The Otago Pioneer Quartz Gold Exploration Project is owned 100% by NAE and is located on South Island NZ, west of Dunedin. In January 2019, NAE was granted an Exploration Permit covering 71.55 km2 including the historic Otago Pioneer Quartz (OPQ) Gold Mine.

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Figure 1- NAE Otago South Gold Exploration Permit and OPQ Historic Mine and Exploration Target Location

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Historic records indicate the OPQ Gold Reef was mined over 100 years ago averaging 2m wide over a strike length of at least 1,200m and yielding an average of around 13 grams per tonne Au.

Exploration around the OPQ historic mine area by Macraes Mining Company between 1991 and 1997 showed As and Au soil anomalies over a distance of approximately 1 km strike length above the area of the OPQ reef historically mined.

NAE Soil Sampling Programs

NAE undertook a soil sampling program using a man-portable drill and hand auger in February 2018 and a follow up program in September 2018.  Key results included:

  • 2 samples located approximately 700m southeast and along strike of the OPQ historic mine and previously defined soil anomaly recorded gold values of 1.4 g/t and 0.6 g/t
  • 0.66 g/t gold located ~2,700m southeast and along strike of the OPQ historic mine and previously defined soil anomaly and ~2,000m southeast and along strike of the 1.4 g/t and 0.6 g/t gold soil results obtained by NAE in February 2018.
  • 0.55 g/t and 0.25 g/t gold on a line located north of Lake Mahinerangi ~3,000m northwest and along strike of the OPQ historic mine and previously defined soil anomaly.

These results potentially extend the strike length of the OPQ gold target significantly (up to 6km in total) and highlight the potential for one or more narrow zones of high-grade gold mineralization.

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September 2018 Fieldwork – soil sampling with man-portable drill

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Otago Pioneer Quartz Gold Project – NAE Exploration Results to Date and 2019 Phase 1 Forward Work Plan

Work Program 2019

New Zealand based technical consultants, CRL Energy, were engaged by NAE in August 2019 to undertake Phase 1 of the 2019 OPQ gold exploration program which commenced in mid-September 2019.

Phase 1

The 2019 Phase 1 gold exploration program underway comprises; geological mapping, hand auger soil sampling, man-portable percussion drill soil sampling, rock chip sampling, portable XRF analysis, and laboratory analysis for gold over the OPQ gold target.
The Phase 1 program includes:

  • Hand auger soil sampling, portable XRF analysis, and gold assays in 3 areas;
    • North of Lake Mahinerangi at the northern extent of the OPQ trend
    • At the southern extent of the OPQ trend
    • Within a parallel structural zone identified in the east of the Permit
  •  Man-portable percussion drilling to penetrate into primary soil horizon / bedrock where there is thicker wind-blown cover. This includes additional man-portable drill lines in 2 areas to the north and south of the historic OPQ Gold Mine.
  • Geological mapping

Follow Up Phases 2 and 3 Planned

The 2019 Phase 1 program is aimed at more closely defining targets for aircore drilling (~20m deep holes) and trenching planned as part of the follow up Phase 2 program, subject to the results of Phase 1.

A follow up Phase 3 program, comprising of deeper RC and/or diamond drilling (>50m holes), is also planned subject to the results of Phases 1 and 2.