Yandal East Gold Project

TECHNICAL OVERVIEW


Location and Access

The Project is located 70km northeast of Wiluna and 25km east of the Jundee operation.  Access to the Project is via well maintained country roads to the Millrose Station which is located immediately east of the Project.  Further access throughout the Project is via a network of station tracks (see Figure’s 1 and 2).  Accommodation and earthworks services are available at Millrose Station.

Figure 1: Regional location and basement geology of the Yandal East Gold Project 


Regional Geology

The Project lies in the Millrose Domain on the northern section of the Yandal Greenstone Belt (YGB) (Figure 1). The YGB is bound by granitic batholiths to the east (Millrose Batholith) and west (Ward Batholith) and separated into eastern and western domains by a large strike parallel fault located approximately 1km from the eastern margin of the belt. There is distinct metamorphic zoning from amphibolite facies close to the granitoid contacts to lower greenschist in the centre. Granitic intrusions range from diorite to granite. Proterozoic mafic dykes are prominent, trending east-west, cross-cutting the granite-greenstone terrains.

Further south, this belt connects with the main YGB, the host of several significant gold mines including the world class Jundee Mine (7Moz), Bronzewing (4Moz) and Darlot (3.5Moz).  The Millrose deposit is located 2km to the east of the Project and has an Inferred Resource of 4Mt @ 2.4g/t Au for 309,000oz.  Gold mineralisation at Millrose appears to be controlled by the flexure of a steep, east dipping shear along the Celia Lineament.

Other gold prospects along strike from Millrose include the Warmblood prospect (Alloy Resources Limited, ASX:AYR) that contains 75,000oz of Au @ 2.4 g/t located 20km to the northwest, and the Julius prospect (Echo Resources Limited, ASX:EAR) that contains 335,000oz of gold @ 2.0 g/t located to the south.  Gold mineralisation at the Warmblood prospect is confined to narrow, highly strained, steeply west-dipping to sub-vertical, north plunging shoots.


Local Geology

There is only limited bedrock exposure within the tenement area – the basement rocks are typically covered by Quaternary cover such as playa lake clays, aeolian sand and associated sheet wash deposits. Bedrock geology has been developed from interpretation of airborne magnetic data supported by lithological information from drilling (Figure 1 & 2).

The greenstone succession is dominated by deformed mafic volcanic rocks. The majority of the mafic rocks are interbedded with felsic volcanics and fine grained pelitic schists and located on the western margin of the project area.  Ultramafic units straddle the prominent Celia lineament which divides the greenstone into the western and eastern domains.

Structures locally within the belt are non-linear, often arcuate, and are disrupted by cross cutting faults.  Magnetic highs are observed to terminate for no apparent reason.  It is proposed that the repetition and termination points of some of the magnetic highs represent repetition by thrusting and sheath folding parallel to the belt, and termination by sheared-out fold closures.

The best mineralisation in the East Yandal area typically occurs close to the eastern granite – greenstone contact, this contact is not well defined, and interpretation is often hampered by lack of outcrop and alteration which is magnetite destructive.  Alteration in these instances may be associated with potentially mineralising hydrothermal events and/or deep weathering within deformed corridors, also potentially mineralised due to structural controls.

The use of modern exploration techniques including geophysics and effective drilling along with a “camp scale” approach to exploration will provide the Company the opportunity for new discoveries.


Previous work programs

The Company is conducting a review of previous exploration and is compiling all of the historical exploration data available for the Yandal East Gold Project.  Table 1 summarises the exploration activity at the Project by the previous operators.  There has been very little work completed since the late 1990’s with only 35 holes completed since that time.

From To Company Exploration
1971 1974 Falconbridge Reported Ni sulphide mineralisation in drilling
1989   BHP Gold/Newcrest Initial report of gold mineralisation at the Millrose Deposit in 1989, leading to the discovery of the Millrose Deposit, 4Mt @ 2.4g/t Au for 309,000oz
1991 1993 Marymia Drilling identifies up to 0.64% Ni in a 5m composite west of Ward (U prospect). c 300 holes completed for gold and base metals
1994 1997 Aberfoyle RAB, Aircore, RC & DD drilling resulting in the discovery of gold mineralisation at Ward. c. 400 holes completed
1997   Eagle Mining/Normandy RAB, Aircore & RC drilling resulting in the discovery of gold mineralisation at Cowza. c. 400 holes completed
1997 1998 Mines & Resources Australia Further Aircore & RC drilling at both Ward and Cowza.  c. 600 holes completed
2003 2008 Goldstar Resources/BHP Geophysics, drilling at regional targets including intersection of 4m @ 2.5g/t @ Mizina; total of 35 holes completed
2014 2017 Zebina Minerals Follow up drilling at Cowza and general reconaissance; total of 8 holes

