 15 1.0 to 18.5 ppm Au 850 x 75 m 16
92 Shoot 1.2 to 2.1 ppm Au 300 x 50 m 5
MII Connection 1.1 to 6.5 ppm Au 300 x 100 m 7
Shoot 112 1.0 to 4.8 ppm Au 400 x 150 m 12
Hoefyster 1.2 to 11.2 ppm Au 250 x 50 m 5
Follow-up Saprolite Au Geochemistry
Showing January 2006 Saprolite Sampling & Interpretation
Rock-Chip Au Geochemistry
A Maraba Example

Au hosted in grey sugary-crystalline

quartz veins (1) and narrow white
crystalline quartz veins hosted in
white clay-altered siltstone (2)

1
Geological Mapping
Porkknocker sites, outcrop, subcrop, road cuttings and trenches
Follow-Up Gradient-Array Geophysics
Showing Gradient-Resistivity on Quickbird

Gradient-resistivity & chargeability

features coincident with saprolite Au
anomalies at Maraba, Gowtu Bergi,
Area 15, Shoot 112 and Maraba East

Ohm.m
Follow-Up Dipole Resistivity
Showing Gradient-Resistivity on Quickbird

Showing traces of interpreted

fold axis
Anticline
Syncline
Follow-Up Drilling
Traverse RC and/or Specific RC-Core Targeting
 Dipole Chargeability
(Merian II -112 Connection)
 Suggestion of lithologic
Chargeability
folds -
 Next break-thru?

Chargeability

Resistivity 9700N Merian II

Nassau District Exploration

 Regional Datasets

 PK-69 & Hoefyster

 PK-73, PK-37 & PK-81

 Morisi Creek

 PK-29 Area

 Tolomu

 Witlage & Bamboo Creek

Nassau Prospects
Showing Imaged Saprolite Au on Quickbird and Topography

Bamboo Creek

Witlage

Marcus
PK-69 Merian II
PK-73

Morisi Creek

Tumatu Creek

N
Au (ppm) Tolomu Merian I
NW Merian
Hoefyster Kibiri Maraba
0.04 0.1 1.0 32.1
Gradient-Resistivity
Significant Anomalies at Merian II, Maraba, Hoefyster & PK-69

Bamboo Creek

Witlage

Marcus
PK-69 Merian II
PK-73

Morisi Creek

Tumatu Creek

N
Tolomu Merian I
NW Merian
Hoefyster Kibiri Maraba
Magnetics

• Gold mineralisation in quartz veins, associated with sandstone units

and zones of dilatency (fold hinges, structural intersections)

Witlage

Hoefyster
Gowtu Bergi
Tempati

Merian I
NW Merian
N Maraba
 Nassau District Prospects

Northwest Merian

Kibri

Morisi Creek Maraba

Hoefyster
Merian II

PK-29
PK-69

PK-73 Merian I
Las Dominicanas

Tolomu

Tumatu
PK-69 & Hoefyster Gradient Resistivity
Showing porkknocker vein & vein float Au geochemistry

Ohm.m
PK-69 & Hoefyster Dipole Resistivity
Showing porkknocker vein & vein float Au geochemistry

Ohm.m
PK-69 Geological Mapping
White sugary quartz veins trending 120° and 020°
PK-73, PK-37 & PK-81 Area
Open saprolite anomaly covering 1.2 km x 300 metres at +100 ppb Au
PK-73, PK-37 & PK-81 Area
PK-73 (& Morisi Creek) - First Significant Anomalies at Southwest Merian
Morisi Creek
Robust Saprolite and Rock-Chip Au Anomaly
PK-29 Area
Strong saprolite and rock-chip anomalies
Tolomu
Mineralised grey quartz veins and an RC hole
 Nassau District Prospects
“QUALITY” PROSPECT PHASE I DRILL INVENTORY

HOEFYSTER AREA 15
HIGH
NORTHWEST MERIAN
MERIAN II
(Inventory Likely) NORTHEAST MERIAN
PK-73 SOUTH MERIAN II MARABA
PK-69
MARABA TREND
PK-29
KIBRI
TOLOMU MERIAN I

TUMATU CREEK (EVERT)

MODERATE MORISI CREEK
(Drilling Justified) WITLAGE
BAMBOO CREEK

Tempati Creek
LOW Jorka Creek
Marcus

REVIEW LAS DOMINCANAS PAKIRA

COMMENCED TUMATU CREEK (FRANKS)
OR PENDING
Back-Up Slides

 Electrical Geophysical techniques

Controlled source audio-frequency magnetotellurics (CSAMT)

Produce a primary field by a loop or a grounded bipole.

Measure the orthogonal magnetic and electric field components of the EM field at different frequencies.

Apparent resistivity is calculated from the simultaneously measured horizontal electric and magnetic
components of the EM field at any given frequency.

Direct current resistivity (IP/Res)

Directly inject current into the ground.

Measure the resulting potential difference.

The apparent resistivity is obtained from knowing the injected current, the resulting voltage and
a factor that depends on the geometry of the electrode configuration

Time domain electromagnetic resistivity (TDEM)

Induce a current by generating a primary magnetic field. The induced current have an associated
secondary magnetic field.
Measure the rate of decay of the secondary field.

Resistivity is calculated from the rate of decay.

 Physical property ranges

Conductive mineral concentration

must be significant to provide
conductive paths which are real
alternatives to pore fluid paths,
i.e.minerals must occur massively
to effect the earth conductivity
locally.
 Direct current methods (DC IP/Res)

Inject current directly into the ground and measure the resulting potential difference
as well as the induced polarization effect.

The apparent resistivity is obtained from knowing the injected current, the resulting
voltage and a constant that depends on the geometry of the electrode configuration.

The apparent chargeability is commonly obtained by measuring the area under the
decay curve (for time domain IP).
 Direct current method (DC IP/Res)

There are two microscopic

effects that cause the
macroscopic effect we
measure as chargeability,
namely membrane
polarization and electrode
polarization

The apparent chargeability is commonly obtained by measuring the area under the
decay curve (for time domain IP).

Chargeable ground may take several seconds to return to equilibrium after it has been
polarized with a current source.
Common electrode array configurations

Pole – pole Pole - dipole

Dipole - dipole

Wenner Schlumberger
Choice of the ‘best’ electrode array

Things to consider geologically:

1) Depth of investigation
2) Geological environment in detail with respect to electrical characteristics
3) Geological environment in a regional sense with respect to electrical
characteristics

Things to consider geophysically:

1) Sensitivity of the array type to vertical and horizontal features/structures

2) Signal strength
3) Sensitivity of the meter
4) Expected background noise level

Things to consider economically:

1) Total data coverage needed

2) Time needed for data acquisition and processing
3) Safety issues and logistical support needed
4) Total costs
Gradient array field measurements
Gradient array field results
Typical gradient array products
Dipole data plotting for pseudosections
Dipole field measurements
Dipole pseudosections
Typical dipole products