Overview

In January 2019, NAE was granted a 71.6 km2 Exploration Permit (EP 60502) covering the Otago Pioneer Quartz (“OPQ”) Gold Target located in the Mahinerangi area of Otago, New Zealand.

The OPQ Exploration Permit adjoins NAE’s Lammerlaw Prospecting Permit 60544 to the northwest.

The OPQ Permit contains two gold exploration targets:

  1. The OPQ Reef Gold Target
  2. Macraes Style Shear Hosted Gold Exploration Targets
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Figure 1- NAE Gold Exploration Permits in Otago, New Zealand

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Otago Pioneer Quartz Reef Historic Gold Mine

Historic records indicate that the Otago Pioneer Quartz (OPQ) reef was mined over 100 years ago averaging 2m wide, to a depth of 65m, over a strike length of at least 1,200m and yielding an average of around 13 g/t Au.

OPQ Reef Gold Target – Exploration Results

Exploration around the OPQ historic mine area by Macraes Mining Company between 1991 and 1997 further demonstrated As and Au soil anomalies over ~1km strike length above the area of the OPQ Reef historically mined.

In February 2018 and September 2018 NAE undertook soil sampling programs over the OPQ Reef gold target using a man-portable drill and hand auger with key results including:

  • 4 g/t Au and 0.6 g/t Au located ~700m SE and along strike of the OPQ Reef historic mine
  • 66 g/t Au located ~2,700m SE and along strike of the OPQ Reef historic mine
  • 55 g/t Au and 0.25 g/t Au located ~3,000m NW and along strike of the OPQ mine and north of Lake Mahinerangi

In September 2019, NAE undertook further soil sampling over the OPQ Reef gold target with 223 soil samples from hand auger, 22 samples from man-portable drillholes and 93 rock chip samples collected. Key results included:

  • 5 high-grade anomalous gold results ranging between 0.1 g/t and 2.5 g/t gold in man-portable drilholes
  • A further 3 soil and man-portable drill results showed anomalous gold above background levels

The 2019 results extend the total number of high-grade anomalous gold results obtained by NAE over the OPQ Reef gold target to 10 results ranging between 0.1 g/t and 2.5 g/t gold. A further 5 high-grade anomalous gold results between 0.1 g/t and 0.31 g/t gold were also previously obtained by Macraes Mining Company above the historic OPQ Gold Mine area, increasing the number of high-grade anomalous gold results >0.1 g/t gold over the OPQ Reef gold target to a total of 15.

Results to date confirm a ~6 km potential strike length for the OPQ Reef gold target defined by anomalous gold soil results highlighting 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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OPQ Reef Gold Exploration Project Results – 2019 Program Results Highlighted

OPQ Permit Macraes Style Shear Hosted Gold Exploration Targets

Results from the June 2020 exploration program also indicated the potential for shear hosted gold mineralization along metamorphic boundaries within the OPQ Permit.