Resources & Geology

Introduction

The Jonnagiri ML is located near the Jonnagiri, Erragudi and Pagadirayi villages within the Tuggali Mandalam in the Kurnool District of Andhra Pradesh State (Figure 1-1). The Jonnagiri village lies on the Gooty–Pattikonda State Highway. The nearest town is Gooty, which is located on the Hyderabad– Bangalore National Highway No.7 and situated 250km north of Bangalore. The nearest railway station is at Pagadirayi which is the broad-gauge line of South-Central Railways. Gooty Railway Station is situated on the Chennai-Guntakal broad gauge line. Geomysore has a granted ML covering 597.82ha (1,477.24 acres), the center of which is situated at about 3.0km northeast of Jonnagiri Village. The Project is located in an area which is known for ancient gold and copper mining activity.

Geology

Jonnagiri ML is situated in the Late Archaean Jonnagiri greenstone belt (JGB) of Eastern Dharwar Craton (EDC). JGB is an arcuate shaped belt, trending E-W to N-S with steep dips to N and E. The belt is dominated by Mafic and Felsic volcanic rocks with subordinate amounts of sedimentary rocks. JGB has undergone greenschist facies metamorphism, Cheval with greenschist facies metamorphism and syn- to post-kinematic granitoid intrusion. Large scale obliqu-slip shear zones along the margins of the belt, particularly along Eastern and Southern margins. These shear zones aided the intrusion of granitoids and also provided pathways for auriferous solutions. Granitoids are dominated by granodiorite with subordinate amounts of diorite and granite. Jonnagiri ML is situated along the southern and Eastern margin of the belt, where both ENE-WSW and N-S shear zones in the granodiorite provided the pathways for auriferous fluid migration and precipitous. Gold mineralization is mainly located in the granodiorite with minor amounts hosted in quartz veins emplaced metavolcanic rocks

Gold mineralization in the ML area is distributed in 4 blocks, namely East, West, South and North Blocks. Geomysore has conducted detailed exploration in the East and West Blocks, to prove 361,000 ounces of Mineral Resource (JORC Indicated and Inferred categories), out of which approximately 271,000 ounces is open pittable. The optimized open pit of the East Block, which was done in the year 2017, contains about 150,000 ounces to a depth of 120m of Probable Mineral Reserve and Geomysore has pursued the detailed Economic Feasibility on this resource. The mine life based on 2017 pit optimization is about 7 years. Recent internal estimates show that the East Block open pit can be expanded to a depth of 180m which would contain 200,000 Oz of resource and increases the mine life to 10 years. In addition to the East Block, resources have been identified in the West block and South block, which can be further developed through detailed drilling. These resources could potentially increase the resource to 0.5MoZ and the mine life to about 15 years. The disposition of mineralized blocks within the ML area are shown above.

Resources

Based on the exploration carried out in the Jonnagiri ML, Geomysore has estimated the resource for East and West blocks. The Mineral Resource estimation and classification of Mineral Resources for the Jonnagiri Project was completed by Mr. Andrew Weeks who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Andrew Weeks has sufficient relevant experience to the style of mineralisation and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition). The following image indicated the various mineralized blocks within the Mining Lease area.

The following table summarizes the estimated current mineral resources.

A) East Block

The East Block is situated the eastern part of the ML Block and extends over an area of 35ha. It is a N-S trending block, which is separated from the west Block by a NE-SW trending major dolerite dyke. Barring a few outcrops in the block, this is largely concealed under a thick cover of soil and ancient mine rejects. This material, which is generally called as “Debris” is an admixture of soil with angular blocks, boulders, cobbles and pebbles of waste rocks ( scree/colluvium) and mineralized rock (quartz vein) which were discarded by the ancient miners. It attains a maximum thickness of about 4m along the ancient pit in East block. The thickness reduces to around 3m elsewhere in the East Block.

Geology of the East block is constructed based on these few outcrops and drill hole data. The average surface elevation of the East Block is 428m and is spread over an ancient artisanal working, which trends N-S and extends over 500m along strike with an average width of 40m. Observations made on the limited outcrops indicate that the East Block is composed predominantly of medium-grained Granodiorite, which at places exhibit intense brittle to brittle-ductile shearing. Trend of the shear zones vary from N-S to NNE-SSW with moderate to steep westerly dips. Where ever found this stretching lineation’s plunge towards NW.

Trenching carried out by Geomysore shows that the East Block has nearly 3-4m thick soil cover mixed with angular boulders of rocks. The angular boulders appear to have resulted either from natural breaking down of the bed rock or from the ancient mining activity. The relative proportion of the angular blocks and boulders in the top layer decreases away from the ancient mining areas. The following image represents view of the East Block

B) West Block

The West block trends NW-SE and covers an area of 32ha. West Block is located in the vicinity of the granite-supracrustal contact. Detailed mapping and observations from the drill cores indicate that the contact between supracrustal rocks and granite in curviplanar, with trend varying from WNW-ESE to NE-SW. The supracrustal rocks in the West Block are represented by metabasalt and metarhyolite. The contact between these two trends WNW-ESE. the dominant structure is the foliation, which trends N80W-S80E and steeply to the NNE. Gold mineralisation in the West Block occurs along WNW-ESE trending lodes in the metabasalt and along NNE-SSW trending shear zones within the granodiorite.

C) North Block

North Block occurs to the north west of the East Block. Although there are only a few outcrops in the area between East Block and North Block, the avilable structural data suggest a possible North-westerly swing to the main shear zone from east block to North Block. The North Block exposes coarse grained granodiorite with thin shear zones. Mylonitic foliation trends NW-SE and dip at moderate angles to south west. Although there are occasional sulphide disseminations on the outcrops, there are no old workings in North Block.

D) South Block

South Block is the southern extension of the West Block into the dominantly granite. The granitic rocks here show the presence of a few NNE-SSW to ENE-WSW trending shear zones, which dip NW at moderate angles. Four such shear zones have been mapped, which are separated by less deformed granitic rocks. These brittle-ductile shear zones often show the presence of thin quartz veins and sulphide disseminations.