Table 1:  Summary of historical drilling and significant exploration at the Project

The database compilation is ongoing but the initial assessment indicates that 1,868 holes have been completed for 109,491m with all but 44 holes completed in the 1990’s.  Approximately half of the holes are vertical RAB holes which are largely ineffective as many do not penetrate either the Quaternary cover or the depleted saprolite, and the vertical orientation has limited effect testing the sub-vertical mineralisation.  A further 45% of the holes are aircore with many to shallow and/or oriented vertically and therefore only partially effective.  Only 99 RC and 3 diamond tails have been completed at the Project representing only 5% of the total holes completed.  The Company believes that the ongoing assessment of the drilling database and a further review of the effectiveness of the historical drilling are critical to determine the true extent of the historical drilling coverage.  There is a significant opportunity for discovery in areas of historical drilling due to these complications in addition to the large areas of totally undrilled greenstone.

Drill Type No Holes Metres Average Depth (m) Max Depth

(m)

Min Depth

(m)

Angle
RAB 929 36,286 39 125 3 Vertical
Aircore 837 60,791 73 176 11 Vertical & -60
RC 99 11,732 118 186 28 -60
Diamond Tail 3 pre-collar593

core – 89

198 223 152 -60
  1,868 109,491 59 223 3  

Table 2: Summary of drilling type at the Project (nb: database compilation is ongoing)

Echo Resources Limited (ASX:EAR) have assessed the historic drilling at their Yandal Project immediately south of Renegade’s Yandal East Gold Project. EAR concluded that only 7% of all historic holes “appear to have meaningfully tested geological structures”.  Renegade is confident that a review of the historical drilling at Yandal East will yield similar results that could reveal large areas of effectively undrilled greenstone.

Figure 2: Basement geology and drilling at the Yandal East Gold Project


Tenure

The Project consists of five tenements (in aggregate 327km2) with four granted exploration licences and one exploration licence under application.

Tenement Type Status Area

(Sq km)

Blocks
E53/1547 Exploration Licence Granted 26.37 10
E53/1548 Exploration Licence Granted 76.41 26
E53/1726 Exploration Licence Granted 73.96 40
E53/1835 Exploration Licence Granted 80 26
E53/1970 Exploration Licence Application 70.7 23
Total     327.44 125

Table 3. List of Tenement’s that comprise the Yandal East Gold Project


Acquisition Terms

Renegade has executed a binding agreement with Zebina Minerals Pty Ltd (Vendor) whereby Renegade has an option to acquire 75% of the Project on or before 28th February 2019.  The terms option are as follows:

Earn-in Phase:

  1. Renegade will issue The Vendor A$100,000 of RNX scrip, based on the volume weighted average price (VWAP) for the month of August 2017 (Option Shares). Option Shares will be escrowed for 12 months.
  2. Renegade will also issue to the Vendor an equal number of unlisted options (Options) to acquire RNX shares. The Options will have an exercise price of 125% of the VWAP used to calculate Option Shares above, and will expire 24 months from the date of issue.
  3. Renegade is required to undertake A$350,000 worth of expenditure on the Project within the 18 month option period

Execution Phase:

  1. Upon issuance of its notice of intent to exercise the option Renegade will issue the Vendor an additional A$400,000 of RNX scrip, at a 10% discount to the 20-day VWAP prior to notice of intent. 50% of the shares will be escrowed for 6 months with the balance escrowed for 12 months.

Upon exercise of the Option, Renegade and the Vendor will enter into an incorporated exploration joint venture whereby:

  1. The Vendor retains a 25% free-carried interest, whilst Renegade as the JV operator will continue to fund any exploration and pre-development activities.
  2. Once a decision to mine is made over a defined area or resource, this area will be excised from the exploration JV and a mining JV created over the mining area at the same ratio. The Vendor will be required to contribute to the development expenditure on a pro-rated basis. The exploration JV will remain active over the remainder of the Project.
  3. Should The Vendor choose not to contribute to the mining JV their interest will be diluted, should they dilute to less than 5% its JV interest shall automatically convert to a 1% royalty.

 

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