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

Work Program 2019

NAE have been working with the Company’s NZ based consultants, CRL Energy, to design a suitable work program for the 2019 field season.

The program will be implemented to test the results to date, as well as advancing first pass exploration over a parallel structural zone identified in the east of the tenure.

The soil cover is thinner in the northern target area, so trenching and sampling is planned over this area to expose and sample for extensions of the OPQ structure to the north of the lake where results of 0.55 and 0.25 g/t gold have been returned.

In the central and southern target areas the soil cover is thicker and beyond the depth of trenching. Aircore/RC drilling has been planned to intersect the bedrock and test for shearing/veining associated with gold mineralisation in these areas.  The drilling is designed to access three areas between the forestry and conservation areas to initially establish the geology and prospectivity of the trend.

In addition, a structural trend paralleling the OPQ structure has been identified in the east of the tenure from aerial photo imagery. This will be inspected, mapped and sampled using soil sampling methods used to define the extensions of the OPQ trend.

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Otago Pioneer Quartz Gold Exploration Target – Soil Au Results

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NAE Exploration Otago Permit: Target zones and planned activities for 2019