Engineering & Mining Journal

JUN 2013

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 42 of 171

REGIONAL NEWS - EXPLORATION ROUNDUP Gold Road Resources, an Australian junior company, has executed a binding exploration joint venture agreement with Sumitomo Metal Mining Oceania, a subsidiary of Sumitomo Metal Mining, over the southern tenements of Gold Road's Yamarna land holding 140 km east of Laverton, Western Australia. The joint venture covers more than 2,720 km2 of Gold Road's tenements in the region, which total about 5,000 km2. Under the agreement, Sumitomo can earn up to a 50% interest in the joint venture by funding $8 million in exploration activities over the period to December 31, 2016, including spending a minimum of $3.5 million prior to the end of 2014. Sumitomo can earn an initial 30% interest in the joint venture by spending $5 million and can elect to accelerate its funding if supported by strong exploration results. Gold Road will act as manager of the joint venture during the farm-in period, with oversight from a joint management committee comprising two representatives each from Gold Road and Sumitomo. The companies have agreed to a budget of $1.75 million for a 2013 exploration program that began in May, consisting of surface geochemical sampling and Heli-SAM surveys followed by 15,000 m of RAB/Aircore drilling. ( measured and indicated resources of 145 million mt grading 0.30% copper, 0.10 g/mt gold, and 0.006% molybdenum at a 0.28% copper equivalent cut-off. ( Pegasus Metals, another Australian junior, has reported numerous high-grade drill intercepts at its Mount Mulcahy copperzinc-silver-gold massive sulphide discovery in the Murchison region of Western Australia, where 54 diamond drill holes had been completed as of May 1. Results from the latest drilling on the South Limb Pod target included grades of up 6.8% copper and 6.7% zinc. The drilling confirms that the mineralization extends more than 300 m down dip and to a vertical depth of 200 m. The next round of drilling is aimed at extending the known parameters of the mineralization to a vertical depth of 400 m. ( Southern Hemisphere Mining, an Australian junior company, reports that Lundin Mining has earned a 20% interest in their Chilean joint venture company, Minera Llahuin SCM, after completing its initial expenditure commitment of $3 million. The Llahuin copper-gold exploration project is located in the Coquimbo region of central Chile, approximately 250 km north of Santiago and 56 km from the Pacific Ocean. Lundin's spending of $3 million formed part of an initial phase of exploration spending at Llahuin totaling $6 million, jointly provided by Lundin and Southern Hemisphere. Drilling on the project through mid-May totaled 54,000 m. Lundin has elected to continue to the next phase of investment in the Llahuin project, comprising $10 million of project expenses that it will solely fund to earn an additional 31% of the project by November 2015. In total, Lundin Mining can earn up to 75% of the Llahuin project in three phases by spending a total of $35 million by November 2018. In 2012, Southern Hemisphere reported NI 43-101 and JORC compliant Llahuin JUNE 2013 • E&MJ 41

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